INTERVIEW: AXA Egypt plans to expand in Egyptian market this year: GM

Doaa A.Moneim , Monday 1 May 2023

The insurance sector in Egypt – one of the oldest of its kind in the Middle East and North Africa – has, like all sectors in the country’s economy, been suffering a number of challenges.

Ayman Kandeel.
The Managing Director of AXA Life Insurance Egypt and Chairman of AXA General Insurance Ayman Kandeel.

 

The COVID-19 pandemic and now the nation-wide inflationary wave are the key challenges the insurance sector is facing at present.

Ahram Online discussed in an interview with Ayman Kandeel, the managing director of AXA Life Insurance Egypt and chairman of AXA General Insurance, which is a key player in such an industry in Egypt, the current outlook of the insurance industry as well as AXA’s future plans in the local market.

Kandeel said that the insurance industry has proven its resilience by transforming challenges into opportunities.

“At AXA, supported by technological and human skillsets, we believe that challenges are the key moments to showcase the integral role as a partner to our customers,” he added.

That said, Kandeel said that AXA Egypt has had an ambitious growth journey in which they have adopted a one-stop-shop strategy to cater to evolving customer demands.

“Keen on broadening our distribution network and client portfolio, AXA Egypt forges strategic alliances with partners such as Egypt Post, Post for Investment, Commercial International Bank, and Arab African International Bank. The future looks promising as this dynamic collaboration sets the stage for an enhanced customer experience,” Kandeel said, describing AXA’s cooperation with key governmental entities in Egypt and the private sector.

AXA is expanding distribution channels with its bancassurance partnerships, exploring telesales initiatives, and creating customized products that fit market demands across segments in order to implement its strategy and broaden its customer base in the country, which reaached more than 2.1 million customers by the end of 2022, Kandeel added.

Insurance is a fast growing industry in Egypt. According to the latest figures published by the Financial Regulatory Authority (FRA), total gross premium of this activity grew in FY2021/2022 by 18.5 percent to post EGP 47.5 billion, up from EGP 40.1 billion recorded in FY2019/2020.

“Our overarching objective is to increase penetration rates, which are currently below one percent, and we encourage fellow insurers to collectively consolidate efforts to raise this rate. In parallel, we, at AXA, aim to increase awareness about the importance of insurance through various campaigns and creating educational content, simplified processes, making insurance an everyday product and a simple one,” Kandeel told Ahram Online.

On AXA’s future plans in the local market, Kandeel explained that the company is forging ahead with its investments in Egypt.

“We're on a mission to offer protection with over 40 incredible products, spreading the word and boosting awareness of protection,” he said.

In this respect, Kandeel said AXA targets achieving a growth rate of 30 percent within its premium portfolio during the current FY2022/2023 in June, focusing on offering innovative products and directing its efforts towards digital transformation in the insurance sector.

“Furthermore, we are targetting to maintain our efforts to continue offering new and cutting-edge services, since we have succeeded in providing insurance programs, which primarily focus on helping customers deal with any risks that may impose a threat to their invaluable aspects of life,” according to Kandeel.

In a recent report published by the Egyptian Federation for Insurance, the global economic challenges have negatively affected the insurance industry in Egypt and weakened the size of its premiums. Yet, the report expected it to restore its recovery in 2023 and 2024 amid the expected decrease in inflation during these years.

Its worth noting that FRA has a strategy to develop the insurance industry between through doubling the insurance premiums to reach about EGP 100 billion ($3.23 billion) through 2026 compared to EGP 47.5 billion ($1.53 billion) recorded in 2021 as well as raising the insurance companies investments in the local market to EGP 200 billion.

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