Egypt: Mandatory motor insurance pool accepts 2 more members
Source: Middle East Insurance Review | Oct 2019
The Financial Regulatory Authority (FRA) has approved the inclusion of two more insurers – Tharwa and AXA Property Insurance – in the compulsory motor insurance pool, bringing the total number of members to 18.
Under the pool’s Articles of Association, the two companies will receive 1% of the direct premiums to be collected, after deducting administrative expenses and compensation and provisions related to claims under settlement.
The 18 members have the following shares in the pool shown in the table.
In accordance with the Articles of Association, the allocation of quotas among pool members will be reviewed every two years by the FRA in line with rules set by the regulator.
The FRA approved the establishment of the pool earlier this year, in a bid to curb high costs in the compulsory motor branch, tackle a noticeable decrease in premium collections and allow for a more accurate review of motor insurance rates, reported Al Mal News. Another goal is to combat fraud and forgery. The pool has a linkage with the database of the Traffic Information Systems Department of the Ministry of Interior. Premiums are paid online through Cashless Plus. M