Non - Banking Financial

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Egypt is a member of regional and international insurance associations and organizations, including:

• General Arab Insurance Federation (GAIF)
• Federation of Afro-Asian Insurers (FAIR)
• International Association of Insurance Supervisors (IAIS)
• Association of Insurance Supervisors in Developing Countries (AISDC)
• African Insurance Organization (AIO)
• International Organization for Pension Supervisors (IOPS)
• The D-8 Organization for Economic Cooperation
• The Common Market for Eastern and Southern Africa (COMESA)

The following are snapshots of some of these federations
1. Membership to IAIS
The Authority has been a member of the IAIS since 2005. IAIS was established in 1994 as an international organization with a membership of 190 supervisory and regulatory entities in 140 states worldwide. Insurance premiums of member states are estimated to be 97% of total premiums worldwide.
IAIS Objectives:
• Cooperation among members to ensure the highest regulatory and organizational levels for the insurance industry at the domestic and international level to maintain efficiency, integrity, fairness, and stability of insurance market with the purpose of protecting policyholders.
• Consolidating efforts for institutionalization of efficient levels of regulation through exchange of information and expertise to enhance regulatory approaches in markets worldwide.
• Ensuring integrity and stability of international financial markets.

Egypt’s contribution to the activities of IAIS
FRA contributes to several activities through the membership of the Deputy Chairman in the executive committee. He also works as a deputy chairman of the market ethics committee.
Some FRA staff members are members in the following committees:
• Solvency committee
• Re-insurance committee
• Micro-insurance committee
2. The Arab Forum of Insurance Regulatory Commissions (AFIRC) chaired by Egypt

This forum was founded in Amman, Jordan, in September 2007. The founding states, as well as those that joined later, realized the importance of boosting the role of such authorities in regulation of the Arab insurance markets and development of the insurance industry there. For that purpose, an institutional Arab framework should aim at ensuring harmony among regulatory and supervisory frameworks in the Arab markets, pumping up the level of exchange of information and supervisory expertise, and providing technical assistance in that field, taking into consideration quick-paced developments that the Arab insurance industry is witnessing and the several challenges created by globalization and economic openness.

AFIRC Objectives:
• Strengthen communication and cooperation among Arab authorities mandated with the supervision and regulation of insurance activities with the purpose of enhancing such activities in the Arab insurance markets.
• Boost communication and cooperation in the field of development of organizational, supervisory, and regulatory frameworks and standards for organizing and development of insurance operations in the Arab insurance markets.
• Support efforts of cooperation among Arab authorities for supervision and regulation of insurance operations through sharing information and expertise, as well as joint programmes for provision of technical assistance and training staff of such authorities.
• Foster cooperation with IAIS and other relevant international and regional organizations
• Encourage the forum members to sign understanding memos with member authorities regarding joint cooperation mechanisms.

Egypt represented in the Chairman of FRA.

AFIRC Vision
The forum aims at organizing the insurance sector in member states by promoting cooperation, enhancing transparency, and adoption of international standards.
Forum mission statement
Supporting efforts geared towards achievement of conformity and harmony among systems for supervision and regulation of insurance operations in the Arab countries by supporting members’ application and adoption of international standards for supervision and regulation of insurance activities.

The forum accomplished several achievements, the most important of which are:
1. Strategy of the forum operation
This strategy has been approved for the efficient organization of the future work of the forum through developing annual work programmes that determine its work in an institutional and constant manner. Among the top objectives of the strategy are enhancement of standards of supervision and regulation of the insurance activities of member states to make them conform to international standards and practices adopted by world supervisory and regulatory authorities.
The strategy for the forum operations has been prepared and translated in preparation for approval and adoption as an official document for the forum.

2. The website of the forum
A website for the forum has been developed and updated. It can be accessed through the following hyperlink: http://afirc.org.mytempweb.com/default_en.aspx

3. The educational programme for staff of insurance supervision and regulation authorities
The educational programme for staff in authorities for supervision and regulation of insurance operations aim at the following:
• Develop cadres and expertise at the insurance supervision and regulation authorities in Arab countries.
• Develop skills and capacities of those assigned to undertake this role.
• Help insurance regulators to be updated about what is new and develop their capacities for developing the control systems in markets they belong to.
• Build their capacities to address future challenges in supervision and regulation.
• An agreement was made with Bahrain Institute for Banking and Financial Studies (BIBF) to prepare the curricular modules of the programme.

4. Cooperation with IAIS
• Most of the member states to the forum joined the IAIS.
• Many representatives of the member states to the forum joined the different committees of the IAIS.
• It was agreed to reconsider the international standards for insurance that were published by the IAIS given developments that occurred in the non-banking market over the previous years.

5. Formation of the technical committee mandated with study of the 1975 agreement on the unified insurance card for passage of vehicles across Arab countries.
The technical committee was formed to study the 1975 agreement on the unified insurance card for passage of vehicles across the Arab countries. Egypt is a member to this committee. The work plan of the committee was adopted and the necessity for coordination with the GAIF was stressed.

6. Committee for capital adequacy and preparation of financial reports
In pursuit of achieving harmony among member states regarding regulatory frameworks related to solvency, members agreed to form a committee for capital adequacy and preparation of financial reports to be chaired by Egypt and have Jordan, Saudi Arabia, Oman, and Lebanon as members. The purpose is to develop a standard form to calculate capital adequacy, and solvency margin for Arab insurance markets based mainly on Solvency II standard. The Committee was also mandated to develop a model for preparation of corporate financial reports based on the IFRS, and to take samples from the insurance markets in the member states with the purpose of studying and submitting findings to the meeting of the next forum session to approve a specific model, while taking into consideration the different conditions in the international and Arab markets.

7. Membership of the D-8 Organization for Economic Cooperation
Egypt has been a participant in the D8 since its establishment in 1997. The D8 is an economic bloc composed of eight countries including Egypt, Indonesia, Malaysia, Pakistan, Nigeria, Iran, Turkey, and Bangladesh. It was formed in anticipation of the challenges of globalization and open markets and expected competition involved.
Egypt is playing a leading role inside the D8 through chairmanship of the of insurance infrastructure committee, which aims at enhancing the infrastructure of insurance markets in these countries in general and solidarity insurance in particular.

In 1981, the COMESA agreement started as a preferential trade zone with the purpose of establishing a free trade zone among the member states to develop into a customs union, then a common market. In December 1994, the agreement took its current form. Egypt joined the COMESA in 1998.

Egypt joined the agreement for liberalization of services trade among COMESA member states (i.e. States of Eastern and Southern of Africa). It participates in the project for evaluation of service sectors in member states. The number of COMESA members is 19 after the withdrawal of Angola and Tanzania. The members include Burundi, Comoros, Democratic Congo, Djibouti, Egypt, Eretria, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Cecil, Sudan, Swaziland, Uganda, Zambia, and Zimbabwe.

Regarding the relation between COMESA states and the World Trade Organization (WTO), the number of COMESA states which joined the organization is 13. They are Burundi, Democratic Congo, Djibouti, Egypt, Kenya, Madagascar, Malawi, Mauritius, Rwanda, Swaziland, Uganda, Zambia, and Zimbabwe. There are another five countries in the phase of accession to WTO: Comoros, Ethiopia, Libya, Cecil, and Sudan.

After liberation of services trade, which is one of the objectives of the COMESA Agreement, it aims at establishing a unified region for free movement of commodities, services, capitals, and labor among its members. Therefore, during the 12th meeting of the prime ministers of the COMESA states in November 2001 in Lusaka, Zambia, it was affirmed that it was necessary that the COMESA Secretariat develop a draft regional agreement for liberalization of services trade, listing the subject of services trade on the agenda of subjects to be discussed in the trade and customs committee.