Egypt's new insurance Bill, which was recently finalised, aims to tighten governance in private insurance funds, requirements for members' general meetings and forming the boards at private insurance funds.
Mr Reda Abdel Moaty, vice chairman of the Financial Regulatory Authority (FRA), who revealed this, also said that the proposed new insurance law would cover matters like transparency and disclosure at private insurance funds. It would deal with mechanisms for settling complaints and disputes.
Private insurance funds are schemes established in companies or associations that also pay benefits or periodic salaries to members who find themselves in need. In particular, they play a vital role in the provision and management of pensions.
Other proposed amendments to the insurance law that would affect private insurance funds include:
- entrusting the management of the private insurance funds' funds to a specialised investment manager,
- allowing the establishment of special insurance funds in accordance with the three internationally recognised practices: defined benefits, defined contributions, and a hybrid system. The legislative amendments will also set out the mechanisms and requirements for switching from one system to another.
Dr Mohamed Omran, FRA chairman, revealed on 29 July that the final draft of the proposed unified insurance law has been completed. The finalised Bill, will be tabled at the next meeting of FRA's board.