Low penetration rate of bancassurance

The Egyptian Financial Supervisory Authority (EFSA) is willing to revive the bancassurance business.

During a workshop dedicated to this activity, Sherif Samy, EFSA chairman took stock of the distribution of insurance through the banking network. To date, eight insurance companies collaborate with 17 banks to distribute their products.

Out of a total of 14 billion EGP (2 billion USD) life and non life premiums, only 2.5 billion EGP (350 million USD), that is 17.85% of premiums were underwritten through this channel in 2014.

The low penetration rate of bancassurance was mainly due to lack of communication and to mismanagement of both actors banks and insurers.

According to many observers, the potential of bancassurance is very high in Egypt and especially outside the Greater Cairo area which is already saturated by traditional networks.