Raise the company’s paid-up capital to 5 million pounds until 2023
Subjecting non-banking financial services to the Consumer Protection Agency is a necessity to protect customers
Crescent Egypt for insurance brokerage aims to reach its portfolio of premiums assigned to insurance companies to 200 million pounds by the end of this year 2021.
Ahmed Hassan, managing director of the company, said that the proceeds of the premiums that the company assigned to insurance companies in the market during the past year amounted to about 95 million pounds, compared to about 80 million the previous year.
Hassan added, in statements to the “Stock Exchange”, that the company had succeeded in renewing about 90% of its contracts for the current year, expecting a new portfolio of installments during the first quarter, amounting to 40 million pounds, during the first quarter of this year.
Hassan attributed the increase in the proceeds of the premiums assigned to the companies during the past year to the increase in customers’ awareness of the importance of insurance, especially for some industrial activities, as well as the increased demand for some coverage such as medical and personal accidents after the repercussions caused by the spread of the Corona virus during the last period.
In a related context, “Hassan” said that medical insurance accounts for about 30% of the total portfolio, while the remaining percentage is distributed among all branches of property and liability insurance.
He noted that the company is about to raise its paid-up capital to 5 million pounds within three years until the end of 2023, with an annual increase of one million pounds, to comply with the requirements of the brokerage firms’ capital requirements in the new insurance bill.
According to Hassan, “Crescent Egypt Insurance Brokerage” was registered as one of the arms of the global “Crescent Global Holding” group, in the Financial Supervisory Authority registry number 14 in September 2010, with a licensed capital of 2 million pounds.
The shareholder structure of “Crescent Egypt” includes “Crescent Global Holding”, one of the companies operating in the London market, which acquires 50% of the capital compared to 48% in favor of Ahmed Hassan, who occupies the position of CEO and Managing Director, and the rest is distributed by 2% to individual investors.
On the other hand, “Hassan” stressed the importance of the role of middlemen as a major part of the insurance system to familiarize the customer with the nature of the risks to which he is exposed and the appropriate coverage for them, as well as his comparison of the most appropriate price and the best coverage for each insured risk.
He pointed out that the Financial Supervisory Authority Decision No. 23 of 2014 regarding the regulation of the work of insurance and reinsurance brokerage firms guarantees that among the tasks of the insurance broker is to provide advice and advice to the client, which is confirmed by the Authority’s requirement to have a professional liability insurance policy to ensure the provision of appropriate coverage for the client’s needs, and to compensate the client. In the event that the mediator breaches his role and the terms of the document are not professionally formulated.
Hassan called on the supervisory authorities to classify brokers according to the broker’s ability and experience in each specialized type of insurance, such as engineering risks, petroleum and energy, and according to each risk category in relation to the value of insurance amounts. Where it is inconsistent for an insurance broker to mediate risks with specialized risks and high insurance values without having previous experience or having a technical background of specialized expertise, whether they are employees or global partners.
He continued: “The insurance portfolio of each broker and the personal experience in the sector must be taken into account in accordance with the decisions recently issued by the Authority to increase the value of the professional liability document for brokers, whether from legal companies or individuals.
Hasan stressed the importance of the Financial Supervisory Authority for monitoring documents issued by insurance companies, as it is the party responsible for protecting the rights of the client and monitoring the performance of companies, so that it is stipulated in the insurance policy that any ambiguous interpretation of the document is interpreted in favor of the client, as well as ensuring that the document issued For the “insured” customer it is appropriate to the nature of the risk specific to each activity.
In the same context, the managing director of Crescent Egypt called for the application of the consumer protection law to non-banking financial activities and the individual chapter on individual insurance and another on property and liability insurance, in order to ensure the quality of service provided to clients, especially to insurance companies’ clients, and this in turn will ensure That the competition between companies be based on quality of service and speed in performing the rights and claims of the insured, and not to reduce the coverage price
He continued: “Subjecting non-banking financial services to the Consumer Protection Agency is a necessity to protect customers.”
He pointed out that the Financial Supervisory Authority’s decision to include the broker’s commission in the insurance policy is in the interest of the market in general as long as the client is aware of the role that the broker plays in determining the insured risk and the appropriate coverage for it, as well as supporting the client in obtaining the compensation due if the risk is realized. Stipulated in the terms of the document.
The Financial Supervisory Authority obligated the insurance companies operating in the Egyptian market to list all the commissions, rewards, incentives or otherwise due to the insurance broker for his mediation in the insurance contract under the name (due commissions).
In its Resolution No. 181 of 2019, the Authority directed all insurance companies to include commissions in the data contained in the policy schedule after indicating his name and registration number, as follows: “Name of the insurance broker”, “Registration number in the Authority”, the value of the commissions due.
The decision obligated all companies to clearly state the document’s schedule that “the premium includes the value of the commission owed to the insurance broker.”
On the other hand, the managing director of Crescent suggested establishing a pandemic risk fund between the state and insurance companies, similar to the initiatives taken by some European insurance companies.
He explained that the insurance market should take the initiative to work with the government to develop a risk fund for epidemics, and those in charge of the insurance industry in Egypt need to consider establishing an assembly mechanism that can accompany health crises such as the outbreak of the coronavirus (COVID-19).
He continued: «Insurance companies can work with the government and regional insurance unions to create an insurance fund against the epidemic to cover these health disasters by accumulating premiums that are collected every year and allocated as reserves, and in the event of a similar crisis, insurance companies pay up to twice or three times the amount of the premiums , With the state taking over what was in excess of that ».
The article, managing director of the company: “Crescent Egypt” aims to entrust 200 million pounds to insurance companies by the end of this year. It was written in Al-Borsa newspaper.