A new epidemic followed by a relative increase in the inflation index and a candidate for escalating according to analysts, and the result is affected by the sectors of the economy and in the heart, including insurance, which prompted some insurance companies to use price competition as a tool- although it is justified in form, but it is not consistent with the subscription controls in essence- a desire to collect the largest outcome ofThe premiums to benefit from the returns of their investment on the one hand, and to compensate for the loss of artistic activity or the deficit in the insurance subscription on the other hand..
In a related context, global return companies began to exert pressure on the direct insurance market.
The image may seem from the pessimistic point of view, and what is reported is that from the womb of the pain, hope comes out just slogans that dwell in wounds and do not treat them, because they are narrowed, and the owners of this pessimistic school did not realize that the more the rings of distress intensified, the more they are left, and if they think they will not be released.
Counselor Reda Abdel -Moaty, Vice -President of the Authority for Financial Supervision, confirmed - in an expanded dialogue - that there are serious and real attempts that are currently taking place to establish a new reinsurance company, with an Egyptian Arab capital, in which insurance companies from the Egyptian market and a number of Arab and Gulf insurance companies will be contributedA center for the operations of this company, which will be a supporter of the Egyptian and Arab market, will give him the kiss of life at times, and have mercy on him from the pressure that you may be exposed to from global return companies.
The dialogue with "Abdel -Moaty" touched on a number of files in an attempt to answer questions concerned with many, such as the role of the authority in controlling the price rivalry index?And the new legislation and its location from the growth equation?And its impact on companies and customers?And the philosophy of the role of the authority as a supervisory device, and as a judgment between insurance companies and the rights of the documentation holders?Not to mention questions related to the procedures that are currently affiliated with the market processing before applying the insurance bill upon its issuance?As well as growth rates in 2022 and their causes?And other files and other questions.
And to the text of the dialogue: -
Al -Mal: It is not afraid for anyone that there are negative effects that wave on the horizon on the insurance market due to the Korona pandemic and the increase in the inflation rate, so how does the authority deal as a control device to confront these effects?
Abdel -Moaty: Whoever denies that there are negative effects from the Korona pandemic will be either heavy or ignorant, and these effects affected all the economies of the world and did not exclude anyone, but the Egyptian economy was and is still more armed so that it absorbed these effects to reduce their pace in a way that does not lead to a defect in the market.
The Egyptian state, with all its devices and institutions, works to reduce the virus economically, and financial control as one of the state institutions, and is responsible for an important and vital sector of insurance, its role to tame the risks and adapt it to alleviate its effects, so it took a number of measures and measures that prepare the climate for growth, and at the same time support the marketIt provides the largest area of the umbrella of protection for customers, whether current or targeted, by following the growth policy or «Injility Growth».
Study of clients to increase the amounts of asset insurance to absorb the effects of inflation
"Money": What is meant by injecting "Injility Growth" and how can it be translated and procedures in practice?
Abdel -Moati: Growth injections mean the measures and measures taken to maintain growth rates and increase them while absorbing the effects of economic crises, and if we translate that in practice it can be said that the Egyptian insurance market is like other markets that were affected by the Koruna and have fears of the high rate of inflation, and at the same time financial controlIt has specific goals, which is to maintain the cohesion of the market, and support it with the necessary measures to protect it and protect its workers and those dealing with it..
Among the measures that took the decision of the Head of Financial Supervision No. 698 of 2021 to establish the Egyptian groups to secure travel abroad, which manages the travel insurance branch on passports issued by the Ministry of Interior, on behalf of the members of the group, to provide insurance coverage for each Egyptian passport holder, who are23 million individuals.
This group achieved two goals, the first is that it contributed to increasing the outcome of the direct premiums in traveling from 60 million pounds to one billion pounds annually, which means the expansion of the market lung, and the second goal is to provide the protection umbrella for each passport holder in exchange for paying a small amount and providing a protection umbrella for him in an amountInsurance up to 30 thousand euros.
He was to point out that financial oversight did not waitIt has, or its inclusion in insurance coverage, within the framework of the state’s policy of financial inclusion and its strategy for the insurance market that reflects its desire to in line with this strategy with a similar one that is the insurance inclusion..
Financial oversight was not satisfied with issuing a decision to establish a travel group, to cover each passport owner, but rather extended protection for travelers abroad, and covered them with the same travel document issued to passports owners, which is the insurance policy of Egyptians working abroad, in which a cooperation protocol was concluded between the Egyptian Insurance Federation and the MinistryMigration.
The amount of the document insurance - that is, the compensation that the beneficiary will spend - is 100 thousand pounds, in exchange for paying 1 per thousand of the insurance amount as an annual installment, equivalent to 100 pounds, and it will be distributed or issued with work permits "optional", and cover the risk of death with an accident and the transfer of the body,This document came into effect last January.
The "Travel Complex" raises the outcome of the premiums of this type by 1700 %
"Money": What is the philosophy of this document?
Abdel -Moaty: First, it is a type of insurance umbrella that the authority seeks to provide for all Egyptians at home and abroad, and the second is that this document covers the risk of death in the accident and transportation of the bodies, and before it was provided by the Egyptian market for Egyptian workers abroad, they were resorting to insurance companies in the country thatThey work in it to issue this document, especially covering the costs of transporting the body, but after saving it from the Egyptian market and at a lower cost of insurance companies in foreign markets, the Egyptian worker abroad can obtain and benefit from its advantages, which bear the travel insurance group, the costs of transporting the body, in addition to spending the remainder ofThe amount of the claim or compensation for the heirs of Al -Masry died abroad in an accident.
Al -Mal: What is the way to issue a travel insurance policy for workers abroad?
Abdel-Moaty: Through the website of the Internet Travel Security Collarant, it is also extracted with work permits that are renewed annually from the scattering of the work permits outlets- which are optional- in exchange for paying 100 pounds annually.
Launching an electronic platform to market a travel document for workers abroad
I would like to note that a specialized electronic platform will be launched to market the travel insurance policy for workers abroad soon, and the amount of insurance or compensation will reach 100 thousand pounds, and the dangers of death are covered with an accident and the costs of transporting the body, provided that the heirs of the deceased- may God be able- obtain the remaining amountCompensation after deducting the costs of transferring the body, meaning that if the costs of transporting the body are 20 thousand pounds, the heirs will receive another 80,000.
The number of beneficiaries of the Gulf travel document reaches 6 million
Al -Mal: How many beneficiaries of the travel insurance policy for workers abroad?
اقرأ أيضا«قطاع التأمين» في 7 منظمات دولية عبر عضوية الرقابة الماليةAbdel -Moati: The initial study indicated that the number of Egyptians working abroad, specifically in the Gulf countries, ranges between 5 to 6 million.
"Money": This means that the marketing and issuance of the document will start in the Gulf countries?
Abdel -Moati: On the contrary, marketing will be made from the first moment, issuance, and allowing it to be obtained via the Internet for all Egyptians working in all countries of the world, but the initial study is intended to know the number of workers in the Gulf countries, and this does not mean that it is limited to marketing and issuing them, so the Egyptians are equal, whether workers in the Gulf countries orAny country in the world, the state is responsible for them, and the travel document is evidence of the Egyptian state's interest in its children from the far world to the below.
"Money": What is the philosophy of the document and the extension of the umbrella for workers abroad, especially since the first references mean that most of the goal of financial control is not only to protect and develop the insurance market and protect corporate customers but rather exceeded any interest in the Egyptians crossing the border?
Abdel -Moati: Financial oversight is one of the state institutions, and the Egyptian state led by President Abdel Fattah El -Sisi not only give signs of their interest in its children, both at home and abroad, but these signs are translated into actions on the ground, which is a general policy of the state and a year of the president's resignation and the rest of the state institutions since 2014.
I mean more than the poetry of poetry, financial control when it supports the extension of the insurance umbrella for Egyptians abroad, two things will be achieved, the first is to pay attention to these Egyptians, and then this interest will be reflected on their families abroad, if God could not expose this Egyptian to his makrInsurance companies will pay compensation to them under the document.
As for the second matter, it has a relationship that the increase in insurance premiums will be translated in the form of market growth, and thus the increase in its lungs and the provision of new job opportunities, and the increase in investments, whether invested in fixed debt tools and deposits in banks, which the state re -invests in its projects, not to mention that all these efforts will increase the contributionInsurance in the total national product.
This means that the extension of insurance protection for any Egyptian at home or abroad reflects the principle of Platonia by seeking to protect the Egyptians, and the principle of practically by translating this Platonic into globalization or a practical reality and benefit for the Egyptians and the state, unlike the economic dimension, which is to limit the leakage of installments indirectly.
A study of providing an insurance umbrella for Egyptians travelers through employment joining companies
Al -Mal: Do you study financial oversight to extend the insurance umbrella for other Egyptians?
Abdel -Moati: We are currently studying the provision of an insurance umbrella for Egyptian workers that travel through employment companies, this employment in the first 6 months of work that has obsession or fears of not continuing their work, not to mention that in accordance with their work contracts and international laws, they will be their first 6 months inWork is a test period and these companies may be dispensed with.
Here, the financial oversight of this obsession and those concerns, and you will address it by extending the umbrella of insurance protection for them, so that those who return or end their work during the first six months of his travel, with a specific financial amount, are now determined, as well as determining the amount of compensation itself.
"Money": Will return from abroad or end the work are common, meaning return for any reason?
Abdel -Moaty: The exchange of compensation amount for loss of work will be conditional due to a compulsive force, there is no income for the Egyptian worker traveling through employment companies entered into it, and the philosophy of this coverage or the extension of protection is to provide a protective umbrella for the worker until he finds what helps him to start a new life in the event that God appreciates his work.In the first six months of his travel as a result of a compulsive cause.
Al -Mal: Will financial oversight in coordination with any of the state institutions regarding this coverage?
Abdel -Moaty: Coordination will be with the Ministry of Manpower and the Union of Egyptian Workers Abroad, so that the employment company is a party or an intermediary to market or provide the document to Egyptian travelers through it to work abroad.
"Money": And when will this step be activated?
Abdul -Moati: In the first half of the current year.
Al -Mal: Will it be supported by the travel insurance group?
Abdel -Moati: Of course, it provides three interconnected advantages, the first is that the beneficiary is pregnant with a passport and thus will benefit from the travel document, and the second is that the companies bear compensation for his heirs if he dies abroad in an accident, whether he is a worker, a student or an Egyptian tourist abroad, and the third advantage is the benefit of the EgyptiansWorkers abroad and travelers via employment companies from the advantage of compensation in the event of completing the work for a compulsive reason.
All of these advantages will make the traveler to work through employment companies reassuring compared to the former, because of his travel without a cover that protects him from the risks he faces, the most important of which is, of course, he lost work in the first period for a reason outside his will.
"Money": Are there procedures for establishing or establishing new complexes, especially as they involve two advantages, the first is to provide the insurance umbrella for the largest possible number, and the second, to reduce negative price practices, especially since the state cannot put a minimum or maximum pricing so that it does not contradict the competition law?.
Abdel -Moati: First, the basic principle is that there is a price competition, according to the law, this is a point, and the second is that compulsory insurance is naturally priced in advance in accordance with the law, and the commission determines this price for a public interest as in compulsory insurance on cars, because some coverage can not be left for this competition.
"Financial Control" has sufficient tools to control price competition
Al -Mal: I am not talking about compulsory insurance, but about other insurance, in which the margin of price competition is greater than the rules of technical subscription, so can financial control in coordination with the Insurance Union resort to the establishment of complexes of these risks in order to control price competition, to protect the insurance companies evenThe results of her artistic work do not turn on the negative, and then this will affect the efficiency of the service provided to customers or the documentation holders, which is the main goal of financial control?
Abdel -Moati: There are many means to control price competition, not among them, and according to the precedents, insurance complexes were created for compulsory risks such as travel and compulsion, this is a point.
The second point is that the creation of a group to control a price practice in notifications is not compulsory that violates the principle of competition itself, and there is a law for competition and non -monopolistic practices.
But this does not mean that this series has no treatment or end. Rather.
But more importantly, a goal or as a result of price competition is slowing down or circumventing the lack of compensation to customers, and here comes the role of the authority, not to adopt any new products for them- that is, for companies- in addition to verifying the fair price and reviewing actuarial studies, which are all things according toFor the law and powers owned by the authority in accordance with this law.
Reducing prices may be seduced by the customer at the beginning, but its results are catastrophic on the industry
"Money": Do you not agree with me that the term or definition of price competition may seem rubber and that there is no definition of the disciplined pricing index, especially with the different financial solvency, experience of subscribers and the experiences of insurance companies, not to mention their investments and the target profit index and from any channel?
Abdel -Moati: It is not true that there is no disciplined pricing index, so the criteria of subscription are one, but the difference in application and practice, according to the rules of each company and its subscription policy, its consequences, etc., but the most important question, can this deformation be addressed?Of course, yes by reviewing the results and decisive intervention at the right time.
We will not allow the panting behind the market share at the expense of business results in order to preserve the documentation campaign
Al -Mal: Financial Supervision is a ruling and a lawyer, I mean a lawyer for customers, and a ruling between them and insurance companies, and at the same time it is a shepherd and a surgeon on the insurance market, and from that let me ask you, is not the reduction of prices through price practices that customers benefit from which the censorship represents welding from them?But at the same time, there are effects on the results of the work of insurance companies as a result of these practices, which harms the companies that represent the authority and a sponsor on them.
اقرأ أيضاأليانز للتأمين تدرس تجديد شراكتها مع اليونيسيف لمدة 3 سنواتAbdul -Moati: Who said that the price reduction will benefit the customer?The customer may resort to and temporarily seduce him, but what is the result?This is the question, and the answer to it is simply that the harmful competition means lack of commitment to pay the compensation, and therefore the customer will lose his confidence in the industry, and then the insurance companies will be affected financially and morally, which affects the whole market indirectly and sometimes directly.
So, unimisticated or non -disciplined price competition will put the whole market in a painful reality and a dark future, which is not and will not allow financial oversight, to protect customers and insurance companies themselves.
We must not lose sight of the disadvantages of price competition, and the dependence of some companies on their balance of investments and huge financial sheets, will be submitted to the exit of small entities or players who do not have these capabilities, and therefore the entities that led the market in the price competition will return to monopolizing the market after taking out their competitors, and fromThen compensate for its previous losses by increasing prices in a way that may be exaggerated.
Financial oversight is wisely dealt with with this file, so do not leave the price competition for their districts or without control.
"Money": We all know the disadvantages of price competition and their results, but at the same time there are pressure that may be exerted on the executive departments to achieve a specific number of installments and thus the executive management will pressure the officials of the issuance by expanding the publications and accepting any risks, and at the same time you will pressure the officials of the compensation fileWith scarcity or miserliness in the disbursement of compensation?
Abdel -Moati: Your question is logical and expresses real concerns, and I will not describe it as the clients on embers, but the most important thing is how will this dialectic be addressed with the provision of savings of technical profits without drifting to price competition?
The answer is simple, which is that the basic principle in the topic is that there is a behavior or a method of work, and there is in this way, I mean the price competition necessarily there will be an actor for it, and financial control works to address the issue from its roots by training executive departments as well as officialsBad on the industry, as well as the insurance companies themselves other than the certain impact on customers.
The most important thing is that there are proactive steps through conducting interviews with the candidates to take over the executive management as well as those in charge of some technical departments, to clarify the importance of proper subscription and the danger of deviation from it, but more than that is provided for technical and moral support to companies so that they do not deviate from the swamp of negative speculation, and to ensure the commitment of corporate departmentsWith the periodic review of it and ensuring the results and pride of the end of the fiscal year.
It must be noted here, that any pressure exerted from the contributors to the executive departments is a desire to collect the largest outcome of the installments regardlessAnd to be met by technical allocations, and any huge compensation may lead to the erosion of the financial solvency of the insurance company, and it is not possible under any circumstance that the insurance company fails to pay for the payment of compensation as long as its conditions stipulated in the document are met.
From all this, we reach the conclusion that any defect in the subscriber policy will lead to the collapse of the entire insurance company, and the financial control will not allow this under any circumstance and will use all its technical and supervisory tools to protect the documents and insurance companies themselves..
Insurance premiums jump 46 billion pounds in 2021 and the growth rate is 15 %
"Money": Return to start, what are your expectations for the current public insurance market?And his causes?
Abdel -Moati: It will be much better than 2021 and the precedent, for reasons related first to the new insurance law, which is an injection of growth in the market, and for all the initial estimates indicates that the total installments exceeded 46 billion pounds last June for the fiscal year 2020/2021 with a growth of %15 which is an important and detector number, and it expresses the arms and cohesion of the insurance market, the strength of its control apparatus, the efficiency of its organizational entity, the desire of all companies and professions related to the activity to maintain the sustainability of growth indicators.
As for the causes of growth, it lies in the speedy financial control by pumping new types of insurance and the establishment of complexes, a policy that has been followed by the content of the growth injectAnnually to one billion pounds, any increase and growth of this outcome with a touches of 1700 %, not to mention the compulsory car insurance group, which contributed to eliminating fraud and forgery, and that life insurance succeeded in achieving important savings of growth rates.
In 2022, after the issuance of the insurance law and the types of insurance that will be applied in a mandatory manner, the insurance activity will be a growing growth for the national economy, and its contributions will increase in the gross national product, in addition to increasing its penetration rates between the different segments of society.
Al -Mal: Insurance companies said that there are negative effects of inflation resulting from Corona and will focus on increasing the compensation index as a result of increasing the prices of services. So may the authority issues advice to customers to increase the amounts of asset insurance for them to protect them similar to the same procedure that it did after the editing of the exchange rate in November 2016?
Abdel -Moati: We are working on studying this now, but the matter will also remain dependent on the size of the effect and the amount of inflation, especially since it is unknown or fully visible until now..
Reconsidering the registration controls of reinsurance entities in the mandatory list
Al -Mal: Return companies are putting pressure on the Egyptian insurance market like others as a result of incurring huge losses not because of the market results, but due to the global risks, as well as the impact of crises on some of the replacing companies themselves, so does the commission reconsider the requirements for the registration of the insurance reinforcements in the annual list allowed to dealwith her?
Abdel -Moati: We are already studying a review of regulations for registration companies in the mandatory list, due to the progress of the previously placed requirements, not to mention the dramatic changes in the size and quality of the risks, as well.
Al -Mal: Increasing pressure from global insurance leaders on direct markets, not because of the poor results in some markets, including Egypt, but because of the huge losses incurred by global return companies as a result of geopolitical risks, and at the same time the Egyptian insurance market has become a real need for an Egyptian entity specializing inInsurance is an alternative to the Egyptian reinsurance that was incorporated in 2007 in Egypt for insurance. Isn't it time for this entity?
اقرأ أيضاأحمد زكى عابدين يستعرض تفاصيل تطور العاصمة الإدارية أمام جمعية رجال الأعمالEstablishing an Egyptian Arab Insurance and Cairo company as a center for operations
Abdel -Moati: There are already in votation efforts and actual studies to establish a reinsurance company in Egyptian Arab capital. Cairo will be a major center for the new entity.
"Money": How much is the capital of the new entity and the nature of the property structures?
Abdel -Moaty: The paid capital will not be less than one billion pounds in accordance with the new insurance law, and the new entity will contribute to Egyptian and other insurance companies from Arab countries, and it will be similar to the African Red Retamentation Company.
And if the thing is mentioned, I would like to make it clear that the studies that are conducted and communicating with a number of major entities in the Arab markets agreed that Egypt is the center of operations «Hub» regardless of the percentage of the contribution of Egyptian companies to the royal structure.
The aim of this company is to be a supporter and supporter of the Arab insurance markets, as well as competition for the repetition cake in the global market, and this company after its establishment will affect the controls related to dealing with global insurance beneficiaries, so that the dealing is limited to major entities that have capabilities that are compatible with the new conditions,Because it is unlikely that there will be pressure on the Egyptian and Arab insurance market from the reinsurians because of the presence of a strong Arab alternative and will have an impact on the repetition map.
Forming committees to set the executive controls of the brokers and medical companies
Al -Mal: A return to the new insurance bill.
Abdel -Moati: “Financial Supervision” has taken proactive steps, aiming to implement the law upon its issuance, and that is why the Supreme Insurance Consultative Committee, which is emanating from the Board of Directors of the General Authority for Financial Supervision, started studying the executive controls of the new insurance law, so that these controls are applied immediately after the law is issued,Especially since the new legislation will not have an executive regulation, but executive controls, because the draft law states that the authority’s board of directors has powers to set details, controls and rules regulating the market, provided that these controls are issued by a decision of the authority’s board of directors, according to the new law.
Al -Mal: The Supreme Insurance Consulting Committee is working on setting the executive controls of the Unified Insurance Law?
Abdel -Moaty: The Supreme Consultative Committee, which is the sub -committees, including the Medical Insurance Committee, headed by Dr. Ihab Abu Al -Majd,».
Al -Mal: What about the Insurance Brokel Union, are there measures that are carried out on the ground in this regard in the number of measures currently taken to prepare the soil before the implementation of the unified insurance law as soon as it is issued?
Abdel -Moati: The law guarantees articles to establish unions for the professions associated with insurance, including mediators, whether legal or natural personalities, as well as workers in the productive apparatus of insurance companies, and therefore there must be a founding committee for this union to set the controls and executive regulations that regulate its work.
Since financial oversight is considered proactive in order to activate the law immediately upon its issuance and not to take time to form the committees that will set the controls and executive regulations of the union as well as the executive controls of the law in general, so a founding committee for the Union of Insurance Makers was formed.
Al -Mal: Will the committee that was agreed upon its members will be appointed by a decision of the Board of Directors of the Financial Supervision?
Abdel -Moati: A decision will be issued to form the committee, provided that the controls and executive regulations will be established, to determine the contributions, open headquarters, prepare records, registration conditions, and other arrangements, so that as soon as they finish setting all arrangements, then elections for the Board of Directors of the Insurance Brokers Union will be held.
In sum.
"Money": Will the membership in the intermediaries be mandatory?
Abdel -Moati: Certainly it will be mandatory, for reasons that organizing a certain profession that follows the necessity of lighting in its membership in a mandatory manner so that the union can control its role and put the frameworks of dealing in a way that serves the insurance market, because the mediators union will not be a service union or provides social care, but will manage a profession like the unionAl -Masry Insurance, and whoever violates the criteria will be imposed on the penalty for it, I mean the criteria and the charter of honor that the founding committee will be set and will be adopted from financial oversight.
Al -Mal: If we move to another axis related to insurance companies, on what basis, financial supervision is evaluated insurance companies?Are the revenues of activity or total profits?
Abdel -Moati: Certainly, according to the results of the technical subscription or the returns of insurance activity, the insurance is a major activity for the insurance company.Investment is subject to the management of each insurance company.
Al -Mal: The official data issued by financial oversight indicates that there is growth in the market share of the Takaful insurance companies from direct installments, but the monthly indicators associated with the assertive installments and the dispensed compensation indicate a decrease in the outcome of these installments against the high compensation, so what is the significance of this?
Abdel -Moati: It is not possible to completely judge the Takaful insurance market according to the index of the incurable premiums and the opposite compensation, as it is subject to many considerations, including mentioning and not limited to, the efficiency of collection, the nature of the risks in which the subscription, and the policy of accepting the risks itself.
In all, as I said in advance, financial supervision establishes insurance companies according to the results of their technical work, or the surplus and deficit of insurance subscription, and it is not established based on the index of the collected installments or padded compensation.
Approval of converting the activity of Tokyo Marin Vamili from Takaful to the Commercial and changing its name to «KAF»
Al -Mal: The authority allowed the Takaful Insurance companies to change its commercial activities, according to specific controls. Are there any desire or requests from Takaful companies to transfer their business insurance activities?
Abdel -Moati: Indeed, the "Tokyo Marin Family" company to secure the Takaful life submitted a request for financial supervision to change its activity from the Takalet for commercial, and change the trade name to become "KAF" and the Board of Financial Supervision agreed to the request in principle.
5 requests to establish new companies, two of which are in "Medical"
Al -Mal: The Egyptian insurance market has become a thirst for new investments. Are there requests to establish new companies or enter new players for this generous sector with its growth opportunities?
Abdel -Moati: There are five requests of two of them to establish companies specialized in medical insurance, one of which follows the Egypt Insurance Holding Group, and the second with Egyptian Arab contributions, while the other three companies will work in life and property activities.
Al -Mal: Was the requests accepted in principle?
Abdel -Moati: The requests were submitted, but the approval of the Board of Directors in principle is related to the issuance of the new insurance law, for two reasons, the first is that the current law does not allow the establishment of companies specialized in one field such as medical insurance, and the second is that the requirements for establishing new companies in the unified law differ from the current legislationThe organizer of the activity of insurance companies, and these requirements are not limited to capital, but also exceeded the nature of the property structure and other requirements, and then immediately the issuance of the law will be studied by the five requests..