By Mohamed Azab
The Egyptian Financial Supervisory Authority (EFSA) approved the establishment of a direct brokerage company for insurance, according to the Law 10/1981, modified by Law 118/2008.
It was established in favour of Cairo National Automotive (CNA), the Mercedes agent in Egypt.
The company was established under the name of Star Brokerage, with a capital of EGP 2m, and of which half has been paid, according to the supervision and control’s law. The company will be responsible for direct brokerage activity for the direct insurance of the owned assets, which belong to Mercedes, instead of making direct contract with insurance companies or direct brokerage companies in the market.
The EFSA approved the proposal of the Egyptian Insurance Brokers Association (EIBA) to organise the brokerage sector for insurance and the brokerage companies. Among the suggestions: the brokerage company does not have to present limited examination reports, nor financial quarterly lists. It is enough to present a quarterly report outlining the amount of operations where the company plays as a mediator and the amount of commissions gained. A report elaborated by the supervisor for accounting and financial lists, will only be presented at the end of the financial year. The accounting supervisor at the brokerage company for insurance will only be restricted by the accountants and auditors’ record; he does not have to be registered in the authority’s records.
The amendments stated that the responsible person of the actual administration, the managing director of the brokerage company for insurance or reinsurance has to be registered in the administration among the insurance brokers. He also should have experience in the operations of brokerage companies of not less than nine years, and should have worked as a general manager for an insurance company for not less than five years. He should also have practiced a technical job related to insurance, manufacturing insurance or reinsurance, for not less than 15 years. The broker should not be working in more than one job at insurance or re-insurance company or a company related to insurance at the same time.
CNA represents German Mercedes Cars in Egypt, specialised in manufacturing luxurious cars, small buses, and double-decker busses and trucks. Mercedes has achieved many patents, and was the first to introduce the brakes anti-suspension system through airbags, movable lights with the steering wheels, and an endless system for security and safety.
