The Egyptian Insurance Supervisory Authority. EISA. The current status of the insurance sector in Egypt. The current status of insurance sector in Egypt Market structure Life insurance Non-life insurance Reinsurance Investments Regulation and supervision of insurance. Market structure
Formed under the chairmanship of the Minister of Planning and the membership of :
- The chairman of EISA and his deputy
- The Chairmen of the insurance and reinsurance companies
- A representative of the insurance funds.
- Two insurance Professors from the Egyptian Universities.
- A Chancellor from the Council of State
- A representative from
the Public Sector Information Center.
Ministry of Planning
Ministry of Finance
the trade unions organization of the insurance sector
each of the auxiliary organs
The Supreme Council of Insurance has the competence to decide the general objectives of the insurance activity and to approve the policies needed for the achievement of these objectives.
EISA has the competence to supervise and control the insurance activity in Egypt whether at the establishment, during transaction or at the termination of the business.
The Authority in particular aims at the implementation of the following objectives :-
1- to protect the rights of insurance policyholders, the beneficiaries and third parties.
2 - to secure the achievement of the economic and social objectives of insurance activity and preserving the national savings.
3 - to secure the soundness of the financial positions of the Insurance market units, coordinating among them and preventing any conflict between them.
4 - to participate in developing insurance awareness in the country
5 - to strengthen the ties of co-operation and integration with the other control and supervisory authorities at the Arab, African, and world level.
6 - to promote the insurance professions and to contribute effectively to the availability of the expertise.
The premium income for Egypt Re is not added to the total premium income
The foreign participation of the paid up capital represents 12.3%
(in L.E. 000)
Act No. 156/1998 allows private sector entry into the capital of the state-owned insurance and reinsurance companies
The Act also removed all restrictions on majority foreign ownership of insurance companies
It also allows non-Egyptians to manage insurance companies based in Egypt
It is worth to mention here that 8 companies are managed by foreign managing directors
Detailed Assessment Report on Observance of the Insurance Core Principles and Transparency of Insurance Regulation was prepared by a lead insurance specialist from Financial Sector Department of the World Bank. The assessment was based on a review of the legal framework, and focused mainly on the supervisory work of the Egyptian Insurance Supervisory Authority.
As a result, and according to EISA’s adopted plan of enhancing the supervision standard in an open market and increased competition, the following new regulatory decrees have been issued : -
The Ministerial decree No.157 for 1999 for the issuance of the Accounting Measures for Insurance and Reinsurance companies .
SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons