The Egyptian Financial Supervisory Authority has welcomed the amendment of the executive regulations for the law of private insurance funds, which was issued by the Investment Minister.
The authority has been calling for the amendment for 40 years. The number of private insurance funds exceeds 600, with annual contributions of up to LE5 billion and money reserves of up to LE40 billion, serving 4.5 million members.
The amendments include adding articles on the governance of private insurance funds and the organization of the terms of reference of the board of directors, in light of the principles of the International Organization of Pension Supervisors.
Sherif Samy, head of the Egyptian Financial Supervisory Authority, said the amendments might include appointing two members with expertise in the areas of investment or insurance to the board of directors, assigning the management of the private insurance funds to companies specialized in the management of financial paper portfolios and securities and amending the areas of investment of the funds to avoid exposing them to high risk.
Edited translation from Al-Masry Al-Youm