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The Egyptian insurance sector is forecast to grow at the same rate this year as the 16 percent increase in premium income it showed last year, according to the theFinancial Regulatory Authority (FRA).

Mr Reda Abdel Moaty, vice chairman of the FRA area of growth is travel insurance in which premiums are expected to reach EGP1bn ($64m) a year, compared to EGP60m previously. He explains that there is a new requirement for all Egyptian passport holders to buy the cover whenever they travel. A travel insurance pool has been formed to distribute the risk.

He stresses that the FRA has taken many measures to counter the effects of COVID-19 on the insurance sector, including deferring premium payments by insurance clients and encouraging social distancing.

The regulator has also allowed the expansion of the electronic issuance of some standard insurance policies and the distribution of insurance policies through the branches of the Egyptian Post and through the Nasser Social Bank, reported Shorouk News quoting Dr Abdel Moaty.

He reveals that the FRA is studying microcredit insurance to cover the risks of non-payment. The study is carried out in coordination and cooperation with the Microfinance Union. The volume of microfinance in Egypt is EGP20bn, and the average insurance premium rate is 1.5-2%.