Decision No. 104 of 2019 of the Board of Directors of the Financial Regulatory Authority

Dated 4/8/2019 Regarding the Marketing of Insurance Companies' Products through a Branch of Nasser Social Bank

Board of Directors of the Financial Regulatory Authority

Having reviewed Law No. (66) of 1971 establishing a public authority named Nasser Social Bank;
And Law No. (10) of 1981 on the Supervision and Regulation of Insurance in Egypt and its executive regulations;
And Law No. (10) of 2009 on Regulating Supervision over Non-Banking Financial Markets and Instruments;
And the Statute of the Financial Regulatory Authority issued by Presidential Decree No. (192) of 2009;
And the approval of the Authority's Board of Directors at its meeting held on 4/8/2019;

Decided

Article 1

Insurance companies may market their standard products approved by the Authority by establishing a branch for the company at one of the main centers or branches of Nasser Social Bank, as determined in the agreement concluded between the two parties.

The company's branch may have agents or representatives in offices or branches of the Bank of at least the first category, if agreed upon.

Marketing products of more than one insurance company through a single branch of the Bank is prohibited.

Article 2

The following conditions are required to license insurance companies to market standard insurance products approved by the Authority through Nasser Social Bank branches and to register in the registry maintained by the Authority for this purpose:

1. The company must have sufficient technical reserves to meet its obligations prior to policyholders, in accordance with Article (37) of the Law on the Supervision and Regulation of Insurance in Egypt, as reflected in the company's financial statements for the fiscal year preceding the license application, subject to applying the provisions of Articles (25) and (26) of the executive regulations of the aforementioned law.

2. No measures stipulated in Article (59) of the Law on the Supervision and Regulation of Insurance in Egypt shall have been taken against it, unless the reasons for taking such measures have been removed and six months have elapsed since then.

Article 3

Insurance companies shall comply with the following controls as a minimum to balance the activity of marketing their standard products through Nasser Social Bank:

1. Conduct a comprehensive study of the bank branch licensed to operate through it.

2. Establish the necessary policies and procedures to mitigate all risks associated with this activity.

3. Provide evidence that the bank's insurance clients are fully aware that the bank is merely a marketing channel and is not responsible for the terms and conditions of the marketed insurance products, nor for paying any claims, and that responsibility for this lies solely with the insurance company.

4. Allocate a separate space for the company at the licensed branch to market insurance products through the company's employees, agents, and representatives, separately from the bank's banking and service products, with clear disclosure that the marketed insurance products are issued by the insurance company and not the bank.

5. Insurance companies shall propose a work strategy in coordination with the bank to carry out promotion and marketing activities for their products through licensed branches and the necessary procedures to supervise their implementation and submission, and develop necessary plans in coordination with the bank for continuous training of employees, agents, or representatives involved in marketing insurance products through those branches.

6. The team of agents, brokers, or representatives at the insurance company's branch within the bank must meet the requirements for practicing insurance brokerage according to the foundations and conditions specified in the Law on the Supervision and Regulation of Insurance in Egypt.

Article 4

Insurance companies shall conclude a written contract with the bank regarding the marketing of their standard products approved by the Authority through one of the bank's main centers or branches, which shall include at least the following:

1. Identification of the insurance products to be marketed through the bank's centers or branches.

2. Identification of the bank's centers or branches through which the company's products will be marketed.

3. Identification of the rights and obligations of both parties.

4. The value of fees, commissions, and other amounts due to the bank and the basis for their calculation.

5. Commitment to the confidentiality of accounts and customer-related information.

6. Arrangements related to media campaigns.

7. Mechanism for handling complaints received from customers.

8. Determination of the dispute resolution method between the parties.

9. Identification of persons authorized to sign, along with attaching their signature specimens.

10. Compliance with the controls issued by the Authority regarding the marketing of standard insurance products through the bank.

Article 5

Insurance companies wishing to market their standard products through Nasser Social Bank shall submit a request to the Authority accompanied by documents proving compliance with the conditions and controls stipulated in this Decision, prior to concluding the contract with the bank.

Article 6

This Decision 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.

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Chairman of the Board of Directors of the Authority
Dr. Mohamed Omran

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Financial Regulatory Authority
Financial Regulatory Authority

Chairman of the Authority

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Smart Village, Building No. 136, B. Giza, Egypt
Postal Code: 12577
Tel.: +202 35345350, Fax: +202 35345350
info@fra.gov.eg

Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036
www.FRA.gov.eg