Regulatory Alerts2018-01-01
Decision of the Board of Directors of the Authority No. (144) of 2018
The Financial Regulatory Authority (FRA) of Egypt issued Board Decision No. 144 of 2018 to mandate a service fee of one per thousand of total direct premiums for the review and approval of new or amended insurance policy forms. Insurance and reinsurance companies, as well as cooperative insurance associations, must remit this fee to the Authority within two weeks following each quarterly financial year-end. Furthermore, regulated entities are strictly prohibited from passing this fee on to policyholders or insured parties at any rate exceeding the stipulated one-per-thousand threshold.
Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY
Chairman of the Authority
Decision of the Board of Directors of the Financial Regulatory Authority
No. (144) of 2018 dated 2018/9/3
Regarding the Collection of a Service Fee of One Per Thousand for Review and Approval Services of New Insurance Policy Forms or Amendments to Existing Forms
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 its executive regulations and amendments,
and Law No. (10) of 2009 concerning the regulation of supervision over non-Egyptian financial markets and funds,
and Presidential Decree No. (192) of 2009 issuing the Basic Statute of the Financial Regulatory Authority,
and the Authority's Board Decision No. (73) of 2014 concerning the rules governing the practice of insurance brokerage activity within the Arab Republic of Egypt and its amendments,
and the approval of the Authority's Board of Directors in its meeting held on 2018/9/3.
Has Decided
(Article One)
The Authority shall collect from insurance and reinsurance companies and cooperative insurance associations subject to its supervision a fee for services related to the review and approval of new insurance policy forms or amendments to existing forms, at a rate of one per thousand of the total direct premiums. Companies and cooperative insurance associations are obligated to pay this fee within two weeks from the end of each quarterly financial year-end.
Neither the company nor the cooperative insurance association shall be permitted to collect this fee from policyholders or insured parties at a rate exceeding the percentage mentioned in the preceding paragraph.
(Article Two)
This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect as of the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors
Dr. Mohamed Omran
46076
Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036
www.FRA.gov.eg
Smart Village: Building B-136, Giza, Egypt
Postal Code: 12577
Tel.: +202 35370036 - Fax: +202 35345350
info@fra.gov.eg