Egypt: Minimum capital to at least double to US$15-19 mln under draft law
Source: Middle East Insurance Review | Nov 2015
The Egyptian Financial Supervisory Authority (EFSA) is currently reviewing a new draft law that would raise the minimum capital of insurance companies from EGP60 million (US$7.7 million) at present to EGP120-150 million.
According to the Al Mal newspaper, EFSA Chairman Sherif Samy said the draft legislation will be sent to the government and the State Council at the beginning of November. A grace period will be given to insurers to comply with the new requirement.
The draft law also provides for microfinance institutions to distribute microinsurance products. EFSA has been actively promoting microinsurance to ease access to insurance for most of the population. Small enterprises employing fewer than 10 workers account for 97% of Egypt’s businesses, according to a 2012/13 census published last year by state-run statistics body CAPMAS. In addition, 40% of the population live below the poverty line.
The new law will also allow the establishment of standalone health insurers, which would need a minimum capital of EGP10-15 million.
Egypt’s insurance law was last amended in 2008.
EGP1 = US$0.13