Dr. Omran: welcomes linking the insurance companies and FRA electronically
Dr. Omran: FRA reviews a draft law that regulates the insurance activity with various parties in the market
Dr. Omran: FRA is keen to communicate with insurance companies to create an attractive climate for investment
In the framework of the Authority’s keenness to communicate with parties involved in the Egyptian insurance market, Dr. Mohammed Omran, Chairman of FRA’s Board held a meeting with Heads of the Egyptian insurance companies, in the presence of counselor Reda Abdel Moaty, FRA’s Vice Chairman and Chairman of the Insurance Federation of Egypt (IFE) to exchange views on developing insurance activity in Egypt and facing the obstacles in this sector and consequently this will increase insurance contribution to GDP, which currently stands at 1.3%.
During the meeting, Dr. Omran revealed that FRA is reviewing the latest version of a proposal to amend Law no. 10 of 1981 in light of the transformation of FRA from precautionary supervision system to risk control system in line with international regulatory frameworks.
He also urged the insurance companies to submit to the Authority their proposals to develop the current legislative structure that regulates insurance activity and create an attractive environment for investment in that sector. He added that this should be done quickly through holding a number of seminars to receive these proposals and discuss them with all related parties .
Dr. Omran noted that the legislative amendments must take into account the current technological development and must be consistent with any future developments in this regard, in a manner that facilitates the work of the regulator and increases the efficiency and effectiveness of communication with insurance companies and speed up decision-making. He added that the Authority has no objection to study the requests of companies to apply File and Use policy in order to facilitate the procedures set for authentication of insurance policies in light of the requirements of the law. Dr. Omran pointed out that the Authority did not hesitate to allow using this method in regulating, issuing and distributing micro-insurance policies electronically through the network information systems and this shall be applied in accordance with BOD decision no. (902) of 2016.
Dr. Omran added that FRA’s strategy during the next four years aims to increase the contribution of insurance activity in the gross domestic product. He emphasized that FRA wishes that the insurance companies of both commercial and takaful branches will achieve this national goal by providing more effort and by using updated marketing plans in order to raise awareness of the Egyptian citizen after the last statistical report that revealed the impact of lack of awareness in increasing number of canceled policies to 245 thousand insurance policy in the period from January to the end of August 2017. On the other hand, he stressed on the role of insurance companies in expanding insurance coverage to include insurance for school and university students and reaching the largest number of clients in all categories, especially the category that needs insurance badly in line with the Authority’s vision to facilitate and extend insurance coverage for all members of society, that is after defining the rules set for regulating micro-insurance activity.
In the long term, the Authority seeks to increase the number of compulsory insurance types , in particular compulsory liability insurance for a number of professions that require this type of insurance to protect and grant cover against the risks of recourse to compensation in case of unintended professional mistakes. This step shall be held in cooperation with competent bodies and taking into account the distinguished experiences in insurance market in these types of insurance.
FRA’s Chairman appreciated the integrated advertising campaigns adopted by the insurance industry and managed by the Insurance Federation of Egypt (IFE) to increase insurance awareness among members of the society. He added that will have a positive impact on maximizing the total subscribed premiums in both life and property insurance which reached about 22.9 billion pounds during eight months of this year.
Dr. Omran welcomed the fact that the insurance market -through the Insurance Federation of Egypt (IFE) – will take the necessary measures and provide the necessary technological infrastructure to link insurance companies and the Insurance Federation of Egypt (IFE) with FRA electronically. In this respect, this will accelerate the pace of joint work and speed up the necessary approvals that must be obtained for the work of companies and creates a strong database for the industry which will help in developing its performance in the coming period. He also recommended at the end of the meeting that the insurance companies should know how to benefit from the i-score data in developing and improving the rules set for subscription to insurance policies.