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Tuesday, 8 May 2018

FRA introduces amendments to Insurance Act governing micro-sized insurance companies

LEGISLATION WATCH- FRA introduces amendments to Insurance Act establishing micro-sized insurance companies: The Financial Regulatory Authority (FRA) has introduced new amendments to the Insurance Act that would open the door for the establishment of micro-sized insurance companies, FRA deputy head Reda Abdel Moty said, Al Mal reports. The amendments would allow these companies to offer both life and property insurance under one body, rather than having to establish separate entities specialized in each type of insurance, as is the case for larger insurance players. These companies would also have lower minimum capital requirements.

FRA is also looking into other incentives that could be offered under the proposed amendments, including cutting down on regulatory fees and offering tax cuts or exemptions. The Insurance Act, which would give the FRA regulatory control over the sector once it comes into effect, also contains separate provisions that would grant incentives to insurance companies to cover SMEs. According to Abdel Moty, the FRA expects to finalize its review of the bill “within days” ahead of putting it up for national dialogue. The authority’s board should sign off on the bill by month’s end. The Investment Ministry and Ismail Cabinet would then revise the draft law before handing it over to the House of Representatives to be issued sometime in 2H2018, Abdel Moty previously said.

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