Regulatory Alerts2020-01-01
Decision of the Board of Directors of the Financial Regulatory Authority No. 161 of 2020 Regarding Approval for the Egyptian Cooperative Insurance Association to Adopt Micro-Insurance Policy Coverages
The Financial Regulatory Authority issued Decision No. 161 of 2020 to authorize the Egyptian Cooperative Insurance Association to implement micro-insurance policy coverages. This authorization requires strict adherence to the regulatory definitions and electronic issuance controls outlined in Authority Decision No. 902 of 2016, while explicitly excluding supplementary and compulsory motor insurance alongside medical insurance. The decision takes immediate effect upon issuance and mandates official publication on the Authority's website to ensure regulatory compliance and public transparency.
The General Authority for Financial Supervision
FINANCIAL REGULATORY AUTHORITY
Decision of the Board of Directors of the Financial Regulatory Authority
No. (161) of 2020 dated 26/7/2020
Regarding Approval for the Egyptian Cooperative Insurance Association to Adopt Micro-Insurance Policy Coverages
Board of Directors of the Financial Regulatory Authority
Having reviewed Law No. 10 of 1981 issuing the Law on Supervision and Control of Insurance in Egypt; and Law No. 10 of 2009 on regulating supervision over non-banking financial markets and instruments; and the Statutes of the Financial Regulatory Authority issued by Presidential Decree No. 192 of 2009; and Authority Decision No. 503 of 1998 dated 21/12/1998 issued for the establishment and registration of the Egyptian Cooperative Insurance Association with the Authority; and the Statutes of the Egyptian Cooperative Insurance Association and its amendments; and Authority Decision No. 41 of 2009 specifying the acceptance by the Egyptian Cooperative Insurance Association of any new underwriting for all other insurance branches until the Association increases its paid-up capital as indicated in this Decision; and Authority Decision No. 27 of 2014 obligating the Egyptian Cooperative Insurance Association to increase its paid-up capital to ten million Egyptian pounds (after excluding carried-forward losses) as the minimum threshold in accordance with Article 59 of the Executive Regulations of the Law on Supervision and Control of Insurance in Egypt issued by Law No. 10 of 1981; and the memorandum issued by the Central Administration for Supervision and Control of Insurance Companies dated 14/7/2020; and the approval of the Authority's Board of Directors in its meeting held on 26/7/2020.
Has Decided
(Article One)
The Egyptian Cooperative Insurance Association is approved to adopt micro-insurance policy coverages in accordance with the controls specified in Authority Decision No. 902 of 2016 regarding the definition of micro-insurance, and the executive controls for issuing and distributing its policies electronically through the information technology network in all branches licensed to operate them, except for the supplementary and compulsory motor insurance branches and medical insurance.
(Article Two)
This Decision shall take effect from the date of its issuance, and all competent authorities are tasked with implementing it according to their respective jurisdictions. It shall be published on the Authority's website.
Chairman of the Board of Directors of the Authority Dr. Mohamed Ajaran
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