Circular No. (8) of 2021

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

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