Egypt – Ins. industry will rely on Regtech
Tuesday, 09 10 2019, Category: Insurance and Reinsurance, Country: Egypt
The Financial Regulatory Authority (FRA) seeks to rely on technology to provide supervisory services to the insurance market to facilitate supervision and communication with insurance companies, known as Tech-Reg. The authority is currently cooperating and coordinating with insurance companies through the Insurance Federation of Egypt, to establish an information centre for all insurance activity data, Subsequently, this thus helps the development of subscription, lower risks, setting fair value of insurance coverage, development of current products, and becoming a base for innovation in insurance and stopping harmful practices by customers or companies.
The FRA is also considering the introduction of online controls and licensing standards, online insurance, whether for existing companies or specialised companies established on the basis of that system, and contribute to delivering insurance services to all segments of society.
The authority seeks to encourage insurance companies to use digital applications and electronic issuance of insurance policies as one of the important distribution channels. This is in addition to allowing the insurance companies and microfinance associations to deal with micro insurance clients through mobile applications.
The FRA looks forward to the proposed legislative amendments to Law No 10 of 1981 to oversee and control the insurance sector. The amendments would provide incentives that contribute to the growth, availability and accessibility of micro-insurance activity by reducing capital requirements when establishing specialised micro-insurance companies.
The FRA is also considering setting controls that require insurance companies in general to reach groups in need of micro-insurance. Plus, allowing the registration of insurance brokers specialised in the field of micro-insurance, may be one of the factors that help in the spread of this insurance.