Towards an increase in the minimum capital of Egyptian insurers and reinsurers

The new insurance bill in Egypt proposes to increase the minimum capital of life and non-life insurers by 150%, from 60 million EGP (3.3 million USD) to 150 million EGP (8.4 million USD).

The minimum capital of non life insurers covering oil and aviation risks will be 300 million EGP (16.7 million USD). The minimum capital of reinsurers is set at 500 million EGP (27.9 million USD).

The implementation of a takaful insurance regulation and the introduction of compulsory motor insurance through the creation of a specialized insurance pool for this purpose, are included in the provisions of this draft.

With the introduction of the new amendments, health care companies will be controlled by the Financial Regulatory Authority (FRA). The latter will also set the creation rules and the conditions governing these companies' activities.

The bill, proposed to the Egyptian Insurance Federation (IFE) by FRA, will be presented at the beginning of 2019 to the various actors operating in the insurance sector in Egypt.