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Tuesday, 3 April 2018

FRA stakes claim total claim to insurance sector in amendments to the Insurance Act

LEGISLATION WATCH- FRA stakes total claim to insurance sector in amendments to the Insurance Act: Recently-drafted amendments to the Insurance Act would give Financial Regulatory Authority (FRA) chief Mohamed Omran complete dominion over the sector. The amendments would give FRA complete regulatory control over he sector, governing everything from the establishment and licensing of insurance companies, procedures for M&A in the sector, as well as setting standards and practices for the industry, Omran said on Monday, according to Al Mal. The changes would also make the FRA the primary regulatory body for the health insurance industry. Speaking at a conference to promote the Investment Ministry’s 2018-2022 strategy to drive growth of the non-bank financial sector, Omran said that FRA will also have powers to regulate the minute transactions of the industry, including insurance contracts, setting regs for life insurance policies, and regulating online insurance services.

Crackdown on private insurance funds: Also speaking at the conference was Mohamed Maait, who reiterated that private social welfare funds(commonly known as private insurance funds) will also be placed under FRA’s remit, Ahram Gate reports. Maait suggested that the move was part of a wider crackdown on the number of unregistered welfare funds, which will be subject to asset freezes in a forthcoming enforcement drive

SMEs at the center of new insurance policy: On the policy front, Omran reiterated that FRA’s strategy for the industry will include granting incentives to provide insurance to SMEs. These will include lowering insurance fees for SMEs, he added.

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