Egypt: Regulator in discussions on establishing national reinsurer
Source: Middle East Insurance Review | Nov 2018
The Financial Regulatory Authority (FRA) is considering the establishment of a reinsurer in Egypt with a capital of EGP10bn ($558.3m).
The FRA is currently talking with several government agencies to contribute to the establishment of the reinsurer, according to a report in Akhbarak citing an official source at the regulator.
A number of state-owned funds are expected to contribute to the company, which will be the sole local reinsurer in Egypt when it is established. The market is currently dependent on foreign reinsurers.
The proposed reinsurer will target both domestic and African markets, according to the source who pointed out that global and regional reinsurers, including companies from Kenya and Morocco, are already operating in the Egyptian market.
A draft insurance law, which is expected to be presented to the Council of Ministers by December, will stipulate requirements which international companies in the Egyptian insurance market will need to meet.
The new law will also empower the Authority to license, register, and supervise insurers and reinsurers, and determine the criteria for choosing the management of insurers.
In February, there were media reports that the financial regulator had resuscitated and officially taken over a project to establish a national reinsurer. Moves to set up such a reinsurer had failed to take off since a committee was formed to oversee its establishment in 2014. The reinsurer is proposed so as to take the place of Egypt Re which was merged in 2007 with state-owned Misr Insurance. The objectives for establishing the new reinsurer include retaining business in Egypt and maintaining foreign exchange resources in the country. M
EGP1 = $0.06