Regulatory Alerts2018-01-01
Decision of the Board of Directors of the Authority No. (145) of 2018
The Financial Regulatory Authority (FRA) of Egypt issued Decision No. 145 of 2018 to amend Decision No. 122 of 2015 regarding the electronic issuance and distribution of standard insurance policies. The amendment authorizes FRA-licensed insurance companies to electronically issue and distribute specified standard policies through their information systems, subject to prior regulatory approval and compliance with established controls. Furthermore, it restricts electronic distribution partnerships exclusively to licensed insurance brokers, travel agencies, and airlines, while explicitly adding personal accident policies to the approved list of electronically tradable standard products.
Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Decision of the Board of Directors of the Financial Regulatory Authority
No. (145) of 2018 dated 13/9/2018
Regarding the amendment of the Board of Directors Decision No. 122 of 2015 regulating the issuance and distribution by insurance companies of certain standard insurance policies electronically through information system networks
Board of Directors of the Financial Regulatory Authority
After reviewing Law No. 10 of 1981 issuing the Law on Supervision and Control of Insurance in Egypt and its executive regulations and amendments,
and Law No. 15 of 2004 concerning the regulation of electronic signatures in Egypt,
and Law No. 10 of 2009 concerning the regulation of supervision on non-Egyptian markets and financial instruments,
and the Bylaws of the Financial Regulatory Authority issued by Presidential Decree No. 192 of 2009,
and the Board of Directors Decision No. 122 of 2015 regulating the issuance and distribution by insurance companies of certain standard insurance policies electronically through information system networks,
and the approval of the Board of Directors in its session held on 13/9/2018.
Has Decided
(Article One)
The following texts shall replace the text of Article One and the text of clause (b) of Article Six of the Board of Directors Decision No. 122 of 2015:
Article One:
Licensed insurance companies registered with the Authority may issue the standard insurance policies specified in Article Two of this Decision electronically through the companies' information systems, and make the policy available for printing and distribution by the insured directly or through any of the entities or individuals specified in Article Six of this Decision.
The company must obtain approval from the Authority to that effect, and must comply with the controls stipulated in this Decision.
Article Six:
An insurance company shall not engage with any entity for the distribution of electronically issued insurance policies except under a contract previously approved by the Authority. The following conditions are required to obtain the Authority's approval:
a.
b. The entity must be one of the licensed insurance brokerage companies, one of the licensed individual insurance brokers registered with the Authority, one of the licensed travel agencies, or one of the licensed airlines authorized by the competent authorities to conduct their activities.
c.
(Article Two)
Clause (e) shall be added to Article Two of the aforementioned Board of Directors Decision as follows:
The electronic issuance and distribution of insurance policies shall be limited to the following standard insurance products:
a.
b.
c.
d.
e. Personal accident policies.
(Article Three)
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 date.
Chairman of the Board of Directors
Dr. Mohamed Omran
Smart Village, Building No. B-136, Giza, Egypt
Postal Code: 12577
Tel.: +202 35345350, Fax: +202 35370036
info@fra.gov.eg
Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036
www.FRA.gov.eg