Egypt: Lloyd's added to list of approved reinsurers
With effect from 1 January 2014 Lloyd’s has been added to a list of approved foreign reinsurers held by the Egyptian Financial Services Authority (EFSA).
Approved reinsurers are those considered to be sufficiently financially secure for Egyptian cedants to transact business with them without having to undergo an approval process and, as a result of Lloyd’s approval, Egyptian cedants will no longer have to undergo this process to place reinsurance business with Lloyd’s syndicates.
Where the requirement for approval does apply the process can be fairly onerous and an Egyptian cedant may need to file detailed information about any proposed reinsurer which is not on the list, including accounts and particulars of financial strength ratings.
Lloyd’s has worked closely with local partners and the EFSA to achieve this approval and is hopeful that this development will significantly streamline the process for Egyptian cedants and brokers placing reinsurance business in the Lloyd’s market.
In 2012 Egypt was Lloyd’s third largest market on the African continent and Lloyd’s underwriters have a long history of providing support to Egyptian insurance companies. Additionally, through Egypt’s WTO commitments, Lloyd’s underwriters are permitted to write direct cross border insurance of marine and aviation hull and liability, cargo risks in respect of international transits and life, health and personal accident insurance, without prior regulatory approval.