Huge investments expected to be injected into Egyptian insurance sector

Moody's Corporation for Credit Ratings said huge foreign investments are expected to be pumped into the Egyptian insurance sector.

The Egyptian insurance market is very limited in comparison to Egypt's economy, population and available potentials of the Egyptian market, said the deputy head of Moody's insurance sector for the Middle East and North Africa during a seminar organized Monday in tandem with the Egyptian Financial Services Institute - which is an offshoot of the Egyptian Financial Supervisory Authority.

Mohamed Ali Loundi said the insurance sector represents only 0.7 percent of the Egyptian Gross Domestic Product, while this sector represents between 5 to 10 percent of African and international GDP.

The deputy head of Moody's analytics department expected the flow of huge investments into the Egyptian insurance sector in view of new legislations about to be enacted in this regard.

He added that six main companies dominate about 74 percent of the insurance market, while 25 other firms vie for the remaining 26 percent.

The assistant executive director for Europe, Middle East and Africa said foreign companies would invade the Egyptian insurance market to cover this bloating sector, especially insurance of the naval, aerial, oil and strategic industries domains.