Business insurance has advantages that differ from other types of insurance, according to the Egyptian Insurance Federation, where Business insurance companies are based on providing products that are compatible with the governance framework for Business companies requires the presence.
upervisory Board” to ensure that all aspects of the company’s work Compliant with Islamic Sharia, especially underwriting and investment activities, and the presence of a Sharia supervisory body is a basic requirement in all standards and controls issued by the aforementioned international bodies as well as local laws in different countries.
(Article 84) Business insurance companies to form a Sharia supervisory board.
In the Business insurance company, the funds of policyholders and shareholders are separated, by allocating separate accounts for each of them, and this characteristic stems from the nature of the role of
Business insurance companies, which do not become insured in the traditional sense, but are considered a manager of the insurance and investment portfolio for the benefit of policyholders and for a certain consideration.
It is determined according to the company’s business model. In this regard, we see several operating models that govern the relationship between policyholders and shareholders in accordance with the contracts used in building the operating model.
Accordingly, the returns obtained by the insurance company are determined (a percentage of the Mudaraba profits, a percentage of the investment profits, agency fees…etc) .
Based on the principle of business, the Business insurance company is distinguished by distributing a percentage of the insurance and investment surplus realized from insurance and investment operations to policyholders, and the distribution of the surplus is governed by :
– Legislative and regulatory framework: For example, the draft unified insurance law in Egypt required that the minimum surplus distributed under the mudaraba model be 50 %.
– Operational model (Mudarabah, Wakala, etc.)
The company’s articles of association
– Business clause on insurance policies (which governs the relationship between shareholders and policyholders
