Egypt's Financial Regulatory Authority adopts a package of measures to implement the new Unified Insurance Law with technology and modernisation of the sector being a top priority.
Innovation, improving each customer’s experience, pricing efficiency, and using modern technology are at the top of priorities to enhance the sector’s efficiency said The Financial Regulatory Authority (FRA) chairman Dr Mohamed Farid during a meeting with leaders from the insurance market earlier this week, according to local media reports. The meeting comes as part of the FRA’s preparations to introduce the measures it intends to take for implementing the new insurance law.
Dr Farid noted that the FRA will issue a package of decisions and regulations that contribute to expanding the base of insureds, in addition to creating new advanced products and coverages that meet the emerging needs of the business sector and various individuals. He also said that there are amendments and regulations that will be approved soon to allow private insurance funds to spread their services and include larger categories of different business sectors.
Technology is essential for development
In the coming stage, the focus will be on the integration of modern technology into insurance companies’ business models, which will contribute to accelerating the pace of marketing and making insurance products and services available, said Dr Farid.
He added that business models need to keep pace with all developments in terms of enhancing customer satisfaction and acceptance rates by raising the efficiency of operation systems in terms of communication, collection of premiums and paying claims.
Dr Farid pointed out that changing the citizens’ awareness of the importance of insurance requires concerted efforts between the FRA, insurers and the Federation. He added that enhancing the customer experience and satisfaction rates will contribute significantly to improving insurance coverage and awareness in the coming period.
He revealed that the electronic link between the FRA and insurance companies is in its finals stages, which will build a comprehensive database on the sector that enhances regulatory and supervisory capabilities.
The Unified Insurance Law was officially approved by the Egyptian government in May 2024 and signed by the president in July 2024. The new Law aims to modernise the regulatory business environment and enhance the insurance laws and regulations. Among the important new provisions of the new law is increasing the minimum capital requirements for (re)insurance providers, introducing new categories of compulsory covers, creating new channels of distribution, and allowing the establishment of specialised insurance providers with specific terms and conditions.