"Financial Control": Formation of a Committee to Develop a Unified Model for the Articles of Association of Insurance Complexes
Cairo - Nahnah Imam
Dr. Islam Azzam, Chairman of the Financial Regulatory Authority (FRA), issued a decision establishing a committee to prepare a unified model articles of association for insurance pools, in accordance with the provisions of the Unified Insurance Law No. (155) of 2024, while taking into account the technical and specialized nature of each pool’s activities.
The decision stipulates the formation of the committee, chaired by Dr. Taref Saif, Vice Chairman of the Authority, with Advisor Rida Abdulmoeity, Senior Advisor to the Chairman, serving as Vice Chair, and comprising several senior officials and executives of the Authority. The committee chair is empowered to invite any specialists and experts deemed necessary to attend meetings and assist in performing tasks, without having a voting right in deliberations.
The decision outlines 11 key mandates for the committee, the most prominent of which include: studying and analyzing the articles of association currently in force for existing insurance pools; identifying similarities and differences among them; determining topics that require harmonization across pools; and preparing guiding rules and controls related to governance, management, disclosure, and conflicts of interest.
The committee is also tasked with establishing controls regarding pool membership, as well as the rights and obligations of members; developing a guiding framework for forming the pool’s general assembly and board of directors, defining the competencies of each body, and setting conditions for holding positions; and formulating controls for the financial system, investment management, internal control, and risk management.
The committee’s mandates also include defining the framework and competencies of specialized committees within pools, particularly audit, risk, and investment committees; establishing rules governing dispute resolution and amendments to the pool’s articles of association; preparing the draft unified model articles of association; drafting the necessary regulatory decision(s) for the adoption and implementation of the unified model; and proposing a suitable mechanism and timeframe for aligning existing insurance pools with the controls of the unified model.
It is worth noting that there are currently five insurance pools active in the Egyptian market: the Egyptian Nuclear Risures Pool, the Pool for Insurance against Railway and Metro Train Accident Risks, the Egyptian Pool for Civil Liability Insurance against Construction Works Risks, the Mandatory Insurance Pool for Civil Liability Arising from Rapid Transport Vehicle Accidents, and the Egyptian Pool for Outbound Travel Insurance.
