Damascus-SANA
Today, the Ministry of Finance issued a decision that includes controls for the work of microfinance banks in the field of insurance and allows them to market and sell insurance products issued by Syrian insurance companies according to certain determinants.
Based on the decision, which SANA received a copy of, an agreement must be concluded between any insurance company and the microfinance bank to open issuance outlets with the bank through which the insurance products issued by the company will be sold. The agreement includes, for example, “the percentages of commissions paid by the company to the bank according to the branches Insurance, the products allowed to be sold, the mechanism for collecting and transferring premiums, the time limits required for this, and the term of the agreement.”
The aforementioned determinants also indicate that a prior approval of the text of the agreement must be obtained from the Director General of the Insurance Supervisory Authority and the Central Bank of Syria. Approval of it is considered an approval for every insurance product that is subsequently offered under it. The insurance company is obligated to deposit a copy of the agreement with the Authority within a week from the date of its signing.
Based on these determinants, the employee charged with selling insurance at the issue port must have good knowledge and experience in the field of insurance sales and marketing, and the insurance company must have a licensed branch in the governorate in which it intends to open an issue outlet. Insurance.
The microfinance bank and the insurance company are also obligated, according to the articles of the aforementioned finance decision, to provide the insurance supervisory authority with a schedule that includes the bank’s work in the field of insurance on a quarterly basis, while all microfinance banks that practice insurance work before the date of this decision are obligated to adjust their positions in line with its provisions during Six months from the date of its issuance.
It is noteworthy that Law No. 8 of 2021 allowed the establishment of microfinance banks with the aim of securing the necessary financing for the projects of small producers, small business owners, people with limited income and those with no income by granting them operating loans in order to secure additional income for this segment, create job opportunities and achieve sustainable development.
Waseem Al-Adawi
