An administrative court has ruled that insurers do not have to disclose in insurance policies the amount of commissions or incentives paid to intermediaries.
The judgment was issued in a case filed by the attorneys of the Egyptian Centre for Economic and Social Rights acting for some insurance brokers, reported Amwal Alghad.
Last year, the Financial Regulatory Authority (FRA) announced its decision to compel insurance companies to include all commissions, rewards or incentives payable to insurance intermediaries in the insurance contract, so as to improve transparency.
The lawsuit stated that the disclosure decision was made by the authorities without studying its implications. It added that in line with insurance industry practices, the customer is not informed of the rate of commission, and therefore its value should not be disclosed in the insurance policy.