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Egypt: Brokers unhappy about non-insurance agents

Source: Middle East Insurance Review | Apr 2019

Insurance intermediaries are protesting against competition from non-insurance entities that engage in the distribution and marketing of insurance products.
 
The intermediaries complain that these competitors are not subject to the supervision of the Financial Regulatory Authority (FRA), reported Al Mal News. This threatens the rights of policyholders in the event of irregularities in the work of such non-insurance entities, the intermediaries said.
 
Non-insurance companies marketing insurance include travel companies, travel agencies and airlines for travel insurance, etc. They issue insurance policies electronically. Travel agencies and tourism companies are monitored by the Ministry of Tourism, while the airlines are monitored by the Ministry of Aviation.
 
Insurance broker Hamdi Abdul Mawla called on the FRA to allow only registered intermediaries to undertake the distribution and marketing of insurance products.
 
He pointed out that the broker, whether a company or individual, must buy professional liability cover in order to obtain its licence and this cover protects the parties dealing with the intermediary against any risks arising from his activity that may adversely affect the client. However, non-insurance agents might not have such liability cover.
 
Mr Gamal Shehata, head of production and branches at Saudi Egyptian Insurance House, explained that the reasons for the participation of travel agencies, tourism companies and airlines in the electronic insurance issuance system and the distribution of the travel insurance policy is that these businesses can then provide integrated services to their customers and deal directly with them. M 
 
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