Regulatory Alerts2021-01-01
Circular No. (8) of 2021
The Financial Regulatory Authority requires all Egyptian insurance companies to consolidate applications for multiple terms, conditions, exceptions, and addenda into a single product endorsement rather than submitting them separately. This directive addresses recent influxes of flexible and broadly formulated requests attached to multiple policies or entire insurance branches. Specialized insurance types remain exempt from this consolidation requirement, ensuring streamlined regulatory approval while maintaining fair pricing and market stability.
Financial Regulatory Authority
Deputy Chairman of the Authority
Circular No. (8) of 2021 Issued on 29/6/2021 Regarding the Regulations for Submitting Applications for Approval and/or Endorsement of Certain Terms, Conditions, Exceptions, and/or Addenda
In the context of the Authority's efforts toward the stability and regulation of non-banking financial markets, as well as its commitment to applying Law No. 10 of 1981, particularly Article (86), which stipulates: "Entities subject to the provisions of this Law are obligated to notify the Authority of all issued general insurance tariffs, life insurance rates, and terms and forms of insurance policies, as well as any amendments thereto, for review based on necessary studies to ensure fair pricing. Such tariffs, rates, terms, or forms may not be applied until endorsed by the Authority...".
In this regard, and following the Authority's circular sent to all companies through the Egyptian Insurance Union on 30/3/2021.
Furthermore, the Authority has recently noted an influx of requests from insurance companies regarding the approval and/or endorsement of certain terms, conditions, exceptions, and/or addenda to be attached to multiple policies or an entire insurance branch, which may involve flexible and broad formulations.
Therefore, the Authority draws the attention of insurance companies to refrain from submitting applications for the endorsement of multiple terms, conditions, exceptions, and/or addenda - if desired - to be attached to a single insurance product, with the exception of specialized insurance types.
(Signature) Deputy Chairman of the Authority Advisor / Rida Abdul Mu'ti