The Egyptian Financial Supervisory Authority (EFSA), the non-banking financial services regulator and supervisor, undertook a five days knowledge exchange visit to Germany, organized by the GIZ MFMR programme, to learn from the European regulator’s experience in supervising one of the largest insurance markets in the world.
As the Egyptian insurance market is growing, the size of the German insurance market and the regulatory framework put in place provide many lessons to learn from. In Egypt, the insurance market attracts new entrants, while firms find new delivery schemes to reach out to a growing number of middle class clients. The development of microinsurance products further illustrates the desire to reach areas that may previously have been off limits. In contrast, Germany has a total of 560 insurance companies that account for annual installments of about 187 billion Euros and investments exceeding 1.400 billion Euros. In addition, it holds about 30% of the global re-insurance market.
During their visit to Germany, EFSA’s delegates responsible for insurance supervision and consumer protection visited the Federal Financial Supervisory Authority (BaFin) as well as the European Insurance and Occupational Pensions Authority (EIOPA), that includes all insurance supervisory bodies in the EU. Discussions evolved on the development of microinsurance formulas, the applied risk-based supervisory methods, best practices in handling dealers’ complaints, and settling disputes with insurance companies. EFSA chairman, Mr. Sherif Samy, and EIOPA’s president agreed to further exchange on future training opportunities for EFSA’s experts.
The exchange visit further contributed to a better understanding of the different infrastructure players’ roles and initiatives regarding financial inclusion and financial stability, when the Egyptian delegation visited the German Insurance Association (GDV), the German Actuarial Association (DAV), and Standard & Poor’s. Finally, Mr. Samy exchanged views with GIZ senior management and met with the Access to Insurance Initiative (A2II) at the GIZ headquarters in Eschborn.
By Mehrechane Nayel