Insurance experts have different opinions about the local market’s need for more life takaful insurance companies. Some experts said there is a need for increasing the number of these companies; while others believe that the existing companies are enough, because of the deteriorated economic situation. However, some experts said the market’s problem is not in the number of companies, but in the management strategy of these companies.
Abdel Raouf Kotb, chairman of Insurance Federation of Egypt and managing director of Egyptian Saudi Insurance House, said the Egyptian market needs more insurance life companies, whether in commercial insurance sector or takaful insurance sector. Kotb demanded reintroducing bank insurance model to boost life insurance sector. Number of life insurance companies is far less than the number of property insurance companies, meaning that the market is in no need for more property insurance companies.
Kotb said Egyptian Saudi Insurance House studies establishing a life takaful insurance. The return of political and security stability will contribute in increasing the number of insurance companies.
Mostafa Salah, head of group insurance department at Egyptian Takaful Insurance (Life), said the number of life takaful insurance companies in the local market is enough. The slow growth rate in the Egyptian insurance market shows the market does not require more companies, especially amid the retreat of group insurance sector, due to the workers’ protests that increased after 25th of January revolution last year, in addition to the deteriorated economic situation.
Ahmed Nagiub, managing director of Promise Insurance Brokerage Company, said Egyptian Takaful Insurance (Life) is the only life takaful insurance company in Egypt, as the other takaful insurance company is currently not operating. Increasing the number of life takaful insurance companies will not boost the sector, but instead there shall be an efficient technical management that will contribute in boosting the growth rate of these companies. The problem is not in the number of companies, but in the management strategy of these companies, Naguib noted.
It is worth mentioning that there are only two life takaful insurance companies which are: Egyptian Takaful Insurance (Life) and Nile Family Takaful Company. Solidarity Takaful Insurance (Life) announced that it will exit the Egyptian market next November. There are five property takaful insurance companies.
