Egypt: Committee to study applications for switch from takaful to conventional
Source: Middle East Insurance Review | Feb 2024
The Financial Regulatory Authority (FRA) has issued a resolution to form a committee to study applications from Islamic insurers for initial approval to change their business to conventional insurance.
At least two Islamic insurers are currently in the process of switching to conventional insurance business. In March 2023, the FRA granted Kaf Life Insurance a conventional life insurance licence. Formerly known as Tokio Marine Family Takaful, Kaf is the first takaful operator to be given the green light by the FRA to convert from takaful to conventional insurance.
It was rebranded as Kaf in 2020 following the acquisition of a 75% stake in it by EFG Hermes Holding and GB Capital. The insurer’s board of directors passed a resolution approving the company’s plans to convert to conventional insurance business in 2021.
Late in 2023, the FRA granted a grace period to KAF for another year to deal with insurance policies under the takaful system.
Another shariah insurer, Wethaq Takaful Insurance Company, has started the process of converting its operations from takaful to conventional insurance.
On 29 January 2023, the FRA published in the Official Gazette a set of rules and procedures for changing the licensing of takaful providers to allow them to operate in the traditional conventional insurance system in the Egyptian market. M