Counselor Reda Abdel Moati – FRA’s Deputy Chairman revealed that FRA allowed more than 30 travel agencies and companies, including 6 companies in Alexandria only, to distribute travel insurance products. That is in addition to 23 insurance companies and 81 insurance brokerage companies which have more than 429 branches covering the entire Republic. He added that more than 11 thousands insurance intermediaries were licensed to conduct this activity to facilitate procedures in this type of policies.
Counselor Reda Abdel Moati said that as part of the Authority’s supervisory and regulatory role in the insurance activity and its vision to open new channels for marketing insurance policies and facilitate access to them; new standard products such as personal accident insurance policies were added. Also, he noted that rules governing E-issuance of insurance policies were updated, these included:
1. Compulsory insurance for civil liability arising from accidents of rapid transit
2. Travel insurance policies.
3. Life insurance policies that do not require medical exam.
4. Micro-insurance policies.
5. Personal Accident Insurance Policy.
FRA’s Deputy Chairman added that in order to facilitate the procedures and the acquisition of insurance policies and in accordance with the provisions of Article (82) of Law no. 10 of 1981, stating that: “No natural or legal person may practice in the Arab Republic of Egypt any activity relating to insurance without obtaining a license from the Authority”,
FRA’s BOD has issued decisions no. 122 of 2015, 121 of 2016, 79 of 2017 and finally decision no. 145 of 2018 in order to establish rules and regulations governing the E-issuance and distribution of insurance policies through distribution channel stated in the said decisions which require the Authority’s prior approval in accordance with the availability of the necessary conditions set for practicing this activity.
FRA’s Deputy Chairman emphasized there were some companies that were issuing travel insurance policies in violation of the provisions of Article 82 of Law no. 10 of 1981 and FRA’s BOD decisions on regulating the E-issuance and distribution of standard insurance policies. He explained that these companies were practicing insurance intermediary and receiving commissions up to 55% of the insurance premium without obtaining FRA’s approval and in violation of the provisions of Law no. 10 of 1981, its Executive Regulations and FRA’s decisions. In this context, FRA has facilitated all necessary procedures for allowing travel agencies to distribute travel insurance policies. He added that FRA has issued already 30 approvals in this regard. In addition, FRA’s Deputy Chairman pointed out that FRA is calling upon travel agencies to submit their requests to the Authority as soon as possible to obtain the required approvals. He stressed the keenness of the Authority to ensure that companies provide the best insurance services to citizens in the framework of compliance with the rules and provisions of the law to the benefit of citizens and to preserve their rights.