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2015-01-01

Board Resolution No. 66 of 2015 on Rules Governing Insurance or Reinsurance Companies' Dealings with Foreign Insurance Brokers

The Egyptian Financial Supervisory Authority (EFSA) issued Board Resolution No. 66 of 2015 to establish mandatory compliance rules for insurance and reinsurance companies engaging with non-resident foreign insurance brokers. The resolution requires that such brokers hold valid licenses from competent foreign regulatory authorities and that all engagements be formalized through written contracts explicitly defining the rights and obligations of both parties. Additionally, companies must retain copies of these contracts and licenses, promptly report any broker violations to the EFSA, and ensure the resolution takes effect the day after its publication in the Egyptian Gazette.

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Financial Regulatory Authority Egypt

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Egyptian Financial Supervisory Authority

Egyptian Financial Supervisory Authority

Chairman of the Board

EFSA Board Resolution No. (66) of 2015

Dated 31/5/2015

Regarding the Rules Governing the Dealings of Insurance or Reinsurance Companies with Foreign Insurance Brokers

Board of Directors of the Egyptian Financial Supervisory Authority

Having reviewed the Insurance Supervision and Control Law in Egypt issued by Law No. (10) of 1981 and its Executive Regulations;

And the Law Regulating Supervision over Non-Egyptian Markets and Financial Instruments issued by Law No. (10) of 2009;

And Presidential Decree No. (192) of 2009 issuing the Statute of the Egyptian Financial Supervisory Authority;

And EFSA Board Resolution No. (23) of 2014 regarding the Rules Governing the Practice of Insurance Brokerage Activity within the Arab Republic of Egypt and its amendments;

And upon the approval of the EFSA Board of Directors in its session held on 31/5/2015;

Has Decided

(Article One)

Without prejudice to the rules governing the dealings of insurance companies with resident foreign reinsurance brokers stipulated in EFSA Board Resolution No. (23) of 2014, insurance or reinsurance companies shall, when dealing with:

  1. Non-resident foreign insurance brokers, adhere to the following:

    • The reinsurance broker must hold a valid license to operate as a reinsurance broker from a competent regulatory authority exercising powers similar to the Authority in the insurance sector.

  2. The dealings between the company and the reinsurance broker must be conducted through a written and signed contract by both parties, clearly outlining the rights and obligations of each party.

  3. Insurance or reinsurance companies shall retain a copy of the contracts referred to in the preceding clause, accompanied by a copy of the license referred to in clause (1).

Insurance or reinsurance companies shall notify the Authority of any violation attributed to a non-resident foreign reinsurance broker, without prejudice to the company's right to take measures to safeguard its rights in this regard.

(Article Two)

This Resolution shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette, repealing any provision conflicting with its stipulations.

Chairman of the Board
Sherif Samy

Egyptian Financial Supervisory Authority
Office of the Chairman
46076

20 Sh. Abbad El-Din - Cairo - Egypt
Tel: (+202) 27727122
Fax: (+202) 25741000
P.O. Box: 618 - Postal Code: 11111
Email: info@efsa.gov.eg
Website: www.efsa.gov.eg

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