Non - Banking Financial
Markets

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Insurance sector is one of the fields of non-banking financial services. It provides insurance coverage by issuing property insurance policies and life insurance policies.  That is besides the essential role played by the sector in collecting savings and directing them towards different investment channels. The legal framework regulating the Egyptian insurance market consists of several legislations and rules that enable the Authority to play an effective role in protecting the rights of the policyholders and clients in this sector. These laws and regulations includes: Insurance Supervision and Control Law no. 10 of 1981 and its Executive Regulations as amended by Law no. 118 of 2008 and its Executive Regulations in addition to a set of decisions issued by FRA’s Board of Directors.

The Financial Regulatory Authority (FRA) supervises and regulates the units operating in the Egyptian insurance market, and it is as follows:

1- Direct insurance companies: These companies are specialized in issuing insurance policies (insurance coverage) in the field of property insurance, liabilities insurance, individuals  and funds formation processes, in addition to settling compensation due for such acts if the risk is realized. Insurance companies specialized in a specific type of insurance, whether life insurance or property insurance , which helps to achieve maximum protection for policy  holders , their beneficiaries and others, and is in line with international standards and legislative amendments in Egypt in this regard. Also, insurance companies operating in Egypt offer commercial and takaful insurance formulas. The Authority examines and reviews reinsurance arrangements for new insurance policies and updates the list of insurance providers for companies that accept part of the risks from direct insurance companies and take commission in return. It is worth mentioning that there are 268 reinsurance companies listed at FRA’s list, all of which are global reinsurers.

2- Cooperative Insurance Associations: These entities are formed under the provisions governing the cooperative associations and it adheres to the rules governing the insurance activity and grant its members an insurance system.

It is worth mentioning that insurance companies achieved total premiums of 24 billion EGP on 30 June 2017 with a growth rate of 23% over the previous year. Reports also showed an improvement in the results of insurance companies' activities in general during the period (2014-2017) which will be reflected in attracting more new investments in the Egyptian insurance market during the coming period.

On the other hand, the total net investments of insurance companies was  amounted to 86 billion EGP as at 30/6/2017 compared to 60 billion EGP  in the previous year with a growth rate of 43%. The number of citizens covered by the micro insurance was amounted to 513 thousand citizens with a premium of 50 million EGP compared to 58 billion EGP of insurance coverage (amounts covered by insurance).