• Dr. Omran: It’s time to establish policyholder protection funds
In a move that reflects FRA’s keenness on youth and helping them in joining insurance companies operating in the Egyptian market, Dr. Mohammed Omran – FRA’s Chairman reveals the Authority’s rapid response to the request of the Insurance Federation Of Egypt to facilitate the procedures of registering new trainees as insurance intermediaries in FRA’s registry thus, this will provide more than 5000 jobs in the field of non-banking financial activities.
FRA’s Chairman issued a regulatory decision binding to the competent departments within the Authority to complete all registration procedures in FRA’s intermediaries’ registry within five working days at the most from the date of submitting the application for registration and all needed documents in this regard. The data – in the application – provided by the insurance intermediary shall include the e-mail address or mobile phone numbers for ease of communication with insurance intermediaries and to inform them of FRA’s decisions.
This came after FRA’s Chairman meeting with Board members of the Insurance Federation of Egypt to discuss some important measures and initiatives for the development of insurance industry and follow-up the implementation of what has been agreed upon to increase the contribution of the insurance sector to GDP and reach regional and international levels.
In terms of protecting the rights of policyholders, Dr. Omran said that representatives of the Federation have shown great enthusiasm in starting to activate Article 43 of Law No. 10 of 1991 on Insurance Supervision and Control. Both sides discuss a project to establish policyholder protection funds after agreeing on the importance of establishing the fund according to an actuarial study and presenting a perception of the way and method in which the Fund is managed according to several alternatives being evaluated and selected to achieve the purpose of establishing the Fund.
FRA’s Chairman also expressed his keenness in initiating coordination between the Authority and the Federation to take urgent steps to link the Authority and the insurance companies with an electronic link system for the exchange of data instantly that allows the provision of services and electronic regulatory control. In addition, this will help the companies to provide the regulatory requirements in the right time and quickly respond to the needed market’s services. Consequently, this will reduce the cost and burden on all parties; build databases that contribute to the development of insurance products and create new products suitable for the Egyptian society.
Mr. Alaa Al-Zuhairi, Chairman of the Insurance Federation of Egypt presented the possibility of revising the rules and regulations set for publishing advertising materials to insurance companies in order to facilitate their procedures and prior approvals.
In this context, Counselor /Reda Abd Elmoaty – FRA’s Deputy Chairman confirmed that FRA has quickly respond to the Federation’s request in the framework of the current controls and regulatory decisions that are organized to facilitate the companies and remove any obstacles to support the insurance market.
He added that the Authority is currently preparing a project to develop legislations and laws governing the insurance activity in order to transfer from precautionary supervision system to risk-based supervision and update financial compliance standards in accordance with the latest international standards.
By the end of the meeting, the Authority was briefed on the steps taken by the Federation during the coming period to contribute effectively to the promotion of the insurance industry and offering insurance coverage for the individuals and properties in a move that spread culture awareness of the insurance activity within the Egyptian society and in a manner that diversify segments of the society that benefit from the insurance coverage, besides providing insurance services for new clients from low-income groups which suit their insurance needs and financial capabilities.