Regulatory Alerts2016-04-03
A circular dated March 28, 2016 amending the controls for banks’ practice of bancassurance activity
In a letter dated March 28, 2016, the Chairman of the Board of a bank in Cairo, Egypt, addresses the regulations regarding banks engaging in insurance activities. The letter refers to a previous directive from May 22, 2013, which allowed banks to enter into agreements with a maximum of two insurance companies, provided they did not offer similar products. The bank's Board of Directors has now approved a modification to this regulation, allowing banks to partner with up to one company for each of the following: Commercial Property Insurance, Takaful Property Insurance, Commercial Life Insurance, and Takaful Life Insurance. This change aims to diversify services, improve access to insurance coverage, and cater to customers who prefer Takaful insurance over commercial insurance.