Egyptian Senate gives preliminary approval to new insurance law – Society – Egypt

Senate President Abdel-Wahab Abdel-Razek said the articles of the law will be discussed in detail during the Senate plenary sessions on Monday.

The bill was approved by the Senate Financial and Economic Affairs Committee on February 13 after being seized by the House of Representatives

Hani Sirri, head of the Senate’s Financial and Economic Affairs Committee, said the Unified Insurance Bill aims to develop comprehensive new rules to regulate the insurance industry and market in Egypt.

“Four decades of effective implementation show that the insurance market urgently needs new legislative and regulatory rules,” Sirri said, adding that “technological developments and the creation of new insurance tools also require the adoption of unified insurance legislation”.

Sirri said the new insurance law drafted by the government is also needed to cover a new group of professions and services related to the insurance industry.

“In this regard, the new law aims to cover the rights of insurance policyholders and private insurance funds,” Sirri said, adding that “the law also aims to streamline insurance rules to comply new international standards, as well as accelerating digitization reforms and the use of fintech in the insurance sector.

Sirri also indicated that “the law aims to broaden the scope of compulsory insurance operations in order to achieve insurance inclusiveness and reach poor and limited income classes that are not currently covered by any type of insurance. insurance, in particular health insurance”.

A report released by the committee found that the Egyptian insurance industry comprises 41 companies that collect EGP 47.5 billion in insurance payouts per year and pay EGP 33.5 billion in insurance compensation (about $3 billion and $2.1 billion, respectively).

“Net investments of insurance companies reached EGP 131.466 billion in July 2021, besides the fact that there are 692 insurance funds which collect EGP 10.5 billion in annual contributions, pay out EGP 9.9 billion in compensation and have EGP 85.61 billion in investments,” the report said, adding that “these figures show that Egypt has a thriving insurance market, but it needs to be effectively regulated and supervised.”

Senate Deputy Speaker Bahaaeddin Abu Shoqaa said the law is in line with Article 28 which states that the state should do its best to create a conducive investment climate and pay special attention to small, medium and micro-enterprises in all fields.

“In this regard, the law makes insurance compulsory for small businesses to encourage them to gain more ground in the Egyptian economy,” Abu Shoqa said, adding that “the law also complies with Article 221. which stipulates that the Egyptian Financial Regulator (FRA) is responsible for monitoring and supervising non-banking markets and instruments, including capital markets, and insurance activities.”

Phoebe Fawzi, another vice president of the Senate, said the law seeks to unify all laws governing the insurance industry into one law. “This explains why the law is about unified insurance, not to mention that it aims to align with international standards and technological developments in the insurance sector in order to attract more investment to Egypt in this field” , Fawzi said.

Senator Hassanein Tawfik said the new law clearly reflects the government’s policy of modernizing vital economic sectors and digitizing its performance.

Senator Hani Sirri said the new law will cover all kinds of insurance operations.

“This law will regulate insurance companies, special funds, compulsory operations such as road accidents, as well as new supervisory rules for the insurance sector,” Sirri said, adding that “at the end , we will have a unified law that will regulate all forms of insurance in Egypt in accordance with international rules and methods and impose stricter control.

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