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Thursday, 31 January 2019

Insurance companies not happy with capital requirements in Insurance Act

LEGISLATION WATCH- Insurance companies object to high capital requirements in Insurance Act: The industry association representing the nation’s insurance company appears displeased with a number of aspects of the Insurance Act, and has prepared its notes on the legislation. The Insurance Federation of Egypt said it will file its notes with the Financial Regulatory Authority, a senior member of the group told Al Mal. The main gripe appears to be the capital requirement minimum for insurance companies, which raise the issued and paid-in capital of life and property insurance companies by 150% to EGP 150 mn and the minimum capital requirements for reinsurance companies by 733% to EGP 500 mn. The source noted that the federation sees these as very steep and will urge that they be reduced. They also reportedly oppose the raising of licensing and incorporation fees, which could reach EGP 20,000 for any new branch. The group also objects to the mandatory policy payout figures for car insurance set in the law, which have been doubled in the law to EGP 80,000 from EGP 40,000 saying that these need to be reviewed.

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