The Chairman of the Financial Regulatory Authority (FRA), Mohamed Omran, signed a cooperation protocol on Tuesday, with the social institution of the African Reinsurance Corporation, (Africa Re). Under this protocol, the social institution of the African Re company will be provided by financial support for establishing Egypt’s first actuarial life table, according to press statement released by the FRA.
Notably, the social institution of African Re company seeks to implement CSR initiatives that serve the insurance industry in African countries.
An actuarial life table is a table or spreadsheet that shows the probability of a person, at a certain age, dying before his or her next birthday. These statistics calculate the remaining life expectancy for people at different ages, and the probability of surviving to a given age.
For his part, Omran, said that since the entry of the insurance industry in the Egyptian society, there were no attempts to create such a table. “The alternative was to rely on choosing the nearest English tables that can keep pace with the Egyptian experience in death and disability rates,” he illustrated.
Omran added that over many years, it has been difficult for the insurance’s comptroller to put a fair pricing of life insurance premiums, in line with the society’s experience of death and disability rates, as stipulated in Article 48 repeated no3, of the executive regulations of the Supervision and Control of Insurance Law.
“Therefore, the authority seeks to implement the project for establishing first actuarial life table (death and disability), and also seeks to establish sickness tables for the Egyptian society, to achieve a fair pricing of life insurance premiums,” Omran explained.
He insisted that the authority will update the actuarial life table, and the illness tables, to comply with the international standards of life insurance markets.
Omran also affirmed that the FRA is looking forward to developing the optional pension schemes provided by private insurance funds, and to achieve better protection for the insurers.