The chairman of the Financial Regulatory Authority (FRA) has stressed the need for insurance entities to increase investment in developing the capabilities of professionals to groom cadres capable of raising the efficiency and competitiveness of the industry, especially in the insurance broking segment.
Dr Mohamed Farid said he made these comments in light of the Authority’s constant study of the needs of non-banking financial markets, according to a report by the economic news website Amwal Alghad.
Private insurance funds
Dr Farid added that investment banks operating in the Egyptian market should play a major role in increasing awareness of private insurance funds and their investment imperatives, especially after the Authority’s recent directive for these funds to allocate at least 5% of their total assets to open-ended funds invested in shares listed on the Egyptian Stock Exchange, in addition to other investment tools.
He stressed that the Authority's development policy in the non-banking financial sector focuses on enhancing the degree of integration across non-banking financial activities to enhance the efficiency and competitiveness of markets. For example, the insurance sector has witnessed important developments, most notably the issuance of the Unified Insurance Law in 2024.
Unified Insurance Law
He explained that the Unified Insurance Law represents a legislative framework that includes four laws that regulate the insurance sector, explaining that the law took into account all global developments and practices and was integrated with the vision of the Egyptian state and its development goals, especially enhancing levels of insurance coverage.
He pointed out that some traditional insurance business models are no longer useful in achieving desired targets and there is a need to bring about a real transformation in these models that rely on technology to achieve the required progress in the sector with the maximum possible benefits.