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New insurance firms are required to operate in no more than 6 months

New insurance firms are required to operate in no more than 6 months

Cairo: The board of the Egyptian Financial Regulatory Authority (FRA) is to take a decision to commit insurance firms that will be licensed to undertake insurance activity in a period of no more than 6 months. If the period expires, the insurance firm’s license shall be revoked.

It is known that insurance control and oversight act does not address the situation of licensed companies, which have not undertaken insurance activity. The act regulated only firms that obtained initial licenses.

The deputy chairman of FRA Reda Abdel Moaty said that the decision to be issued aims to control insurance market through obliging new players to undertake activity once license has been obtained in a period of no more than 6 months.

In statements to Al Mal newspaper, Abdel Moaty said that the new decision might allow granting a further period in case of not being committed to the first period, adding that extending the new period depends on a study, which is currently being conducted.

The vice chairman of FRA pointed out that the board’s decision, which will be issued in the next few days, would not be retroactive, but would be applicable to new players.

Source: Al-Mal Newspaper 

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