Arab Banking Corporation Says to Activate Bancassurance Service by 2014

Arab Banking Corporation – Egypt (ABC) is targeting the activation of the Bancassurance service by next year. This comes as the Central Bank of Egypt had decided to re-launch the bancassurance system earlier this year during the first half.

Akram Tinawi, Managing Director and CEO of ABC, told Amwal Al Ghad that his bank is currently negotiating with multiple insurance firms so as to start offering the bancassurance services soon. He stated that ABC has not yet selected a certain insurance firm to contract with.

It is worth mentioning that the Central Bank of Egypt (CBE) has recently set the required regulations to allow insurance companies and banks to offer bancassurance services after being suspended in 2007.

The most recent bancassurance regulations and measures set by the CBE are stressing on the necessity of covering risks related to bancassurance services along with separating banks’ activities from insurance companies’ as well as the adherence to transparency and disclosure requirements.

Banks willing to launch bancassurance services shall first submit a formal request to the Control and Supervision Sector before reaching any agreements with insurance companies.

Insurance experts have earlier said to Amwal Al Ghad that the revival of the bancassurance system represents a breakthrough for it shall result in increasing the insurers’ premiums and rising the insurance awareness.