Cooperative Insurance Association guarantees risk of non-payment of EGP 300m in favour of NBE

Daily News Egypt
3 Min Read

The Egyptian Cooperative Insurance Association (CIS) signed a contract to guarantee the risks of non-payment of funds worth EGP 300m in favour of the National Bank of Egypt (NBE).

CIS Managing Director Mostafa Abu Al-Azm said that the coverage was assigned by NBE from the financing of the Micro, Small, and Medium Enterprise Development Authority (MSMEDA).

He added in a press release issued on Sunday by the association that the association’s guarantee of non-payment risks for medium and small projects concerns its branches located in the Delta, Greater Cairo, Upper Egypt, the Red Sea, and South Sinai.

Abu Al-Azm also revealed that the relationship with the NBE is historical, given the great confidence in the latter’s ability to fulfil its obligations towards its partners and all its clients on the financial and service levels.

Furthermore, he indicated that there is perseverance and strenuous efforts being made all the time to conclude more contracts with various banks, companies, and microfinance associations, in addition to the fact that it enjoys great support from the MSMEDA to be able to achieve unprecedented growth rates in order to achieve a larger market share through the large volume of business that the association is preparing to enter, which is close to EGP 500m within two years — by the end of June 2024 — and through many internal reform measures on an ongoing basis.

In other news, Abu Al-Azm revealed the association’s tireless endeavours to raise the level of competencies working in it by refining their expertise with everything that is modern in their fields of specialisation by providing them with full material and moral support without burdening them with allocated time for training courses so that they can obtain all the practical materials that elevate them to the required level for the success of the institution to which they belong.

He also stressed that there has been crisis in terms of a shortage of cadres in the insurance sector that has been in need of a solution for years due to the increasing demand for technical competencies in the market, as it is the first component that affects a company’s productivity positively when available, which is what the association has been doing for a few days, especially in important and influential jobs such as underwriting, compensation, and reinsurance.

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