Decision of the Board of Directors of the Financial Regulatory Authority

No. 18 of 2014 dated 9/2/2014

Regarding the Marketing of Insurance Companies' Products through the National Postal Authority

The Board of Directors of the Financial Regulatory Authority, Having reviewed the Constitution issued on January 18, 2014, And the Law on Supervision and Regulation of Insurance issued by Law No. 10 of 1981 and its amendments, And Law No. 10 of 2009 regulating supervision over markets and non-banking financial instruments, And the Statutes of the Financial Regulatory Authority issued by Presidential Decree No. 192 of 2009, And the approval of the Authority's Board of Directors at its session held on 9/2/2014.

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Has Decided

(Article One)

Insurance companies licensed by the Financial Regulatory Authority may market their standard products approved by the Authority by establishing a branch for the company at one of the centers or main branches of the National Postal Authority, as agreed upon by both parties.

It may be agreed between the National Postal Authority and the company that this branch shall have agents or representatives at offices or branches of the National Postal Authority of at least the first category.

The marketing of products from more than one insurance company through a single branch or office of the National Postal Authority is prohibited.

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(Article Two)

The following conditions are required to license an insurance company to market standard insurance products approved by the Authority through its branch at the National Postal Authority:

1. The company must have regularized its status in accordance with the provisions of Article (7) of the Law on Supervision and Regulation of Insurance issued by Law No. 10 of 1981 and its amendments.
2. The company must have sufficient technical reserves to meet its obligations prior to policy issuance, in accordance with Article (37) of Law No. 10 of 1981, as reflected in the company's financial statements for the fiscal year preceding the license application, while observing the application of Articles (25) and (26) of the Executive Regulations of that Law.
3. No measures stipulated in Article (99) of the aforementioned Egyptian Law on Supervision and Regulation of Insurance shall have been taken against it, unless the reasons for such measures have been resolved and six months have elapsed.

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(Article Three)

The insurance company shall adhere to the following minimum controls and procedures to conduct the activity of marketing its standard products through the National Postal Authority:

1. Conduct a comprehensive study of the postal branch licensed for operation.
2. Establish the necessary policies and procedures to address all risks associated with this activity.
3. Obtain the approval of the Board of Directors of the National Postal Authority for the contract concluded with the company, in accordance with the controls and provisions issued by the Financial Regulatory Authority.
4. Provide confirmation that postal insurance clients are fully aware that the postal authority serves solely as a marketing venue and is not responsible for the terms and conditions of the marketed insurance products or for paying any claims, and that sole responsibility for this lies with the insurance company.

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(Article Four)

In addition to general provisions upon contracting between the parties, the contract signed between the insurance company and the postal authority shall include, at a minimum:

1. The insurance products intended to be marketed through the company's branches at the National Postal Authority.
2. The duties and obligations of both parties.
3. The financial consideration due to the National Postal Authority in the form of fees, commissions, and similar payments, and the basis for their calculation.
4. Commitment to the confidentiality of accounts and customer-related information.
5. Arrangements related to media campaigns.
6. Mechanism for handling complaints received from customers.
7. Mechanism for dispute resolution between the parties.
8. Individuals authorized to sign, along with attached signature samples.

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(Article Five)

Insurance companies wishing to conduct the activity of marketing their standard products through the branches of the National Postal Authority shall submit an application to the Authority for its approval, accompanied by documents proving compliance with the controls and procedures stipulated in this Decision, prior to signing the contract with the National Postal Authority and in accordance with the controls issued by the Board of Directors of the National Postal Authority.

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(Article Six)

This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following the date of publication.

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Chairman of the Board
Sherif Samy

Office of the Chairman
46076

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Headquarters: Smart Village, Building 15 - 84 B, Km 28 Cairo/Alexandria Desert Road, Giza Governorate, Postal Code: 12577 Tel: +20 2 2537 0040, Fax: +20 2 2537 0041 Email: info@efsa.gov.eg Website: www.efsa.gov.eg