Back to the complete issue
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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.