Regulatory Alerts2021-01-01
Decision of the Board of Directors No. 59 of 2021 Regarding Disclosure Rules for Insurance Broker Commissions
The Financial Regulatory Authority issued Decision No. 59 of 2021, which repeals the prior regulation and mandates insurance companies to disclose the value and percentages of basic commissions due to brokers within their standard receipts or payment notices. Companies must retain client-signed copies of these documents in their issuance files to verify receipt, assuming full responsibility for compliance. The decision takes effect the day after its publication in the Egyptian Gazette and on the Authority's official website.
Financial Regulatory Authority
Chairman of the Authority
Decision of the Board of Directors No. (59) of 2021 dated 4/4/2021 Regarding Disclosure Rules for Insurance Broker Commissions
Board of Directors of the Financial Regulatory Authority
Having reviewed Law No. (10) of 1981 concerning the supervision and regulation of insurance and its executive regulations; and Law No. (10) of 2009 regulating the supervision of non-banking financial markets and instruments; and Decision of the Board of Directors No. (181) of 2019 regarding disclosure rules for insurance broker commissions; and the rulings of the Administrative Court issued in Cases No. (33824, 37071) of Year 74 C.; and after the approval of the Board of Directors in its meeting held on 4/4/2021;
Has Decided:
(Article One) Decision No. (181) of 2019 of the Board of Directors, referred to above, is hereby repealed.
(Article Two) Insurance companies are obligated to include the value and percentages of basic commissions due to insurance brokers within the data provided in the receipts or payment notices currently used by each company, which include the policy number and the required premium amount, for every claim of premiums due to the company regarding those policies. The company shall retain a copy of the receipt or notice, signed by the client indicating receipt thereof, in its issuance file at the company's responsibility. All of this is subject to the regulations issued by the Authority.
(Article Three) This Decision shall be published in Al-Waqai' Al-Masriya (Egyptian Gazette) and on the Authority's electronic website, and shall be enforced from the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors Dr. Mohamed Omran
[Seal of the Financial Regulatory Authority] 46076
Smart Village, Building 136, Giza, Egypt Postal Code: 110 Telephone: +20 35345350 Fax: +20 35370036 WWW.FRA.GOV.EG Building Bridges not walls