File photo: Egyptian Senate. Al Ahram
The talks come after the government-drafted law was approved in principle on February 27. The Senate, which has so far discussed 40 articles of the new law, will focus this week on articles regulating the performance of state-owned insurance funds..
The law stipulates that this type of fund covers risks usually not accepted by insurance companies. “These risks are linked to national and social objectives which are not of interest to private insurers.”
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..
“The last four decades have practically shown that the insurance market urgently needs new legislative and regulatory rules,” said Sirri, adding that “technological developments and the creation of new insurance tools also require the adoption unified insurance legislation..”
Sirri said the new law is needed to cover a host of professions and services recently introduced to the insurance industry..
“It aims to cover the rights of policyholders and private insurance funds,” Sirri said, noting that “the law also aims to streamline insurance rules to comply with new international standards, and to accelerate digitization reforms and the use of financial technology in the insurance sector.”
Sirri pointed out that “the law aims to broaden the scope of compulsory insurance operations in order to achieve insurance inclusiveness and reach the poor and limited income classes who are not currently covered by any type of insurance. insurance, in particular health insurance..”
He explained that the new law will cover all kinds of insurance operations. “The law will regulate insurance companies, special funds, compulsory operations, such as traffic accidents, and set out the new rules for supervising the insurance industry,” 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.”
Senate Deputy Speaker Bahaaeddin Abu Shoka 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 ground in the Egyptian economy,” said Abu Shoka, adding that “the law is in line with Article 221 which states that the Egyptian Financial Regulatory Authority should be 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 is supposed 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.