Egyptian regulator calls insurance brokers to order

The Egyptian Financial Regulatory Authority (FRA) has issued a ruling prohibiting insurance brokers from collecting fees, insurance premiums or other payments from policyholders. Brokers must also return any premiums collected and placed in their bank accounts.

This decision does not include payments made using payment tools provided by insurance companies, or payments made by non-cash means, such as cheques issued by customers to the insurance company.

Premium payments to intermediaries' bank accounts are also prohibited.

To ensure the proper implementation of these directives, brokers are required to provide customers who make their own premium payments with the insurance company's bank details.

This call to order came in response to a number of complaints from customers who had paid their premiums to intermediaries, only to find themselves without coverage following a loss due to non-payment of premiums.