The Egyptian Insurance Supervisory Authority - TAS

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The Egyptian Insurance Supervisory Authority - TAS Powered By Docstoc
					The current status of the
  insurance sector in
         Egypt
(A)The current status of insurance sector in
  Egypt

  •   Market structure
  •   Life insurance
  •   Non-life insurance
  •   Reinsurance
  •   Investments
  •   Regulation and supervision of insurance
                    Market structure
The Egyptian Insurance Market composes of :-

•   The Supreme Council of Insurance
•   The Egyptian Insurance Supervisory Authority (EISA)
•   17 direct insurance companies, 6 of which are composite, 6 are
    non-life, 3 are transacting life insurance, one is transacting
    credit insurance for exports and one cooperative society
•   Another 2 new life insurance companies have just licensed
•   A specialized reinsurance company
•   614 Private Insurance Funds
•   The Government Insurance Fund for fidelity guarantee
•   Insurance Federation of Egypt
•   Insurance Pools
•   Cargo supervision & surveying office of Egypt
The Supreme Council of Insurance
FORMATION
Formed under the chairmanship of the Minister of Planning
and the membership of :
- The chairman of EISA and his deputy
- The Chairmen of the insurance and reinsurance companies
- A representative of the insurance funds.
- Two insurance Professors from the Egyptian Universities.
- A Chancellor from the Council of State
- A representative from
        the Public Sector Information Center.
        Ministry of Planning
        Ministry of Finance
        the trade unions organization of the insurance sector
       each of the auxiliary organs
ROLE
The Supreme Council of Insurance has the competence to
decide the general objectives of the insurance activity and to
approve the policies needed for the achievement of these
objectives.
The Egyptian Insurance Supervisory Authority
(EISA)
EISA has the competence to supervise and control the
insurance activity in Egypt whether at the establishment,
during transaction or at the termination of the business.
The Authority in particular aims at the implementation of the
following objectives :-


1- to protect the rights of insurance policyholders, the
beneficiaries and third parties.
2 - to secure the achievement of the economic and social
objectives of insurance activity and preserving the national
savings.
3 - to secure the soundness of the financial positions of the
Insurance market units, coordinating among them and
preventing any conflict between them.
4 - to participate in developing insurance awareness in the
country
5 - to strengthen the ties of co-operation and integration with
the other control and supervisory authorities at the Arab,
African, and world level.
6 - to promote the insurance professions and to contribute
effectively to the availability of the expertise.
Market Structure Table                              02/03 Figures (in L.E. Million)

   Insurance        No.   Paid-up   Shareholder’s   Policyholder’s   Total    Premium
   Companies              Capital       Fund             Fund        Assets    Income

  State Owned        3     1260         2006            7987         12003     2089
   Composite

    Private          3     110          294              720         1382       353
   Composite
Private Non-life     6     192          193              164          601       210

  Private Life       3     130          101              220          359       216

  Cooperative        1      11           13              11           35        15

     Credit          1      10           10               1           100        1

    Medical          -       -            -               -            -         0

Reinsurance state    1     425          578             1304         2537       371
     owned
      Total         18     2138         3201           10407         17017     2884


 Private Funds      614     ---          ---            11216        12193     1486



 The premium income for Egypt Re is not added to the total premium income
 The foreign participation of the paid up capital represents 12.3%
LIFE INSURANCE
                       Life Insurance Business                                                            (in L.E. 000)

                                               In Force                                    New Business
                           98/99     99/2000 2000/2001 2001/2002 2002/2003 98/99     99/2000 2000/2001 2001/2002 2002/2003

Number of Individual

policies (in thousands)        622       616        607     614      646       91         89        92        100         120

    Sums Assured :

Individual                 6709755 7479047 8549921 9883644 12300910 1745595 1850128 2221933 2535142 3590607

Group                     20123267 21988845 23185703 24620485 28149952 13675391 14053907 14648568 15053589 17654169
             Total        26833022 29467892 31735624 34504129 40450862 15420986 15904035 16870501 17588731 21244776

        Premiums :
Individual                  271867    297892     341893   402023   547999   74588      76196     93718     114324    194630
Group                       257193    301123     311874   282547   355229   152190    146598    118275     105225    160059

             Total          529060    599015     653767   684570   903228   226778    222794    211993     219549    354689



Private Funds              1103726 1262638 1352268 1453608 1486226
                         Life Assurance Sums Assured
                               (Business In Force)
In Millions of L.E.
                      20123                          23186          24620           28150
                                     21989
 18000
 16000
 14000                                                                      12301

 12000                                                       9884
 10000                                       8550
                              7479
              6710
   8000
   6000
   4000
   2000
       0
                98/99         99/2000        2000/2001       2001/2002      2002/2003



                                Individual   Group
                               Life Assurance Premiums
                                   (Business In Force)
In Millions of L.E.

                                                             1352           1454          1486
                           1104            1263

          1000


            800


            600                                                                          355
                                                                                   548
                                                                          283
                        257          301           342 312          402
            400       272         298

            200

              0
                       98/99       99/2000         2000/2001         2001/2002      2002/2003


                                      Individual    Group      Private Funds
NON-LIFE INSURANCE
                                                Direct & Net Premiums
                                                      By Class of Business


                                                                                                                           L.E.000
                                           Direct Premiums                                         Net Premiums
              Class
                            98/99     99/2000 2000/2001 2001/2002 2002/2003         98/99    99/2000 2000/2001 2001/2002 2002/2003

Fire                        297681     278735    286222    262683       319902      117356    108360    111251    79003       94694
Marine Cargo                117806      93072     93183    102251       123521       43012     38629     36957    44942       62460
Inland Transport             12789      12023     12441      13254       18542        6960      7071      8597     9265       14419

Marine Hull                  54737      52752     49980      55866       59125        7662      6201      7197     9198       12087
Aviation                     56240      77497    132409    181849       257639       19830     21121     20845    27361       37907

Accident                    172604     196595    184396    229284       247178       91415    111319    116357    148122     163408
Health                       27581      33305     37299      38437       42069        8578     15563     21280    25092       27468

Engineering                 105386     111580    106851    117125       161778        9586     13881     12764    14624       14799
Oil                          57820      63594     65619      97855      224659       12389     15157     13282    21810       40846

Motor Act                   110159     124604    128132    129552       136763       84298    103132    108381    116639     125053
Motor Comprehensive         391159     373629    350632    335070       353837      285122    293621    284980    287849     314889

              Total         1403962   1417386   1459715   1563226     1945013       686208    734055    741891    783905     908030


Government Insurance Fund     4553       4983      4904       5967           6504
                            D ire ct & Ne t Pre m ium s



In Millions of L.E.


                                                                               1945
2000

1800
                                                                 1563
1600                            1417            1460
             1404
1400

1200
                                                                                      908
1000
                      686              734                742           784
 800

 600

 400

 200

    0
             98/99             99/2000        2000/2001         2001/2002     2002/2003



                                   Direct     Net
                                                  Direct & Net Claims
                                                     By Class of Business

                                                                                                                          L.E.000
                                         Direct Claims Paid                                    Net Claims Paid
              Class
                            98/99    99/2000 2000/2001 2001/2002 2002/2003        98/99    99/2000 2000/2001 2001/2002 2002/2003

Fire                         95262     83194     69228        75437    74036       14375     17410     15634     17854       16204
Marine Cargo                 29183     36086     36043        38974    39204        7963     13482     12127     12617       14455
Inland Transport              3829      4043      4541        5325      4126        1179      1724      2752      4121        2604

Marine Hull                  32684     76841     34169        33279    44100        3840      6688      4099      4422        4398
Aviation                     14812    290784    149384    634087      450949        8980     18048     10725     14758       13696
Accident                     19721     20368     25091        31367    35508       10586     10458     20091     17364       24422
Health                       27181     32980     32106        35881    37163        8482     13347     17448     22830       25607
Engineering                  68641     52069     41347        42611    48721        4456      7265      3564      4085        5612
Oil                          39102     17885     15566        29714    28960        1940      2607      1341      3990        5850

Motor Act                   137467    149969    185291    213408      298116       99443    107679    131312     154017     222208
Motor Comprehensive         207990    225027    234020    212666      210976      146903    162286    183310     174691     182025

              Total         675872    989246    826786   1352749      1271859     308147    360994    402403     430749     517081


Government Insurance Fund       15         8       121         146          168
                                   D ir ect & Net Cla im s


In M illions of L.E.

                                     989             827             1353           1272

        800
                       676

        700


        600                                                                                517

                                                                            431
        500                                                  402
                                           361

        400                  308


        300


        200


        100


          0
                  98/99            99/2000        2000/2001        2001/2002      2002/2003




                                       D ire ct    Ne t
                                                    Loss Ratios
                                                By Class of Business


                                                                                                                       %
                                     Direct Business                                          Net Retained
              Class
                      98/99     99/2000 2000/2001 2001/2002 2002/2003         98/99     99/2000 2000/2001 2001/2002 2002/2003

Fire                     17.3       38.0     35.6       24.4           27.3       5.8       10.9     10.7      26.8      25.6

Marine Cargo             55.8       33.6     43.1       42.8       101.2         14.8       20.0     26.7      33.1      21.4
Inland Transport         33.6       44.3     78.8        6.8            2.8      23.9       51.7     93.7       7.0      10.2
Marine Hull              92.7      102.5     83.3      100.7       146.5         11.1      105.9     97.8      50.0        0.0
Aviation                  0.0    1840.1       3.7      338.5           62.2       0.0        9.7      0.0       0.0      39.9

Accident                 40.6       26.2     26.6       29.5           27.3      30.5       54.6     44.5      24.2      35.0
Health                   97.0      111.7     91.0       98.3           91.8      85.4      119.7     92.9      99.9      91.5
Engineering               0.0       14.6     61.0       26.8       128.1         45.7       53.5     26.4       4.9        0.0

Oil                       0.0       70.2     62.8       34.7           46.4      15.1       58.4     33.0       2.6      22.3
Motor Act               118.4      101.9     93.7      193.9       253.6        112.1      103.8     90.1     175.5    224.7

Motor Comprehensive      57.6       62.5     59.2       61.9           59.9      57.2       60.9     58.5      62.1      59.8

              Total      36.7      139.2     49.9       86.5           74.5      32.1       55.1     49.8      60.3      65.8
REINSURANCE
                                     Reinsurance
                                             Reinsurance Premiums
                                                By Class of Business


                                                                                                                      L.E.000

              Class                      Outward                                                Inward

                      98/99    99/2000 2000/2001 2001/2002 2002/2003      98/99       99/2000 2000/2001 2001/2002 2002/2003

Fire                  159768    155420     154494    174901      224720    19418        22751     25207      31863      56354
Marine Cargo           66033     52384     50916      52231       57207     9798         8625      9075       8535      11508
Inland Transport        4602      4615      3933       3945        4110       97            0        18          0          0

Marine Hull            48300     41960     35398      41520       43991     3978         4589      4944       4847       7007
Aviation               45029     60853     107470    185410      236654    11349         7185      7769      22096      35433

Accident               58216     64760     58531      62922       75730     4067         3730      5548       6843       8017
Health                 12784     13511     11569       9585        9962           0         0            0       0          0
Engineering            72979     78808     78392      87681      130702     2911         3467      3846       5140       7498

Oil                    43877     46853     51448      86249      173613    12282        16181     23157      32461      25983
Motor Act               2180       951      3835       2322        3710           0         0            0       0          0
Motor Comprehensive     4376      5680      4135       2771        3010     1190          951      1431       1944       2132

              Total   518144    525795     560121    709537      963409    65090        67479     80995      113729    153932
                              Retained Ratios
                              By Class of Business
                                                                            %

           Class      98/99   99/2000            2000/2001   2001/2002   2002/2003

Fire                  37.1     36.5                  36.6      28.3        27.6
Marine Cargo          34.3     38.4                  38.3      42.7        49.3

Inland Transport      49.7     53.6                  63.8      65.1        74.4
Marine Hull           12.9     11.1                  13.7      15.7        19.3
Aviation              29.9     25.3                  15.2      13.9        13.3
Accident              49.4     53.1                  55.0      61.2        63.7
Health                31.1     46.7                  57.1      64.9        64.4
Engineering            8.7     11.9                  11.4      12.1         8.4

Oil                   19.7     21.5                  19.6      19.5        17.5
Motor Act             76.5     82.8                  84.6      90.0        91.4

Motor Comprehensive   72.7     78.5                  81.0      85.9        88.9

            Total     46.7     49.6                  49.1      48.0        44.6
                                             Reinsurance Claims Paid
                                                    By Class of Business


                                                                                                                             L.E.000

              Class                      Outward                                                       Inward
                      98/99    99/2000 2000/2001 2001/2002 2002/2003         98/99       99/2000       2000/2001 2001/2002 2002/2003
Fire                   77625     65948     59103        55107       58050     13410          14102        27467     18552      30051
Marine Cargo           20717     22406     23603        26242       28040     12081           6430         6492      6700      14953
Inland Transport        1885      1869      1695         1706         1493           0             3            0      24          0
Marine Hull            30305     70842     33670        28347       43243      4889           3134         3722      3681       9278

Aviation               16506    280589     153240      637744      440645     12166          13662        17578     23716      11444
Accident                9117     11207      9636        13749         7334     2743           3109         8829      9154       5456
Health                 13225     13466     10233         8797         7781           0             0            0       0          0
Engineering            57952     17156     32637        30547       40452      1758           2150         1883      4167       3954

Oil                    37361     43460     27847        30701       32530      6743          24155        36457     37059      26127
Motor Act               1059      1934      4389         6197         5446           0             0            0       0          0
Motor Comprehensive      996      3712      3653         2182         2145      795           1645         1203      2304       1678

              Total   266747    532589     359706      841319      667159     54585          68390       103631     105357    102941
                                              Reinsurance Loss Ratios
                                                     By Class of Business

                                                                                                                            %

              Class                        Outward                                                      Inward

                      98/99     99/2000 2000/2001 2001/2002 2002/2003              98/99     99/2000 2000/2001 2001/2002 2002/2003
Fire                     34.7       57.2      57.0          34.4            34.0      50.2       38.1      93.4     72.8      45.4

Marine Cargo             76.7       36.0      55.0          43.6        132.0         45.4        0.0      54.6     47.2        0.0
Inland Transport         33.4       20.1      41.5          16.7            13.2       0.0        0.0       0.0    342.9        0.0
Marine Hull             103.1       95.2      91.2          92.4        136.3         20.8       30.4      51.4     52.9        0.0

Aviation                 14.3    2131.8       11.1         471.5            55.8       0.0        0.0       0.0     70.7      38.8

Accident                 42.0        0.0      28.8          32.0            19.0      89.2        0.0     119.8    123.0      39.8
Health                  121.8     100.7       77.7          91.4            82.9       0.0        0.0       0.0      0.0        0.0
Engineering               0.0        0.0      38.6          26.7        123.9        121.2       27.3      42.1    109.6        0.0
Oil                       0.0     167.4       88.5          90.4            61.7     131.7      566.3     338.3    271.5     197.9

Motor Act                 0.0     225.9      231.2           0.0        405.1          0.0        0.0       0.0      0.0        0.0

Motor Comprehensive       8.2       92.8      63.1          49.3        150.6          0.0        0.0     125.7    102.0      83.2

              Total      24.1     268.9       49.8         150.8            68.8       0.0       84.6     132.5    126.1      41.1
GEOGRAPHICAL DISTREBUTION OF
     OUTWARD PREMIUMS

  North
                    Arab
 America
   7%               18%

                           Africa
                            3%

                           Asia
                           6%


           Europe
            66%
INVESTMENTS
                                  Insurance Companies Investments

                                                                                              L.E.000

        Channels         98/99            99/2000       2000/2001      2001/2002         2002/2003

Government Bonds           2657683           2707986        2822475        3521347           3810864

Securities & Shares        3822691           4160143        4443919        4333246           4685175
Real Estate                  544075            582751        621654         611908            580500
Mortgage                         14236          18421          10866               126           6742

Loans to Policyholders           66600          82963          97600        116549            121611

Other Loans                      78500          65082          67091        122303            121945
Fixed Deposits             4128410           4424597        4702185        4842310           5361461

              Total       11312195          12041943       12765790       13547789          14688298
                                 Private Funds Investments

                                                                                 L.E.000

        Channels      1998             1999           2000           2001         2002

Government Bonds        3684818          4267693        4837024        6108824      6924220
Securities & Shares      281949           358275         389546         407933        376322

Real Estate              123933           139568         145126         165695        164675

Loans to Members         116088           140686         138055         185388        124809

Fixed Deposits          1914892          1996226        2491634        2913449      3139055

Other Investments            65861            88953          61851      172861        110886


              Total     6187541          6991401        8063236        9954150     10839967
                                                          Investments by Companies

                                                                                                              L.E.000
               Company                    98/99             99/2000          2000/2001       2001/2002       2002/2003

Misr                                        4792399            5029052           5425105         5862466         6274801
Al Chark                                    2271624            2428008           2558507         2647922         2822795
National                                    1417922            1499106           1504716         1585878         1657186
Suez Canal                                    230115             260847           294561          332658           350145
Mohandes                                      324003             351637           372121          423828           464059
Delta                                         287396             317242           343383          347656           369615
Pharaonic                                         78160           93418           108666          105131           121068
Arab Misr Ins. Group                              60619           73935             70993           59263           83017
Pharaonic American Life (ALICO)                   31905           57470             78440         122294           146679
Co-Operative Ins. Society                            0            11001             16190           19519           16190
Egyptian International Medical Ins. Co.              0                3244               0               0               0
Export Credit Guarantee                              0            89328             93035           93104           97434
Commercial International Life (CIL)                  0                  0           48476           58323          122698
ACE CIIC                                          67648           68448             82929                0          42885
Arab International (Non Life)                     77129           79873             91387         109548            73710
Arab International (Life)                            0                  0                0               0          31568
Royal & Sun Alliance                                 0                  0                0               0          20859
Egyptian Saudi Insurance Home                        0                  0                0               0          29194

                  Total                     9638920           10362609          11088509        11767590        12723903


Egypt Re.                                   1673274            1679334           1677281         1780199         1964395



                                           11312194           12041943          12765790        13547789        14688298
Regulation and supervision of
         insurance
Legislation


The main insurance legislation regulating the insurance market are


• Act No. 10 of 1981 for the supervision and control of insurance
in Egypt and its amendments by the Act No. 91 of 1995 and Act
No. 156 of 1998
• Act No. 54 of 1975 for the Private Insurance Funds and its
regulations
• Act No. 652 of 1955 for Motor Liability Insurance
Status as regards liberalization and
privatization

Act No. 156/1998 allows private sector entry into the capital of the
state-owned insurance and reinsurance companies
The Act also removed all restrictions on majority foreign ownership
of insurance companies
It also allows non-Egyptians to manage insurance companies based
in Egypt
It is worth to mention here that 8 companies are managed by foreign
managing directors
Status as regards Financial Sector Assessment
Program
Detailed Assessment Report on Observance of the Insurance Core
Principles and Transparency of Insurance Regulation was prepared
by a lead insurance specialist from Financial Sector Department of
the World Bank. The assessment was based on a review of the
legal framework, and focused mainly on the supervisory work of
the Egyptian Insurance Supervisory Authority.
As a result, and according to EISA’s adopted plan of enhancing the
supervision standard in an open market and increased competition,
the following new regulatory decrees have been issued : -
1. The Ministerial decree No.157 for 1999 for the issuance of the
   Accounting Measures for Insurance and Reinsurance
   companies .
2. The Ministerial decree No. 157 for 2003 amending the
   executive regulation by adding an article for setting up an
   internal control committee and applying the principles of
   corporate governance .
3. According to article (7) of law No.80 of 2002 for combating
   money laundering , the rules and measures as well as the
   executive procedures for insurance and reinsurance companies
   have been issued .
                                                        EGYPT
                   SCHEDULE OF SPECIFIC COMMITMENTS

Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons




 Insurance Services, the main criteria which the economic needs test apply are as follows:
 1.    Surplus demand to traditional classes of insurance gives new companies an opportunity of
       working without harmful competition to the market or financial positions of existing
       companies and consequently policyholders
 2.    Exhausting of 50% of the capacity of the existing companies, which is calculated on the
       basis of solvency margin, and there is a surplus demand in excess of the capacity which
       enables a new company to achieve its purposes.
 3.    Setting up of a new company leads to an increase of total retention in the market; taking
       into account the technical considerations.
 4.    The new companies shall introduce new insurance covers.
Sector or subsector       Limitations        on      market Limitations Additional
                          access                            on national commitments
                                                            treatment


1. Life, health, personal (1)   None                             (1)   None
accident                  (2)   None                             (2)   None
                          (3)   Foreign and joint venture (3)          None
                                companies are allowed only
                                to carry on business in free
                                zones, provided that their
                                activities shall be confined to
                                the transactions carried out
                                in convertible currencies.
                          •     No maximum limits required
                                on the foreign shareholding
                                in free zones
                          •     Economic needs test shall
                                apply      to     the     inland
                                commercial presence (other
                                than in free zones) according
                                to the criteria as stipulated in
                                the horizontal section.
Sector      or Limitations on market access                Limitations Additional
subsector                                                  on national commitments
                                                           treatment


               •     Relaxation of economic needs test
                    shall be in 2000 for life, health &
                    personal accident business
               •     Foreign insurance companies’
                    branches and agencies are not
                    allowed.
               •     Foreign capital equity shall not
                    exceed 49% of the total capital
                    required for the company (other
                    than in free zones) up to 31
                    December 1999.
               •     As of 1 January 2000, foreign
                    capital equity shall be up to 51% of
                    the total capital required for the
                    company (other than in free zones).
               •     Legal cessions of the total
                    transactions must be ceded to
                    Egyptian       Reinsurance       Co.
                    according to the percentages to be
Sector              or Limitations on market access                 Limitations    on Additional
subsector                                                           national          commitments
                                                                    treatment


                        •     decided by the supervisory
                              authority and 5% of the company’s
                              treaties to African Reinsurance Co.

                        (4) Qualified non-Egyptian directors are (4) A non-Egyptian
                              allowed for a five-year term and         director must
                              may be renewed.              Their       have at least
                              appointment and renewal is subject       two Egyptian
                              to the approval of the Supervisory       understudies.
                              Authority.


2. Non-life insurance   (1)   Unbound
                                                                   •     Unbound
                        (2)   None
                                                                   •     None
                        (3)   Foreign     and     joint    venture
                              companies are allowed to carry on •        None
                              business in free zones, provided
                              that their activities shall be
                              confined to the transactions carried
                              out in convertible currencies.
Sector      or Limitations on market access                     Limitations Additional
subsector                                                       on national commitments
                                                                treatment


               •    No maximum limits required on the
                    foreign shareholding in free zones.
               •    Economic needs test shall apply to the
                    inland commercial presence (other than
                    in free zones) according to the criteria
                    as stipulated in the horizontal section.
               •    Relaxation of economic needs test shall
                    be in 2002 for non-life business.
               •    Foreign capital equity shall not exceed
                    49% of the total capital required for the
                    company (other than in free zones) up
                    to 31 December 2002.
               •    As of 1 January 2003, foreign capital
                    equity shall be up to 51% of the total
                    capital required for the company (other
                    than in free zones).
               •    Foreign insurance companies’ branches
                    and agencies are not allowed.
Sector    or Limitations on market access                              Limitations Additional
subsector                                                              on national commitments
                                                                       treatment


                 •     Legal cessions of the total transactions must
                       be ceded to Egyptian Reinsurance Co.
                       according to the percentages to be decided
                       by the supervisory authority and 5% of the
                       company’s treaties to African Reinsurance
                       Co.
                 •     (4) Qualified non-Egyptian directors are        (4)    A non-
                       allowed for a five-year term and may be               Egyptian
                       renewed. Their appointment and renewal is             director
                       subject to the approval of the Supervisory            must
                       Authority.                                            have at
                                                                             least two
                                                                             Egyptian
3. Reinsurance (1)     None                                                  understud
and retrocession (2)   None                                                  ies.
                 (3)   Foreign and joint venture companies are
                       allowed to carry on business in free zones •          None
                       and inland, and in the case of carrying on •          None
                       their activities in free zones, their •               None
                       transactions shall be confined to be carried
                       out in convertible currencies.
Sector    or Limitations on market access                               Limitations Additional
subsector                                                               on national commitments
                                                                        treatment


                    No maximum limits required on the foreign
                        shareholding in free zones or inland.
                    •   Foreign reinsurance companies’ branches
                        and agencies are not allowed.
                    •   Insurance and reinsurance companies are not
                        allowed to deal with reinsurers not listed in
                        the supervisory authority list.
                    •   5% of the company’s treaties must be ceded
                        to African Reinsurance Co.

                    (4) None
                                                                        (4) None
4.      Auxiliary
services    other
than
intermediation:

a.       Actuarial
services           (1)    Unbound                                       •    Unbound
                   (2)    Unbound                                       •    Unbound
Sector    or Limitations on market access                              Limitations Additional
subsector                                                              on national commitments
                                                                       treatment


                  (3) Foreign service supplier must be authorized to (3) None
                        perform this profession from a competent
                        authority in his home country and registered
                        at the Egyptian register for that purpose
                  (4) None
                                                                     (4) None



b. Consultancy
(risk assessment (1)    None
                                                                       •    None
and          risk (2)   None
                                                                       •    None
management        (3)   Foreign service supplier must be authorized
only)                   to perform this profession from a competent    •    None
                        authority in his home country and registered
                        at the Egyptian register for that purpose
                  (4)   None                                           •     None


c.         Loss
assessment         (1) Unbound                                         (1) Unbound
                  (2) Unbound                                          (2) Unbound
Sector    or Limitations on market access                             Limitations Additional
subsector                                                             on national commitments
                                                                      treatment


                    (3) Foreign service supplier must be authorized to (3) None
                          perform this profession from a competent
                          authority in his home country and registered
                          at the Egyptian register for that purpose
                    (4) None
                                                                       (4) None

d. Iaison offices
                    (1)   None
                                                                •           None
                    (2)   None
                                                                •           None
                    (3)   Commercial presence is bound only for
                          public relations and market research. •           None
                    (4)   None                                  •           None

5. Intermediation   (1) Bound only for life insurance and reinsurance
                          services.                                   (1) None
                    (2) Bound only for life insurance and reinsurance (2) None
                          services.                                   (3) Unbound
                    (3) Unbound                                       (4) Unbound
                    (4) Unbound
                 The Effects of Liberalization
1.   The Foreign owned shares in 2002/2003 was 12.3% of the insurance market
     capitals and 54.6% of the private sector capitals
2.   Their share of the life insurance premium was 23% of the whole market and
     73.1% of private sector
3.   Their share of the non-life insurance premium was 10.8% of the whole
     market and 42% of private sector
4.   There are 8 foreign managing directors leading 8 insurance companies
5.   There are another 8 foreign chairmen and deputy chairmen
6.   Two foreign actuaries and 2 loss adjusters obtained licenses and registered
     in EISA’s register