On September 18, 2023, the Egyptian Financial Regulatory Authority (the "FRA") issued Decree No. 152 of 2023 (the "Decree"), on the requirements of insurance companies and cooperative insurance societies (the "Company" or "Companies") with regard to pricing insurance policies.
In addition to the obligations stated in Law No. 10 of 1981 on the supervision and regulation of insurance, the Decree stipulates further specific commitments on the Companies, which include, inter alia, preparing a study on technical and actuarial foundations that constitute the basis of the pricing and indicative prices proposed for each insurance branch and the business outcome experience for the past five years, provided that such study is certified by the actuary and the Company's competent authorities. For property and liability insurance branches for ship hulls, aviation, oil and engineering industries, submitting the technical foundations pricing policies is sufficient. Compulsory insurances with fixed prices are exempt from the requirement of preparing such study.
The studies indicated in the Decree shall be certified by the
Company's competent authority or its general assembly and
submitted to the FRA within one month from the date of commencement
of the financial year. The Companies shall then fulfill the
observations of the FRA, if any, within the timeframe specified by
the FRA.
The Companies are also required to comply with the stipulated
requirements with respect to the current financial year by
submitting the required studies within four months from the
effective date of the Decree.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
