WORLD TRADE
ORGANIZATIONS/C/N/116
31 March 2000
(00-1327)
Council for Trade in Services Original:  English
NOTIFICATION PURSUANT TO ARTICLE III.3 OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES
The following notification has been received from the delegation of the Arab Republic of
Egypt.
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1. Member notifying:
Egypt
2. Notification under:
Article III, paragraph 3, of the General Agreement on Trade in Services.
3. Date of entry into force:
June 1995
Duration
Indefinite
4. Agency responsible for implementation  and enforcement of the measures:
Egyptian Insurance Supervisory Authority
5. Description of the measures:
A. Legislation related to supervision:
(1) Issuing the Law No. 91/1995 amending the law No. 10/1981 and its executive
regulations to cope with the economical and international changes in the insurance
industry and modern understanding for the role of supervisory authority.
- Law No. 91/1995 stipulates:
• The capital required for any insurance or reinsurance company at least is
L.E 30m. provided that half must be paid on establishment.S/C/N/116
Page 2
• Foreign capital equity is permitted up to 49% of an insurance company's
capital (has been amended by Law No. 156 of 1998 as mentionedhereinafter).
• Separating between classes of Non-Life business and Life Assurances.
• Founders of an insurance and reinsurance company must apply at first an
application form to obtain an initial approval of the company's incorporation.
• After approval founders have to take the procedures of company's
incorporation according to the provisions of the pertaining laws.
• Increasing the solvency margin for Pr operty & Liability insurance to 20% of
the net premiums, or 25% of the net incurred claims of the previous year,
whichever is the greater.
For Personal Insurance and Capital Redemption Funds the assets should
exceed the liabilities at any time by the following ratios:
(a) equal to 0.3% of the exposure funds of insurance contracts in force
including reinsurance;
(b) equal to 4% of the mathematical reserves including reinsurance.
• The board of directors of the insurance company must have two experienced
members in the insurance activities provided that one of them is responsibleof the executive management and have the Egyptian nationality (has been
amended by Law No. 156 of 1998 as mentioned hereinafter).
(2) Ministerial Decree No. 97 of 1998 defining the quarterly financial reports and the
required analysis data
(3) Ministerial Decree No. 100/1998 determining the periodical returns (3 months).(4) Law No. 156 of 1998 to cope with the curren t stage of liberalization and privatization
the opening for private participation in the capital of insurance and reinsurance
companies belonging to the public sector, the law also organizing the terms and
qualifications needed in the modern management for companies operating in themarket.
(5) Ministerial Decree No. 356 of 1998 amending some articles of the Executive
Regulations, according to Law No. 156 hereinabove to ensure the following:
* Submitting documents to declare that relevant managers for underwriting,
claims Reinsurance and Investments having qualifications and experience
pertaining their activities;
* Submitting documents declaring that two of the board of directors having
experience in insurance area and one of them nominated as managing director
not necessary to be Egyptian Nationality;
* Investors should go about notifying the regulator of the intention of buying
the shares ranging (from 5%-10%).S/C/N/116
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* Investors should get permission from the Prime Minister in case of buying
more than 10%.
(6) Ministerial Decree No. 45/1999 indenting to address the problems of claimants relies
and procedures of dealing with settlements and deadline of claims and disputesregarding the policy holders and Third parties pertaining the insurance policies.
(7) Ministerial Decree No. 105/1999 for organizing reinsurance legal cessions to Egypt.(8) Issuing other decisions organizing the insurance activities:
− Decision for defining the items of assets and liabilities of insurance and
reinsurance companies in order to measure the solvency of insurance
companies.
− Decision defining the shares ownership percentages of shares for insurance
and reinsurance companies (30% instead of 20%).
− The rules organizing the transactions of intermediaries profession.
(B) Legislations related to insurance activity
• Sharing with Ministry of Housing and Construction in issuing the ministerial
decree for the rules organizing the professional liability for engineers andcontractors.
• Preparing studies for issuing legislatio ns for TPL compulsory insurance for
fire, trains and ships accidents for the protection of third parties.
• Preparing a draft law for covering the fire brigade, against accidents during
their duties.
• The authority has been revised the code of ethics concerning insurance and
reinsurance companies.
6. Members specifically affected, if any:
None
7. The texts are available from:
Egyptian Insurance Supervisory Authority
Fax:  57 58 645
email: eisa@SoFicom.Com.eg
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