Freezing the work of insurance companies in Sudan

Sudan Events – Rehab Abdullah

Informed sources revealed that the National Insurance Supervisory Agency has frozen the licenses of 3 companies, 2 of which work in the field of medical insurance, in addition to a general insurance company. She stated in her interview with Al-Ahdaath that this confirms the collapse of the insurance market.
The sources attributed the freeze to the agency’s approval, after the dissolution of its previous board of directors and before the appointment of its current board of directors, of licensing a number of companies without an objective study, and these companies were unable to fulfill the licensing requirements specified in the Insurance Control and Supervision Law of 2018.
The sources explained that ratification according to the law (Article 31) has requirements for licensing and practice controls. All of this was not reviewed by the entity granting the license, so the freeze was imposed, pointing out that one of the conditions for licensing is that no shareholder owns more than 20% of the capital, in addition to the fact that there is Whoever obtained a company license and benefited from selling the license, meaning he did not have the capabilities to operate a company, nor did these companies review during the 6-month trial period according to the law. The source confirmed that when any sector loses its commitment to implementing the laws regulating work, it is doomed to collapse. He added that there is a real dilemma, which is the lack of a board of trustees for the Policyholders’ Guarantee Fund. This fund compensates the claims owed to those affected in the event of companies’ inability due to force majeure circumstances that led to the cessation of work or liquidation. Pointing out that (this fund was formed after the liquidation of a number of companies and the rights of policyholders were lost at that time).
However, the Fund’s Board of Trustees was dissolved by a decision of Dr. Ibrahim Al-Badawi, and it has been without a board for more than three years, and the powers of the Board are exercised by the Secretary General of the National Insurance Supervision Agency. These are the tasks of the Council according to the law. It consists of a president and five members, and a Secretary-General of the Fund is appointed by this Council.