Egypt’s FRA wraps up Insurance Act consultations
Thursday, 05 30 2019, Category: Insurance and Reinsurance, Country: Egypt
The Financial Regulatory Authority (FRA) has wrapped up several rounds of consultations on the new Insurance Act, FRA head Mohamed Omran said. There was no mention of the outcome of the sessions, which saw participation from industry stakeholders including representatives from the Insurance Federation of Egypt (IFE) and the Egyptian Healthcare Management Society. We reported last week that the FRA is set to review the draft act before the Eid El Fitr break.
Discussions likely touched on high capital requirements: If passed, the proposed legislation would raise the required issued and paid-in capital of life and property insurance providers by 150% and the minimum legal requirement for reinsurers by 733%. The IFE has made clear that it views the new thresholds as unnecessarily high and is urging the government to reduce them. The industry group also reportedly opposed the bill’s higher licensing and incorporation fees, as well as the doubling of mandatory policy payouts to EGP 80k for car insurance.
Other elements of the draft: According to details leaked in January, the act will also:
Make the FRA the primary regulator of the insurance sector;
Double the ceiling for life insurance payouts to EGP 80k;
Introduce mandatory coverage for public gatherings and venues;
Raise the ceiling of life insurance payouts;
Require individuals with liability-prone professions to obtain liability insurance.