Regulatory Alerts2019-01-01
Circular No. (5) for the Year 2019
The Financial Regulatory Authority (FRA) of Egypt issued Circular No. (5) of 2019 to strictly regulate the handling of tender-based insurance contracts by licensed insurers. The directive mandates that all such contracts must be executed directly through the insurer's management without any production commissions, except where documented evidence confirms a broker's active facilitation role and the contracting party explicitly permits brokerage involvement. Additionally, insurers are strictly prohibited from reclassifying these direct tender operations as production-based business during policy terms, renewals, or subsequent amendments.
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