- The Egyptian Financial Regulatory Authority (FRA) has issued a notice giving insurance brokerages that use technology in their business models three months to comply with new regulations.
- Resolution No. 215 of 2023 modifies previous rules for practicing insurance brokerage activity in Egypt, requiring insurance brokers to collect fees, premiums, and other amounts through non-cash payment methods.
- Brokerage companies have three months to apply for compliance with the new regulations.
- The FRA aims to improve work mechanisms to protect insurance policyholders and enhance transparency and oversight in the insurance sector.
The Financial Regulatory Authority (FRA) in Egypt has given insurance brokerages that use technology in their business models a three-month notice to comply with new regulations. The FRA’s decision, issued as Resolution No. 215 of 2023, modifies previous rules for practicing insurance brokerage activity in Egypt. The resolution states that insurance brokers are now required to collect insurance fees, premiums, and other amounts through payment point machines provided by the company or any other non-cash payment method of their choice, or according to checks issued by customers in favor of the company. Brokers are prohibited from collecting payments in cash, except within the limits specified by law and with official receipts.
The FRA’s decision aims to improve work mechanisms in insurance companies, protect the rights of insurance policyholders, and enhance transparency and oversight in the insurance sector. The FRA encourages the use of technological mechanisms and applications to achieve the insurance coverage goals set by the authority. The decision also stresses the importance of electronic linking with insurance companies to establish accurate databases that facilitate transparency and oversight.
Brokerage companies have a three-month period from the date of the decision’s implementation to apply for compliance with the new regulations. They must submit a request to the FRA that outlines the company’s requirements and procedures for full compliance with Resolution No. 215 of 2023. The FRA will then review the request and may grant an extension based on the justifications provided by the company.