• Dr. Omran calls on Insurance Federation of Egypt “IFE” to be a partner in establishing a regional institute for sustainable finance in Cairo
Within the framework of the permanent coordination with the parties and entities concerned with insurance draft law, yesterday, at the Smart Village headquarters, FRA concluded the community dialogue held by the Authority since the beginning of this year to discuss the draft law regulating the Egyptian insurance market. This community dialogue aimed at getting the latest version before being submitted to FRA’s BOD at its next meeting in order to send it to the official authorities concerned with issuing the law in its final form.
Upon preparing the first draft law of the new unified insurance law, FRA took into consideration results of the practical application of the existing law, including the problems, difficulties and the changes that occurred in the market. Also, FRA took into account the relevant standards issued by international bodies and organizations. In addition, FRA reviewed number of views and comments from the parties participated in the community dialogue.
Dr. Mohammed Omran – FRA’s Chairman emphasized that preparing the comprehensive insurance draft law comes within the framework of implementing FRA’s strategy 2018-2022. The draft law aims at doubling the contribution of the insurance sector to the gross national product, achieving the regional leadership of the Egyptian insurance market. Moreover, it aims at addressing the practical problems and challenges since 1981, which witnessed the issuance of the law of supervision and control of insurance in Egypt – specifically – the regulation of Takaful insurance and micro insurance and the organization of medical service management companies. Under the new draft law, all insurance activities are subjected to the rules of incorporation and licensing and FRA will not practice any supervision in this regard. In addition to granting FRA the right to establish insurance establishments besides its main authority in the field of licensing. The draft law reconsiders texts of measures and penalties using the method of smart sanctions guided by the latest experiences of international economic legislations, the future of electronic surveillance and the introduction of digital transformation mechanisms in insurance.
During the meeting, FRA’s Chairman asked representatives of the industry and officials operating in the Central Dep. for Supervision of the insurance companies to hold a joint meeting to define malpractices in the market, which put the insurance company under the measures and penalties. He also responded to the desire of representatives of the insurance industry to refer the rates and rules of the upper investment limit to insurance companies which is the main component for its investment policy to FRA’s BOD to achieve flexibility in performance towards maximizing the returns of insurance company’s investment policy.
In order to ensure that the insurance company performs its work in a stable and sound manner, similar to what is done in the banking sector , Dr. Omran has indicated that he is moving forward to include in the draft law that the Authority should review the list of candidates for membership and chairmanship of the insurance companies before presenting to the General assemblies.
FRA’s Chairman welcomed the positive impression he received from international institutions concerned with sustainable development, including the UNEP FI Principles for Sustainable Insurance. That is besides countries supporting the UN-Habitat program following positive recommendations for the first UNEP regional round table in Africa and the Middle East, provided that Egypt shall has a national strategy for sustainable insurance. Such strategy will be followed by all efforts to preserve the resources of the current generation and without prejudice to the rights of future generations, foremost of which is the Egyptian insurance sector.
Dr. Omran added that as an investment in this positive trend, he calls on the Egyptian insurance industry – represented by Insurance Federation of Egypt “IFE – to be a partner in Sustainable Finance Institute, which is established by the Authority to become a Center of Excellency for sustainable finance in the Middle East and North Africa.
It should be noted that the five-month dialogue sessions were attended by representatives of the Insurance Federation of Egypt “IFE” , members of the Insurance Advisory Committee, providers of health care services represented in the Chamber of Health Care Providers in the Federation Of Egyptian Industries , the Egyptian Healthcare Management Society , Future Association of Insurance Brokers , Egyptian Society of Actuaries , Insurance Surveyors and Loss Assessors Society and Governmental insurance funds.