Egypt

Egypt's insurance sector can be generally described as underdeveloped with big room for growth. The sector has been long held back by the Egyptian public's negative perception of the sector, as well as a heavy state dominance. However this picture is expected to change with further privatization and liberalization.

An upsurge of international competition has joined the local scene, adding efficiency and providing a larger portfolio of coverage. The foreign input has spawned the new Arab International Insurance Company (AIIC), now majority owned by Germany's Allianz Group and with a minority participation by the Japanese company Tokyo Marine. Before the buyout, AIIC had already been a leading provider of insurance solutions and services to organizations in Egypt for over 25 years. But now the company is better able to offer a full range of insurance services throughout the whole country and develop innovative new products.

"The last few years have seen a major restructuring of the company," says John Metcalf, its executive chairman. "This has allowed us to approach the market as a whole, using international standards. We have put in new information technology systems, and increased employee numbers. Supported by a major television campaign, we want to come across as a modern, fresh company."

Typically, insurance companies in Egypt have suffered from a lack of public appreciation and confidence. "Though the sector may have a negative reputation here, we are making sure we are not identified with that," Metcalf explains. "We have a good strategy in place to penetrate the high end of the market. We will not be the cheapest, so we have to make sure our service is far better than the others."

AIIC's German ownership gives it an edge with German clients in Egypt. "We introduce ourselves as part of the Allianz Group," he adds. "The German enterprises are important to us, and we can use our shareholding to help initiate first contact."

"With regard to Japanese clients, we are lucky our minority shareholder is Tokyo Marine," Metcalf continues. "We have a good understanding of their business needs and they can be sure we will address all their insurance requirements."

AIIC's new strategy will give Egypt an enhanced portfolio of high level insurance policies; the company aims to be instrumental in the education of the Egyptian consumer when it comes to insurance needs.

Allianz Group, AIIC's parent company, led other sector players in premium generated income in 2000

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