Circular dated March 28, 2016 amending the controls for banks’ practice of bancassurance activity

Dear Sir / Chairman of the Board of Directors
Bank of

Greetings,

With reference to the instructions regarding the controls for banks’ practice of bancassurance activity issued by the Circular Letter dated May 22, 2013, which stipulated in Paragraph (2) of Article 1 thereof: "A bank is entitled to conclude agreements with insurance companies (up to a maximum of two companies) provided that no similar products are offered (e.g., life insurance / property insurance)."

This, with the aim of diversifying the services and products offered to bank customers and facilitating and providing insurance coverage for an important segment of citizens, and given the difference in the nature of cooperative insurance from commercial insurance from the perspective of a segment of citizens who are insurance seekers, the Board of Directors of the Central Bank of Egypt has approved, at its meeting held on March 23, 2016, the following decision:

"Amending Item No. (2) of Article 1 of the decision of the Board of Directors of the Central Bank of Egypt No. 2013/1010 regarding the controls for banks’ practice of bancassurance activity issued at its meeting held on May 21, 2013, as follows:
A bank is entitled to conclude agreements with insurance companies up to a maximum of one company for each of the following:

• A commercial property insurance company
• A cooperative property insurance company
• A commercial life insurance company
• A cooperative life insurance company
  Without permitting the combination of the commercial and cooperative forms for the same activity in the same branch."

Please be so kind as to alert regarding taking the necessary action to implement the aforementioned circular effective from its date.

Accept our highest respect,
Gamal Naguib