Abdel Raouf Kotb, chairman of the Insurance Federation of Egypt (IFE), suggested changing the insurance cost percentage incurred by Egyptian banks for small and medium enterprises (SMEs) to reach between 25-30% as in European countries instead of 10%.
On the sidelines of the 1st Annual Global Finance & Investment Conference, Kotb added that insurance companies and banks differ on the insurance cost percentage as insurance companies incur 90% and banks incur 10% only. “These are unfair percentages which increase the risks of insurance companies,” he noted.
He revealed that the Takaful (Islamic insurance) scheme has started in Egypt in 2003 and there are eight Takaful companies in Egypt. The Takaful, which attracts high demand, represents an added value to banking transactions in Egypt, he added.
