EFSA organises first training programme for private insurance funds

Financial Service Institute, which is affiliated to Egyptian Financial Supervisory Authority (EFSA), began on Sunday its first training programme on managing private insurance funds, a statement from EFSA said.

The three-day programme aims to deepen the awareness of risk management, accounting standards, investment policies, actuarial reports and financial solvency standards of private funds.

EFSA head Sherif Sami was quoted in the statement as saying that this programme came as a part of the authority’s concern with the mismanagement of private insurance funds.

Private insurance funds are used in associations or companies, and consist of paying  beneficiaries damages, financial benefits or periodic salaries in specific cases.

Over 600 private insurance funds are registered in EFSA with more than 40 million Egyptians subscribing to them, Sami noted, detailing that the total funds exceeded EGP 40m.

Representatives from 20 private insurance funds are participating in this programme, from a variety of sectors such as banking, electricity, health and construction sectors.

Due to the high turnout for this programme, another course will be held in March, said Gamal Khalifa, executive chairman of the Financial Service Institute. Last week, Sami announced that insurance activities come as a priority in EFSA’s plan for 2014, as it is focusing on insurance regulations, funds, and documents and micro-insurance.

The Advisory Committee on Insurance, which was formed by EFSA, discussed in a meeting with Sami last Tuesday potential amendments to standing insurance regulations.

Sami told the Daily News Egypt that amendments to these regulations, which date back to 1981, will target the Takaful and microfinance insurance systems.

He also added that they have discussed top-level management of insurance companies in Egypt through setting rules related to the formation of boards of directors and their members as well as the role of its committees.

Sami pointed out that these regulations will be finalised by the end of March, and will go into effect if the cabinet approves them.

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