The Insurers Federation of Egypt (IFE) has affirmed that adopting AI technologies within the insurance sector is a strategic step toward developing the market, boosting competitiveness, and enhancing operational efficiency across all insurance branches.
In its latest weekly bulletin released on 7 December, the Federation stressed that this progress must be accompanied by a firm commitment to the highest ethical and governance standards to safeguard customer rights and preserve the stability and reputation of the Egyptian insurance market.
As part of its role in supporting the sector’s sustainable development, the Federation highlighted eight key recommendations:
1. Adherence to ethical standards throughout the AI lifecycle
The Federation underscored the need for insurance companies to apply clear ethical principles at every stage of AI model development and operation—from data collection and model training to testing and deployment. Integrating fairness, transparency, and explainability is essential for ensuring companies meet their responsibilities toward policyholders.
2. Combating bias and discrimination
Addressing data and model bias is considered a top priority, particularly for products directly affecting individuals, such as life and health insurance. The Federation recommends regular testing to detect and prevent any discriminatory practices, ensuring that underwriting and pricing decisions are based solely on objective, professional criteria.
3. Protecting data and customer privacy
The Federation stressed the importance of complying with personal data protection laws, adopting best practices in data governance, and using customer information under clear and transparent conditions. It emphasised that data protection is not only a legal requirement but also a vital component of building trust and strengthening the relationship between insurers and policyholders.
4. Enhancing transparency and explainability
The Federation called on insurers to adopt mechanisms that clearly explain automated decision-making processes—especially those related to underwriting, pricing, and claims settlement. It also highlighted the need to empower customers to appeal and request human review of any automated decision affecting their financial rights.
5. Supporting responsible digital transformation
While affirming its full support for the sector’s digital transformation and the integration of AI in underwriting, claims management, customer service, and fraud detection, the Federation emphasised that this progress must be grounded in professional responsibility, transparency, and fairness. Technological advancement, it noted, must be balanced with robust consumer protection.
6. Developing human capabilities and strengthening competencies
The Federation stressed the importance of investing in workforce training to build digital skills, understand AI systems, and manage their associated risks. It emphasised that effective digital transformation relies on the integration of advanced technologies with qualified human capital—not on replacing it.
7. Enhancing cooperation between insurers and regulatory bodies
The Federation called for continued collaboration between insurance companies and the Financial Regulatory Authority to establish a clear regulatory framework governing the use of AI in the sector. It underscored the need to develop regulatory guidelines and technical standards that ensure responsible AI adoption aligned with international best practices.
8. Encouraging innovation while preserving public trust
The Federation reaffirmed that trust is the cornerstone of any successful digital transformation. It urged insurance companies to ensure that AI-driven applications remain understandable, fair, responsible, and free from risks that could undermine the sector’s credibility or market reputation.