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2018-01-01

Decision of the Board of Directors of the Authority No. 107 of 2018

The General Authority for Financial Supervision (GAFI) issued Decision No. 107 of 2018 to establish regulatory conditions for licensed microfinance companies, associations, and civil society institutions seeking to electronically distribute microinsurance documents. The decision mandates that applicants submit a formal request with specific supporting documents, including an approved insurance contract, distribution channel list, trained personnel details, and applicable fees, while ensuring compliance with reporting obligations and prior disciplinary records. Approved entities must adhere to quarterly reporting, customer protection standards, and exclusivity clauses, and are granted a three-month grace period to fully regularize their operational status under the new framework.

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General Authority for Financial Supervision Decision of the Board of Directors of the Authority No. 107 of 2018 Dated 16/7/2018

Regarding the conditions for direct distribution by licensed companies, associations, and civil society institutions engaged in microfinance activities of electronic distribution services for microinsurance documents

The Board of Directors of the General Authority for Financial Supervision Having reviewed Law No. 10 of 2009 on regulating supervision over insurance and non-banking financial instruments; And Law No. 141 of 2014 on regulating microfinance activities; And Law No. 70 of 2017 on regulating the work of associations and other institutions working in the field of civil society work; And Presidential Decree No. 192 of 2009 issuing the Basic Statute of the General Authority for Financial Supervision; And Board Decision No. 159 of 2014 on the Basic Statute of the Microfinance Supervision Unit for Associations and Civil Society Institutions; And Board Decision No. 173 of 2014 on rules and conditions for companies practicing microfinance activities; And Board Decision No. 36 of 2015 on rules and standards for practicing microfinance activities for associations and civil society institutions; And Authority President Decision No. 902 of 2016 on defining microinsurance and executive conditions; And the approval of the Board of Trustees of the Microfinance Supervision Unit for Associations and Civil Society Institutions dated 12/7/2018; And the approval of the Board of Directors of the Authority in its meeting held on 16/7/2018;

HAS DECIDED:

(Article One) The conditions and procedures set forth in this Decision shall apply to companies, associations, and civil society institutions wishing to provide electronic distribution services for microinsurance documents.

(Article Two) Any company, association, or civil society institution wishing to provide electronic distribution services for microinsurance documents shall submit an application to the Authority using the designated form, after fulfilling the following conditions:

  1. Commitment to submitting regulatory reports to the Authority on time, and addressing inspection and compliance observations, if any.
  2. No disciplinary measures or penalties stipulated in Law No. 141 of 2014 have been taken against it, unless the grounds for such measure have been removed and three months have elapsed.
  3. The application submitted to the Authority using the designated form shall be accompanied by the following documents:
    • A copy of the contract concluded with the insurance company, approved by the Authority regarding the electronic issuance of microinsurance documents.
    • A list of the channels through which the documents will be distributed.
    • Designation of the company's designated employee to handle the electronic issuance of documents.
    • Documentation certifying their completion of training on this by the insurance company.
    • Payment of the fee for application review and study services in accordance with Board Decision No. 108 of 2018.

(Article Three) Companies, associations, or civil society institutions approved by the Authority to provide electronic distribution services for microinsurance documents shall comply with the following:

  1. Notify the Authority of any amendment or change to the contract with the insurance company within one week of its date.
  2. Submit a periodic quarterly report on the distribution activity of microinsurance documents within the company according to the form designated by the Authority.
  3. Comply with the rules and standards for practicing the activity and the principles of the Customer Protection Guide issued by the Board of Directors of the Authority.
  4. Not contracting with more than one insurance company for the same purpose.

(Article Four) Companies, associations, and civil society institutions providing electronic distribution services for microinsurance documents shall be granted a grace period of three months from the date of issuance to regularize their status in accordance with this Decision.

(Article Five) This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.

Chairman of the Board of Directors of the Authority Dr. Mohamed Omran

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