الهيئة العامة للرقابة المالية

• • Fire Insurance Accounted for 18% of Written Premiums and Recorded a 42% Retention Rate in 2025
  • AI, Predictive Analytics and Parametric Insurance Vital for Risk Assessment and Broader Coverage

  Dr. Tarek Seif, FRA Vice Chairman emphasized that developing the Egyptian insurance market requires a fundamental shift in risk management strategies—moving away from post-disaster loss minimization toward advanced risk engineering, proactive prevention, control and predictive assessment.

  Speaking on behalf of FRA during the keynote address at the opening session of “Fire Loss Prevention Conference”—organized today by the Insurance Federation of Egypt (IFE) led by Mr. Alaa El-Zoheiry—Dr. Tarek Seif addressed a distinguished gathering of insurance and reinsurance executives and industry experts.

  

Dr. Seif highlighted that fire insurance accounted for approximately 18% of total written premiums in 2025, recording 42% retention rate and 37% loss ratio. He noted that these figures make updating risk assessment and management practices an urgent priority to safeguard investments and ensure the stability of insurance portfolios.

He explained that while these metrics underscore fire insurance as a core segment of the market, they also highlight the pressing need to enhance risk evaluation tools. Over the years, the fire branch has faced recurring losses driven by the frequency and severity of incidents, as well as heightened risk profiles in several cases.

FRA Vice Chairman stressed the importance of expanding pre- and post-loss risk control measures—combining preventative actions prior to an event with mitigation strategies after an incident occurs. This dual approach improves the quality of accepted risks, enhances underwriting and pricing decisions, optimizes portfolio management and reduces overall losses.

In this context, Dr. Seif called for developing innovative insurance products capable of reaching underserved segments and geographic regions. He highlighted the potential of index-based and parametric insurance as key mechanisms to boost financial inclusion within the fire insurance sector.

Furthermore, expanding coverage and elevating risk management standards requires leveraging artificial intelligence, data analytics and predictive modeling. The industry must transition from relying solely on historical loss ratios toward a forward-looking risk assessment framework, enabling early detection and proactive management of shifting risk profiles.

Dr.  Tarek Seif affirmed that this direction aligns with the regulatory framework established by the Unified Insurance Law No. 155 of 2024. The law grants FRA exclusive jurisdiction over the establishment, licensing, supervision, and regulation of insurance and reinsurance activities and related professions. It also reinforces risk-based supervision across the Egyptian insurance market. Looking ahead, the sector must redefine the role of insurance—moving beyond loss compensation to actively reducing incident probabilities and mitigating impact through advanced risk engineering and management.

Concluding his address, FRA Vice Chairman invited conference participants to issue practical, actionable recommendations to advance the fire insurance sector, particularly in risk engineering, prevention and control mechanisms, product development and the adoption of AI and predictive analytics. He reaffirmed FRA’s full support for any proposals that elevate market efficiency, strengthen fire risk management and broaden insurance coverage.