Regulatory Alerts2019-01-01
Decision No. (278) of 2019 Regarding the Issuance of Regulations to Govern the Licensing of Takaful Insurance Companies to Operate under the Commercial Insurance System in the Egyptian Insurance Market
The Financial Regulatory Authority (FRA) of Egypt issued Decision No. 278 of 2019 to establish regulatory requirements for Takaful insurance companies seeking to amend their licenses to operate under the commercial insurance system. The decision mandates a comprehensive application process including board and Shariah board approvals, a detailed transition plan, independent due diligence reports, and specific handling procedures for existing Takaful policies and unallocated surpluses. It further outlines a structured review mechanism involving a dedicated committee, requires submission of feasibility studies and reinsurance arrangements, and stipulates final approval procedures before the license amendment takes effect.
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