By Favour Nnabugwu
The Council of Ministers has approved the country’s draft unified insurance law in Egypt, the much awaited draft legislation closer to enactment.
The Cabinet decision states that the new draft law sets out specific and comprehensive rules for the insurance industry in Egypt, and organising the rules for supervision and control over them.
This will be for the Egyptian insurance market the first time a unified and comprehensive law that regulates supervision and control mechanisms over the practices of insurance activity in Egypt.
The draft stipulates that the Financial Regulatory Authority, exclusively, shall have jurisdiction over the establishment, licensing, and control of entities engaged in insurance, reinsurance, and associated services, professions and related activities.
New areas covered by the draft legislation include microinsurance, private insurance funds and litigation in economic courts. The draft also introduces new compulsory classes of insurance.
Previous media reports said that the minimum capital requirement for insurance companies will be increased.
The draft Bill consolidates four separate laws passed over the years. The first draft of the proposed insurance law was announced at the end of 2018.