Major officials of 25 countries participated in Insurance Industry Conference

Minister of Finance opened on Monday 18^th February the Seventh International Summit for Tontine

Al-Morsy Hegazy: Choosing Cairo for hosting the conference notwithstanding the current circumstances, assures Egypt’s position

Dr. Al-Morsy Hegazy, Minister of Finance, opened on Monday 18^th February the Seventh International Summit for Tontine, held in Cairo for 2 days in presence of major officials of Insurance Industry of 25 countries across the world, in order to discuss the outlook of tontine industry as a component of Islamic Financing System.

Dr. Al-Morsy Hegazy declared that choosing Cairo as a hosting place for this international meeting instead of London, where all previous summit meetings were held, notwithstanding the current circumstances in Egypt, is considered a testimony of International Business Society Vision for Egypt’s potentials and its growth and prosperity in upcoming few years.

He also said that the government and the Ministry of Finance are keen on supporting the insurance industry generally and increasing its role in Economic Development, as it is an essential factor in developing local money market, including insurance sector, banking system and stock market. All these parties contribute in mobilizing local savings to be redirected to investment sector in order to raise the Egyptian GDP growth rates.

He explained that both keenness and interest were motives behind the MoF’s plans to issue the law organizing the use of Sukuk (Islamic bonds), which is considered one of the most important Islamic financial instruments as well as   Tontine (Takaful), already existed in the Egyptian markets many years ago, to meet the needs of a social class for financial instruments in line with Islamic Sharia.

He added that the tontine (Takaful) industry plays an increasing role in mobilizing savings to be directed to investment. International indicators show success of tontine (Takaful) insurance companies worldwide in achieving   $ 12 billion, total insurance premiums in 2012, ranging between    25 & 20    % annual growth rates which is considered the highest rate in financial sector and exceeded only by Sukuk market growth rates worldwide.

The Minister explained that Egypt shared in such growth .Takaful insurance companies, since their existence in the Egyptian market during nineties of the last century, have achieved accelerated growth rates, and they still have a chance to enhance such growth. Now, Takaful insurance companies attain only 5% of local insurance market which is estimated at LE.10 billion.

He said that the summit will discuss the obstacles and problems encounter Takaful insurance industry, some of them attribute to the relative modernity of such field. He pointed that the participants in the conference will review plans and strategies of Takaful insurance sector development through financial products and instruments designed by a team of experts  during the  sixth summit held in London in 2012, and discuss the challenges and opportunities faced by developing countries and the new markets of  Islamic financial instruments.

Mr. Abd EL-Raouf Kotb, the chairman of the Insurance Federation of Egypt (IFE), confirmed the importance of hosting the International Takaful summit in Cairo, which succeeded to be one of the most important international events for Takaful insurance industry, as it is a chance to deeply discuss prospects of insurance industry to find and develop effective solutions for problems and obstacles encountered.

He added that the said conference held for the first time outside the European Continent and Cairo was chosen to be its first destination outside Europe, in such difficult circumstances in Egypt; so it gives great and significant testimony for global capital market vision in the Egyptian market and Egypt favorable economic outlook, if Allah wills.

He said that the conference is an opportunity in to inform the international and local community about the role of Tontine (Takaful) Insurance) companies operating in Egyptian market to satisfy its customers’ needs and varied insurance programs presented by it. He indicated that the Egyptian Market may be the bridge connecting Arab and Islamic Insurance Markets with African countries, Islamic Insurance tools succeeded in attracting saver tranches from different religions and beliefs, as they are characterized by high professionalism and enable them to achieve better financial results for their clients.

Several international and regional entities organized the summit sponsored by the Ministry of Finance , including Afkar Consulting ,Keo Consultancs, Weqaya Takaful, Norton Rose, Hannover Re , Africa Takaful recover, Tokyo Marine , Almasria for Takaful Insurance , Haya F. W. Fitch Kristar , and Tomson Reuters .