Egypt: Regulator to establish divorce insurance pool

Source: Middle East Insurance Review | Aug 2024

The Financial Regulatory Authority (FRA) will establish an insurance pool for divorce risks after the unified insurance law takes effect.

The FRA would also determine, following an actuarial study, the premiums that husbands would pay for the mandatory divorce insurance, according to local reports.

Egypt’s proposed unified insurance law, approved last month by lawmakers, contains a provision making it mandatory to have insurance covering the risks of divorce. The objective of the coverage is to ensure the financial security of divorced women until they receive dues from their ex-husbands.

The mandatory divorce insurance will make payouts to a woman of up to EGP25,000 ($530), in a lump sum or instalments, immediately after the divorce. The compulsory divorce insurance is to be bought before the couple gets married.

The marriage must last for at least three years for the woman to be eligible to receive the insurance benefits. M

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