In the coming months, the insurance market is awaiting the issuance of the new insurance law, after its approval by Parliament.
Dr. Mahmoud Samaha, head of the Central Administration for Supervision and Supervision at the Egyptian Financial Supervisory Authority, revealed that the draft comprehensive insurance regulation law is currently being discussed in the House of Representatives and Senate, in preparation for its issuance soon, as there has been a great development in the insurance market since 1981 until now.
He added during the third session of the third Afro-Asian Insurance Marketing Conference, which was organized under the title “The Role of Supervision, Achievements and Associations in Developing Markets” that the new law aims to integrate the updates and changes that have taken place in the insurance markets during the past years, and it addresses the problems of the practical application of Law No. 10 of 1981, and its amendments are general. 1995 and 2008.
He explained that the new law included sections for each of the Takaful insurance activities to regulate its work in the Egyptian insurance market, as the articles of the decisions previously issued by the Authority were reformulated to regulate the activity in legal formulation within the new law, with the possibility of introducing amendments to them according to the practical application in the market. And the developments that the two markets are witnessing, locally and internationally.
According to Samaha, the legal articles related to the solidarity activity included in the draft law how to distribute insurance surpluses and profits to shareholders, as well as the formations of boards of directors and supervisory committees.
Samaha considered that limiting the capital of reinsurance companies operating in the Egyptian market in the project to a value of one billion pounds is a modest figure, compared to similar markets, and what was imposed by the decisions of the Central Bank to liberalize the exchange rate, stressing the need for the return companies to have strong financial solvency that enables them to avoid risks on behalf of the direct insurance companies.
According to Samaha, the articles of the new draft law have also been organized, micro-insurance to keep pace with the state’s plan to implement financial inclusion, as well as specialized medical insurance companies and health care management companies (TPA), in addition to addressing associations of insurance-related activities.
He pointed out that the project also touched on the method and criteria for selecting companies’ boards of directors and executive management, and the law aimed to meet the needs of the market and the legislative treatment of it, noting that a comprehensive community dialogue was conducted on the new law to integrate insights into anatomy and market regulation.
He emphasized that the draft law also included a digital transformation in insurance activities, issuance, marketing and electronic collection, and an expansion of the typical types of insurance that are issued electronically.
The article “Financial Control”: The issuance of a new insurance law by the House of Representatives soon, it was written in Al-Borsa newspaper.