Non-life insurances - Egypt

Egypt

The Non-life insurances market market in Egypt is expected to witness significant growth in the coming years.
According to projections, the market size, measured by the gross written premium, is anticipated to reach US$1,516.00m in 2024.
This indicates a positive trend in the demand for non-life insurance products and services in the country.
In terms of per capita spending, Egyptians are estimated to spend an average of US$13.24 on Non-life insurances market in 2024.
This demonstrates the level of importance placed on protecting assets and mitigating risks in the country.
Furthermore, the gross written premium is projected to experience a compound annual growth rate (CAGR) of 5.70% in the period from 2024 to 2029.
This growth is expected to propel the market volume to reach US$2,000.00m by 2029, reflecting a substantial expansion of the Non-life insurances market sector in Egypt.
When compared globally, it is noteworthy that the United States leads in terms of gross written premium generated.
In 2024, the United States is expected to generate a staggering US$2,500.0bn in gross written premium, highlighting its dominant position in the global Non-life insurances market.
In conclusion, the Non-life insurances market in Egypt is poised for growth, with increasing market size and per capita spending.
As the market continues to evolve, it is crucial for insurers to adapt and cater to the changing needs and preferences of Egyptian consumers.
Egypt's non-life insurance market is experiencing steady growth fueled by increasing awareness and demand for property and motor insurance.

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Analyst Opinion

The Non-life insurance market in Egypt is experiencing significant growth and development.

Customer preferences: Customers in Egypt are increasingly seeking non-life insurance products that provide comprehensive coverage at competitive prices. They are looking for policies that offer protection against a wide range of risks, including property damage, motor vehicle accidents, and medical emergencies. Additionally, there is a growing demand for customized insurance solutions that cater to specific needs and preferences of individual and corporate clients.

Trends in the market: One of the prominent trends in the non-life insurance market in Egypt is the increasing adoption of digital channels for purchasing insurance policies. This shift towards online platforms has made it more convenient for customers to compare different products, obtain quotes, and make payments. Moreover, there is a noticeable trend towards greater transparency and customer-centricity among insurance providers, leading to improved customer satisfaction and loyalty.

Local special circumstances: In Egypt, the regulatory environment plays a crucial role in shaping the non-life insurance market. The Insurance Supervisory Authority regulates the industry to ensure compliance with standards and guidelines, which in turn fosters trust and stability in the market. Moreover, the government's efforts to promote financial inclusion and awareness about the importance of insurance coverage have contributed to the market's growth and penetration.

Underlying macroeconomic factors: The growth of the non-life insurance market in Egypt is also influenced by macroeconomic factors such as GDP growth, inflation rates, and disposable income levels. As the economy continues to expand and consumer purchasing power increases, there is a greater willingness to invest in insurance products for risk mitigation. Additionally, the stability of the political and economic landscape in Egypt plays a significant role in attracting foreign investment and fostering a conducive environment for the insurance sector to thrive.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.