EFSA - Egyptian Financial Supervisory Authority

03/25/2020 | Press release | Archived content

Non-payment risks insurance policyholders join the Authority's initiative: FRA?s initiative covers micro, small, and medium enterprises (MSMEs) and grants them an additional[...]

• Dr. Omran: Micro, small, and medium enterprises (MSMEs) joined the Authority's initiative to postpone the collection of their insurance premiums for a period of six months

Dr. Mohammed Omran, FRA's Chairman announced that Non-payment risks insurance policyholders join the Authority's initiative and granting them an additional six months to pay insurance premiums other than what was stated in their insurance policies. So that the collection of their insurance premiums is postponed from the beginning of the current month to the end of next September with no delay fines, interest or any other financial burden. This comes in terms of facilitating insurance companies' clients in line with the Egyptian state's initiatives to contain the economic repercussions of the precautionary measures taken by the Egyptian state to confront and contain the effects of Coronavirus.

FRA's Chairman said that FRA formed a working group to follow up impacts of Coronavirus on various non-banking financial activities, including the insurance activity. This working group is following up and evaluating the general situation of insurance companies clients and considered expanding the Authority's initiative to include Micro, small, and medium enterprises (MSMEs) and all economic activities related to this sector so as to grant them stability , ensure the validity of their insurance policies , take advantage of these insurance policies and compensate them if the risks insured against them occur.

The Authority had previously announced an initiative to give five million customers of insurance companies licensed in the Egyptian market an additional payment deadline for individual life insurance policies, medical and car insurance policies, corporate insurance policies (group life and property insurance). FRA's initiative urged insurance companies' clients to use e- payment methods available in insurance companies. It urged insurance companies to adhere to compensating their clients in the case of accidents as soon as possible through various payment channels.

It is worth noting that FRA's BOD decided at its last meeting to offer 250 million pounds from FRA's surpluses, in support of the efforts made by the state to alleviate sufferings of needy groups which are extremely affected by the economic impacts of Coronavirus.