FRA to create first Egyptian actuarial life table

Dr. Mohammed Omran, chairman of the Financial Regulatory Authority, recently announced steps to establish the first Egyptian actuarial life table for the life insurance industry. Such step comes within the framework of  “Markets development” stated in the comprehensive strategy for the development of non-banking financial markets 2018-2022.

Dr. Omran said that creating an Egyptian actuarial table is one of the main steps to develop the Egyptian life insurance market and increase its efficiency, adding that life insurance companies in Egypt still depend on English actuarial tables, which have been set since the middle of the last century to price their products. It does not accurately represent the Egyptian life insurance market and consequently this impacts pricing of various insurance products.

According to Omran, financial indicators of the insurance industry in Egypt indicate that the total premiums of insurance companies amounted to EGP35.2 billion at the end of June 2019 with a growth rate of 19.3 percent compared to 2018. Of these, approximately EGP15.4 billion are the total premiums of  life insurance branch with a growth rate of 26.3% percent. There are 39 insurance companies operating in the market, of which 15 are life insurance companies.

Barnet Waddingam will be responsible for implementing the project. A contract was signed between the FRA and the consulting office in May 2020.

The project is funded by the African Reinsurance Corporation ( Africa Re) in accordance with a cooperation protocol with the Authority.