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Market Entry - Health & Medical Insurance Industry in Egypt: Analysis of Growth, Trends and Progress (2020 - 2025)

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About the Market

The health insurance industry is one of the cardinal components of the global economy by virtue of the amount of revenue it generates, the extent of the global investment, and most prominently the indispensable socio-economic role it plays in securing personal and business risk in the event of unforeseen problems. The key issues in the insurance industry include rising competition, generally soft pricing conditions and tight profit margins. Moreover, the economic turbulence in 2008 has affected employer and corporate health insurance business in the developed countries to some extent, due to cost cutting and lay-off of employees and slowdown of new recruitments. However, at individual levels, the market has not shown any significant slowdown. The health insurance market in developed nations is consolidated by few major players who cover more than 80% of private and public (medicare and medicaid) managed insurance. The cardinal challenges for new capital entrants in the health insurance market include immense competition and rising customer expectations. Success here would be enhanced by expanding digital capabilities, making insurance products easier to understand, compare and purchase. The health insurance market especially in the EU5 countries (U.K., Germany, France, Italy, and Spain) is quite stable owing to a significant contribution from the government. The growth perspective for private players is limited due to universal health coverage plans in these countries. Furthermore, in developing regions the health insurance market for private players continue to challenge as economic recovery throughout the region is overshadowed by low business investment rates and slower industry growth. In some developing nations, the growth prospects remain high due to increasing GDP, rise in disposable income, and growing trend toward health security. Furthermore, the growth of the middle class and high net worth population in these regions presents an immense opportunity for international players to exploit the emerging market. Major players in the market include United Health Group Inc., Allianz SE, AIA Insurance Group, Express Scripts Holding Company, Zurich Insurance Group Ltd., AXA, Aviva Plc, Aetna Inc., International Medical Group, Apollo Munich Health Insurance and Cigna Corporation.

About the Geography

Egypt is an African country, with large oil reserves, led by a semi-presidential government. It was an attractive destination for FDI before the Arab spring. It has a skilled workforce, low labor costs, strategic location, large domestic market, and substantial energy reserves. Egypt is among the top five recipients of foreign investment in Africa with most investments going to the oil & gas, construction, telecommunications, financial services and healthcare sectors.

Since September 2004, the General Authority for Investment and Free Zones (GAFI) has established an economic program to attract foreign investors, together with an average reduction of 35% customs duty and tariff simplification. Though all the economic sectors are open to domestic and foreign investors, those especially targeted by the law, providing the possibility to execute projects under the BOT (build, operate, transfer) form, are agriculture industry, mining, tourism and hospitality, air travel, off-shore shipping transport, goods transport services, oil prospection and drilling, infrastructures. Some strategic sectors like aerospace, defense, and print journalism are subject to specific legislations. Obstacles to investment include excessive bureaucracy, shortage of skilled labor, limited access to credit, slow and cumbersome customs procedures, and non-tariff trade barriers. In addition, rapid population growth continues to curtail the improvement of the standard of living in Egypt.

The condition in Egypt is rapidly improving and opportunities are already arising with growing stability in the country, with infrastructure, energy, and public sectors appealing to foreign investors and FDI pouring into the country.

 

Component Name

Unit

GDP (USD billion)

331

GDP Annual Growth Rate

3.8

GDP Per Capita

2707

Unemployment Rate

12.5

Inflation Rate

14.1

Consumer Price Index (CPI)

190

Interest Rate

11.75

Loans to Private Sector (USD billion)

57.223

Balance of Trade (USD billion)

-3.158

Manufacturing PMI (Index Points)

46.3 Index Point

Ease of Doing Business

131

Competitiveness Rank

115

Corruption Rank

88

Consumer Confidence

81

Consumer Spending (USD billion)

62.25

Bank Lending Rate (Consumers)

13.8

Corporate Tax Rate

25

Sales Tax Rate

10

            

The Market Entry Series

Exploring global markets is now recognized as the shortest way to ensure high time to efficiency conversion, when trying to expand revenues past domestic markets, for firms both large and small. Our market entry series, priced suitably low contains the essentials of all the parameters (Refer: Table of Contents) you must be apprised of before you can have a well informed contemplation of a business opportunity in your choice of industry, in your choice of geography.

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