Decision of the Board of Directors of the Authority

No. (73) dated 9/7/2014

Regarding the Rules Governing the Practice of Insurance Brokerage Activity within the Arab Republic of Egypt

Board of Directors of the General Authority for Financial Supervision

Having reviewed Law No. 10 of 1981 on the Supervision and Control of Insurance in Egypt,

and Law No. 10 of 2009 on the Regulation of Supervision over Non-Banking Financial Markets and Instruments,

and the Executive Regulations of Law No. 10 of 1981 on the Supervision and Control of Insurance in Egypt, issued by Decision of the Minister of Economy and International Cooperation No. 362 of 1996,

and Presidential Decision No. 192 of 2009 issuing the Statute of the General Authority for Financial Supervision,

and Decision of the Egyptian Insurance Supervision Authority No. 394 of 1997 regarding the Rules Governing the Practice of Insurance Brokerage Activities, Brokers' Obligations, and Prohibited Activities, and its amendments,

and the approval of the Board of Directors of the General Authority for Financial Supervision in its meeting held on 9/7/2014 to approve the Authority's decision regarding the Rules Governing the Practice of Insurance Brokerage Activity within the Arab Republic of Egypt.

---

Provisions

Article (1)

The attached Governing Rules shall apply regarding the practice of insurance brokerage activity within the Arab Republic of Egypt.

Article (2)

The application of Decision No. 394 of 1997 of the Authority regarding the Rules Governing the Practice of Insurance or Reinsurance Brokerage Activities, Brokers' Obligations, and Prohibited Activities is hereby repealed, effective from the date of implementation of this Decision.

Article (3)

This Decision shall be published in the Egyptian Gazette and shall take effect on the day following its publication date.

---

Sherif Samy
Chairman of the Board of Directors

---

Governing Rules

for the Practice of Insurance Brokerage Activity within the Arab Republic of Egypt

---

Governing Rules

for the Practice of Insurance Brokerage Activity within the Arab Republic of Egypt

Chapter One: Conditions and Rules for Registration and Continued Registration of Insurance Brokers

Articles [1, 2, 3, 4, 5, 6]

Chapter Two: General Controls Governing Insurance Brokers in Egypt

Articles [7, 8, 9, 10, 11, 12, 13, 14, 15]

Chapter Three: Broker Obligations towards Insurance Companies

Articles [16, 17, 18]

Chapter Four: Broker Obligations towards Clients

Articles [19, 20, 21]

Chapter Five: Obligations of Reinsurance Brokers

Article [22]

Chapter Six: Investigations and Procedures

Articles [23, 24, 25, 26, 27]

Appendices:

• Appendix No. (1) regarding the rules and controls for the use of electronic means and facilities by insurance brokers.
• Appendix No. (2) regarding the rules and controls for insurance broker advertisements and other promotional activities.

---

Chapter One

Conditions and Rules for Registration and Continued Registration of Insurance Brokers

Article (1)

Insurance brokerage in the Egyptian market refers to any natural or legal person who intermediates in any form in insurance or reinsurance contracts [whether as a member of the production apparatus of an insurance company, a freelance broker, or a brokerage company] on behalf of an insurance or reinsurance company in exchange for a salary, bonus, or commission.

Article (2)

An insurance broker must be registered in the register maintained for this purpose by the General Authority for Financial Supervision [hereinafter referred to as the Authority] in accordance with the provisions of Law No. 10 of 1981 on the Supervision and Control of Insurance in Egypt and its executive regulations.

Registration and renewal shall be by decision of the Chairman of the Board of Directors of the Authority, and deregistration shall also be by his decision if any of the conditions stipulated in this Decision are met. The decision shall be announced via a letter accompanied by a receipt acknowledgment to the concerned party at their address recorded with the Authority.

Article (3)

The insurance brokers register referenced in the preceding article shall be valid for three years, renewable in accordance with the conditions and procedures set forth in this Decision. The applicant for registration or renewal shall pay a fee determined by the Board of Directors of the Authority, not exceeding ten thousand Egyptian pounds for a legal entity, and one thousand Egyptian pounds for a natural person.

---

Article (4)

The following conditions must be met for the registration or renewal of registration of natural persons in the insurance or reinsurance brokers register:

1- The applicant must meet the following conditions:

• Not have been convicted of a criminal penalty or a liberty-restricting penalty for a crime involving breach of trust or honor, unless their reputation has been restored.
• Not have been declared bankrupt, unless their reputation has been restored.
• Not be subject to any legal incapacity.
• Not have been dismissed from employment by a final judgment or disciplinary decision, or have their name struck from the register of a profession regulated by laws or regulations due to matters involving breach of trust or honor, unless at least three years have passed since the issuance of the judgment or decision.

2- Possess one of the following qualifications or experiences:

• a- Higher education degree
• b- Post-secondary qualification specializing in insurance
• c- Post-secondary qualification with at least one year of practical experience in insurance or reinsurance.

The following are exempt from the requirement to obtain one of the aforementioned qualifications or experiences:

• Those previously registered as insurance brokers under the provisions of previous laws.
• Those who prove they were contracted as trainees in the production apparatus of insurance or reinsurance companies before 18/9/2008 and continued working in the production apparatus of these companies until that date, and who hold a secondary general or technical school certificate or equivalent, along with at least two years of practical experience in insurance or reinsurance.

3- Have completed one of the training courses recognized by the Authority within the three years preceding the submission of the registration or renewal application.

4- Pass the examination administered by the Authority for registration or renewal of registration of insurance brokers in the register.

The following conditions must also be met for the registration or renewal of registration of legal entities in the insurance or reinsurance brokers register:

1- The legal entity must take the form of an Egyptian joint-stock company with a stated capital of no less than one million Egyptian pounds, of which at least half is paid up at the time of establishment.

The remainder of the stated capital must be fully paid within a period not exceeding five years from the date of the company's registration with the Authority.

2- The company must submit an application to the Authority for registration and licensing to conduct its activities after establishment, accompanied by the company's articles of association, its bylaws, and the commercial register.

3- The person responsible for actual management or the Managing Director of the legal entity must meet all conditions required for the registration of natural persons in the insurance brokers register, as well as every individual practicing brokerage activities through the legal entity, as detailed subsequently.

4- The company's scope of activity must be limited exclusively to practicing insurance or reinsurance brokerage activities.

---

Article (5)

The application for registration in the insurance or reinsurance brokers register, as stipulated in Article (72) of the Law, shall be submitted on the form prepared for this purpose by the Authority, accompanied by the following data and documents:

First: For natural persons:

• (a) Documents proving that the applicant meets the conditions stipulated in the preceding article.
• (b) Proof that the applicant has passed the examination and courses referred to in the preceding article.
• (c) Documents proving that the applicant meets the conditions specified in Article (1/4) mentioned above.
• (d) The applicant's declaration committing to comply with the rules issued by the Board of Directors of the Authority regulating the practice of the profession.
• (e) A professional liability insurance policy approved by the Authority, as detailed subsequently.
• (f) Employees working in the production apparatus of insurance and reinsurance companies are exempt from submitting this policy.

A document evidencing the payment of the legally prescribed registration fee.

The Authority may request any additional data, documents, or clarifications required by the examination of the application.