Moody’s global credit rating agency has drawn a positive picture of the future of Egypt’s insurance market, saying that low insurance penetration represents an untapped resource.
The agency said the country’s “improving economic backdrop” is an assisting factor for the insurance market's future prosperity, predicting Egypt’s GDP to grow to 5.0 percent for the fiscal year ending June 2016, up from an expected 4.5 percent in the fiscal year 2015 and 2.2 percent in the fiscal year 2014.
It predicted “large scale infrastructure projects to aid job creation and support the expansion of the sector both in terms of commercial and personal lines of business.”
Moody’s pointed out, however, that the market’s growth can still be crippled by “high poverty and unemployment, a lack of skilled workers and relatively simple, albeit improving, insurance regulations.”
