Regulatory Alerts2019-01-01
Decision of the Board of Directors of the Authority No. (181) of 2019
The Financial Regulatory Authority (FRA) of Egypt issued Decision No. 181 of 2019 to mandate insurance companies to explicitly disclose all commissions, bonuses, and incentives payable to insurance brokers within the policy schedule. The regulation requires insurers to list the broker's name, FRA registration number, and the exact commission value under the heading "Payable Commissions". This directive takes effect the day after its publication in the Egyptian Gazette and on the FRA website, ensuring transparent fee disclosure to policyholders.
Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Decision of the Board of Directors of the Financial Regulatory Authority
No. (181) of 2019 dated 30/12/2019
Regarding the Disclosure Guidelines for Commission Values Payable to Insurance Brokers
Board of Directors of the Financial Regulatory Authority
Having reviewed Law No. (10) of 1981 concerning the supervision and regulation of insurance and its executive regulations;
and its amendments;
and Law No. (10) of 2009 regulating supervision over markets and non-banking financial instruments;
and the Statute of the Financial Regulatory Authority issued by Presidential Decree No. (192) of 2009;
and the memorandum prepared by the Central Administration for Supervision and Regulation of Insurance Companies dated 28/12/2019;
and the approval of the Authority's Board of Directors at its meeting held on 30/12/2019.
Has Decided
(Article One)
- Insurance companies are obligated to include all amounts payable to insurance brokers in the form of commissions, bonuses, incentives, or similar items in consideration for their intermediation in an insurance contract, under the title "Payable Commissions", within the data provided in the policy schedule, after stating their name and registration number, as follows:
| Insurance Broker's Name: |
|---|
| Registration Number with the Authority: |
| Value of Payable Commissions: |
- The policy schedule shall clearly state that "it includes the value of commissions payable to insurance brokers"
(Article Two)
This Decision shall be enforced from the day following its issuance and published in the Egyptian Gazette and on the Authority's website.
Chairman of the Board of Directors of the Authority
Dr. Mohamed Omran
Smart Village, Building 136, Giza, Egypt
Postal Code: 110
Telephone: +202 30344020 - Fax: +202 30370066
WWW.FRA.GOV.EG
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