Dr. Mohammed Omran – FRA’s Chairman signed a protocol of cooperation between the Authority – as the regulator on non-banking financial services, including the insurance activity – and the African Reinsurance Corporation (Africa Re) wholly owned by Africa Re which is seeking to implement social responsibility initiatives to serve the insurance industry in the African countries contributing to the company. Under this partnership, African Reinsurance Corporation (“Africa Re”) will provide financial support to establish the first Egyptian actuarial life table.
FRA’s Chairman said that the Egyptian society has known the insurance activity for more than a century; however, there have been no attempts to establish such a table. The alternative was to rely on choosing the nearest English tables that can keep pace with the Egyptian experience in rates of death and disability. He added that the last of these efforts were carried out by the Egyptian Society of Actuaries in cooperation with the Egyptian Insurance Supervisory Authority (the regulator on the insurance activity previously) where both entities prepared three actuarial studies to select the most appropriate English actuarial life table that represents the Egyptian experience in death rates only.
Omar Jouda- Regional Director of African Reinsurance Corporation (Africa Re) stated that he welcomed the cooperation with FRA – as being a shareholder in the African Reinsurance Company – in the specialized technical project. He added that this project is in line with the company’s social mission. In addition, he emphasized that the project aims at establishing the first Egyptian actuarial life tables, studying the factors that affect mortality rates and providing training to actuaries and specialists who will contribute to the continuous updating of the actuarial tables in a valid and binding agreement for both parties for a period of two years.
Dr. Omran pointed out that over the course of extended contracts , regulator found it difficult for the insurance activity to put a fair pricing of life insurance policies in line with the society’s experience of death and disability rates , as stipulated in Article 48 (3 bis ) of the Executive Regulations of Law on Insurance Supervision and Control . The said Article stressed on the importance of taking into account the sound technical principles upon pricing policies to ensure that it is not overpriced and that the price is not reduced to the extent that harms the insurance industry in order to obtain operations. Therefore, the Authority seeks to implement the project of establishing actuarial life tables (death and disability) as well as Sickness Tables for the Egyptian society, and continue to update them to comply with the international performance standards of life insurance markets and the pension schemes offered by private insurance funds. That is besides achieving better and stronger protection of policyholders’ rights through greater accuracy in the calculating reserves and actuarial models of life insurance policies. In addition to developing existing products and introducing new products based on new updated tables in line with the Egyptian market experience.