Osama Gabr, general manager of Issue Department at Royal Insurance Company, said the Act no. 10 of 1981 and its amendments for insurance control and supervision in Egypt need amendments to keep up with the modern developments.
The law does not clarify the Egyptian Financial Supervisory Authority’s role. Gabr objects the regulator’s role as the one who approves the insurance policies and new insurance conditions. He suggested that the Insurance Federation of Egypt shall be the one who plays this role as it has the technical expertise. EFSA sometimes places tough rules on subscriptions departments at insurance companies, impeding them from choosing freely the conditions and features of insurance policies which shall comply with the agreements set between insurers and reinsurers, he explained.
Regarding the investment rules set by EFSA, Gabr said they are important as there shall be a supervisor over the funds of policyholders. However, EFSA shall not intervene in the value of subscriptions set by insurers in different insurance sectors, he confirmed.
Insurance brokerage in the Egyptian market needs to be organized more through determining the brokers’ rights and responsibilities, he said. EFSA had earlier set conditions for brokers, a step forward towards improving the sector. Gabr suggested limiting the number of insurance brokers, adding that insurance sector did not benefit from them due to lack of precise conditions.
