EFSA Approves Insurance Federation Of Egypt’s Statute

The Egyptian Financial Supervisory Authority’s (EFSA) board of directors has approved the statute of the Insurance Federation of Egypt (IFE) in its meeting yesterday, said Mohamed Meit, deputy chairman of EFSA.

EFSA has made minor amendments to the statute so it was approved by consensus, but the date of holding IFE’s elections will be determined by the Federation’s board of directors headed by Abdel Raouf Kotb.

EFSA also has set bancassurance regulations including that the the insurance company shall have good financial position during the last two years to be eligible to offer bancassurance service, EFSA’s deputy chairman added.

Each bank shall deal with no more than two insurance companies; one of them is life insurance and the other is non-life insurance. These regulations confirm with bancassurance regulations issued by the Central Bank of Egypt last week. EFSA will announce all the regulations within the next few days.

CBE announced in a statement last week the regulations and procedures of bancassurance including the importance of covering risks related to bancassurance and the total separation between the activities of insurance companies and banks as well as adherence to disclosure and transparency standards.