CAIRO: Continuing political unrest in Egypt has led to an increase in demand for “political violence” insurance, especially among banks, multinational companies, large factories and hotels, according to insurance experts. The experts added that despite the negative impact caused by the rioting, they are creating a kind of insurance awareness among all people, "natural or legal persons," which promotes the growth of the insurance sector. Abdul-Raouf Kotb, head of the Egyptian Federation of Insurance Companies, said the insurance sector is a key aspect of the state and in order to grow or increase its portfolio there must be security and political stability. The lack of stability will certainly impact economic sectors, which the Insurance sector caters to citing the example of tourism and export sectors, which are influenced strongly by political instability and security, he added. Kotb added that any riots or acts of violence affect the economy negatively. They also reflect clearly on the insurance sector, which is affected negatively due to lower demand for insurance, with the exception of that for political violence, which covers the loss or damage that arises directly from acts of terrorism, sabotage, riots, strikes, civil unrest, rebellion, revolution, insurrection, assault on the sovereignty of the state, and civil war. The breakdown of security and political instability have caused increasing acts of armed robbery, riots, violence, bullying and theft, especially that of cars and factory stores, which leads to an increase in the size of compensation, he said. Ali Bashndy, Vice Chairman of the Egyptian Federation of Insurance Companies, said that political violence creates a kind of boom for the issuance of "political violence" insurance policies.
