Egypt - Regulator deliberates the incorporation of microinsurers
Tuesday, 10 02 2018, Category: Insurance and Reinsurance, Country: Egypt
Micro-insurance is transpired to be deliberated by officials of the Egyptian Financial Supervisory Authority, as they are drafting a new insurance law and may embed an article allowing the incorporation of collaborative insurers specializing in providing coverage to micro enterprises.
" The introduction of the micro-insurance article bolsters EFSA's strategy of ramping up insurance growth as well as the generation of new opportunities in addition to approaching the international federations specializing in the field, notably the world-spread Collaborative Insurance Federation," said deputy chairman of EFSA Judge Reda Abd El-Moaty.
The new collaborative firms will be allowed to combine both life and property insurance, and thus reverse the existing regulations of Law 10 year 1981 and amendments of law 118 year 2008 stipulating the splitting of the two into separate entities, he continued.
" Any regular insurers shall not be prohibited from providing insurance coverage to micro enterprises as long as they adhere to effective rules obligating the separation of life and property insurance."
Over the past two days, EFSA's committee chaired by Dr. Mohmed Omran met with heads of leading insurers, as they proposed stimulating the insurance coverage of micro and small-sized enterprises through a plethora of legislative incentives.
The drafting bill will contain a provision that enforces and makes the issuance of insurance coverage by MSEs a per-requisite for licensing the business, Abd El-Moti said.
Also, owners of MEs will have other incentives such as relieving them from paying fees for supervision, monitoring and issuance.
Source: Al Mal News