Dr. Mohammed Omran – FRA’s Chairman asserted that the insurance sector is the oldest and most organized activity in the non-banking financial sector. Egypt has known for 80 years how to monitor insurance activity by issuing the first legislation that regulated insurance business in Egypt and the Arab world. A Royal Decree issued Law No. 92 of 1939 and established the first entity to regulate and monitor insurance activities in Egypt.
He said that the Authority is keen upon issuing its regulatory decisions to protect the rights of its clients and ensure transparency in all non-banking financial transactions that fall under its control and supervision. Dr. Omran emphasized that Egypt has achieved progress on the World Bank Group’s Doing Business Report 2020, where it obtained 8 out of 10 points in the sub-index “scope of disclosure”.
FRA’s Chairman expressed his appreciation to all parties operating in the insurance industry in Egypt, especially insurance intermediaries who constitute the third party in the insurance market. He added that insurance intermediaries provide the link between the clients – whether individuals or institutions – on the one hand and insurance and reinsurance companies on the other hand and perhaps in their absence things are mixed up and time is wasted.
This came during a meeting called by the Authority for representatives of the insurance industry, in the presence of Counselor Reda Abdel Moaty – FRA’s Vice- Chairman and with participation of Mr. Alaa Al-Zoheiry- Chairman of the Insurance Federation of Egypt (IFE) . The meeting was held last Monday evening – at the Authority’s headquarters – to discuss ways to implement FRA’s BOD decision no. . (181) of 2019 regarding disclosure controls for the value of commissions due to insurance intermediaries. All parties including insurance brokerage companies, individuals, insurance intermediaries and insurance companies (property – life) present their point of views on how to implement FRA’s decision and everything related to the implications of its application and international experience in this regard.
The meeting ended with an agreement to form a committee representing all parties of the industry. The said committee shall set mechanisms and a date to start implementing FRA’s BOD decision no. (181) of 2019 and to determine the required data to achieve the authority’s target from issuing the decision.
Counselor Reda Abdel Moaty stressed that this committee shall – promptly- fulfills its tasks. The committee shall start from the eighth of this month at FRA’s headquarters. The results of its work will determine what is in the interest of all parties in the insurance industry and ensure disclosure for policyholders and its beneficiaries.