Unified Insurance Law Approved in Egypt
After several years of preparation, the unified insurance law project was approved on May 20, 2024, by the Egyptian government, according to Atlas magazine. This new regulation, awaited since 2018, will come into effect after its publication in the official gazette, marking a major turning point for the insurance sector in Egypt.
The main objective of this reform is to modernize the insurance sector and increase its transparency. The Egyptian government hopes to strengthen consumer and investor confidence in this key sector of the economy.
Key Provisions of the New Law
Several significant measures are introduced by this law:
Increase in Minimum Capital Requirement for Insurers
The minimum capital requirement for insurers will increase from 60 million EGP (approximately 1.9 million USD) to 250 million EGP (approximately 8.1 million USD). This increase aims to ensure the financial solidity of insurance companies and protect policyholders.
Development of a Natural Disaster Insurance Policy
A new insurance policy will cover natural disasters, including floods and earthquakes. This measure is crucial for better protecting lives and properties from growing environmental risks.
Introduction of New Mandatory Insurance Categories
The law introduces new categories of mandatory insurance, expanding coverage and enhancing security for individuals and businesses in various fields.
Expected Impact
These reforms are expected to have a positive impact on the insurance sector in Egypt. By increasing capital requirements, the government aims to ensure that only financially solid companies operate in the market, which should increase stability and reliability in the sector. Furthermore, the introduction of coverage for natural disasters responds to a growing need for protection against climate and geological risks.