The Unified Insurance Law, enacted earlier this month, allows the Financial Regulatory Authority (FRA) to license actuarial companies.
Under the Law, actuarial companies have to be registered with the Authority. The minimum issued and fully paid-up capital of an actuarial company is EGP3m ($62,160) or any amount determined by the FRA’s board of directors.
The Law stipulates that to establish an actuarial company, those involved must submit an application to the Authority to register and license the company to practise its activity, accompanied by a feasibility study, the company’s articles of association, its bylaws, and the commercial registration. It also requires the company’s top executive management personnel to be among those listed on the Authority’s register of actuarial experts.
The registration fee for an actuarial company is a maximum of EGP50,000.
The 1981 insurance law, superseded by the Unified Insurance Law, did not contain provisions for the establishment of actuarial companies, but dealt with actuaries individually even if they were part of a company.
Local media reports say that some industry players believe that the EGP3m minimum capital was unnecessary and could be a hurdle to the establishment of actuarial companies.