Regulatory Alerts2016-04-03
A circular dated March 28, 2016 amending the controls for banks’ practice of bancassurance activity
Dear Sir/Chairman, The Chairman of the Board of BANK has issued a statement to clarify that it is compulsory for banks operating in Egypt to sign agreements with insurance companies (up to two) with no obligation to offer similar products, such as life or property insurance. The purpose of this change is to diversify the services and products offered by banks to their clients, as well as increasing the insurance coverage for different segments of society, given the differences in demand for insurance types from various groups within society. The Egyptian Central Bank's Board of Directors resolved to amend Article 2 of its previous decision No. 2013/1010 regarding rules for banks operating in Egypt's insurance sector on May 21, 2013, specifying that: Banks are allowed to sign agreements with up to two insurance companies - one for property insurance and another for life or health insurance, without allowing them to combine these services. Please be informed of the implementation date of this decision. I appreciate your understanding and cooperation. Kind regards, Ghaly Hassan