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Tunisia: New insurance law to be implemented in 2018

Source: Middle East Insurance Review | Feb 2017

The General Insurance Commission (IGA) is working on a new Insurance Code to ensure that the progressive legislation will be adopted this summer and implemented in 2018, according to its Director General Ahmed Hardouk.
 
   Mr Hardouk said the draft will be forwarded to the Prime Minister next June and later to the Assembly of People’s Representatives for adoption, in an interview with the news agency Tunis Afrique Presse.
 
   “This is a radical revision, the biggest reform since the creation of the Insurance Code in 1992,” he said, noting that the objective is to modernise the legislative framework governing the sector and keep it in line with international standards.
 
   Mr Hardouk said: “The governance of insurance companies will be strengthened, at the level of the boards of directors, and technical structures in the organisational structures of insurance companies will be put in place and tasked with risk management, damage assessment and technical testing.”
 
   The second part of the draft Code concerns the establishment of a legal framework for life insurance, he said, pointing out that this class of business, which represents only 15% of the total market share, is still underdeveloped. The target is for life insurance to contribute 30% of total market share in five years.
 
   The new Insurance Code will also contain several chapters related to the insured. Insurance contracts will be more clear and simplified, and compensation periods will be revised.
 
   In addition, an insurance mediator entity will be created within the Tunisian Federation of Insurance Companies (FTUSA), and will be responsible, among other tasks, for handling complaints.
 
   Tunisia’s insurance law underwent several amendments during the years 2002 and 2005, through the Motor Insurance Act and also in 2008 with the creation of the General Insurance Authority. In 2015, a legal framework for takaful was developed.
 
   Mr Hardouk also spoke of the management and organisation of insurance intermediaries, stressing that the sector should work towards enhanced professionalism among intermediaries and prioritise education and training for them. 
 
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