الهيئة العامة للرقابة المالية

The insurance sector is a key pillar of the Egyptian non-banking financial sector, as it plays a vital role in supporting the economy and ensures financial stability, helps to promote national investment and provide financial protection for individuals and businesses against various risks.

The insurance sector also serves as a primary channel for mobilizing national savings to finance national investment and development plans, which in turn create new jobs and reduce inflation. Additionally, private pension funds provide additional retirement benefits to their members.

It is worth mentioning that FRA has made significant progress towards implementing international supervision standards for the insurance industry. To this end, FRA strengthened the regulatory framework for the insurance sector and diversified services provided to the stakeholders.

Moreover, FRA streamlined a raft of regulatory measures and procedures, raised efficiency of its staff, and developed capabilities and competencies of insurance professionals.

Vision & Strategy:

FRA has adopted a clear-cut strategy to increase the insurance sector’s contribution to GDP through a raft of key pillars, most notably:

• Continuous updating of the regulatory framework governing the insurance activity to be in alignment with latest standards issued by international standard setters.
• Developing the business environment by introducing new insurance products, especially green and micro-insurance.
• Developing the insurance sector’s operation mechanisms by adopting digital transformation and artificial intelligence to increase the penetration rates and setting rules for the targeted groups and entities using electronic applications and processing, digital marketing platforms, and telecommunications firms.
• Creating integration with other financial sectors, especially the banking sector (bancassurance) and postal sector (postal insurance).

Characteristics of the Egyptian Insurance Market

• Variety of insurance types

The Egyptian insurance market offers a variety of insurance products, including personal insurance, property and liability insurance, and micro-insurance. These types can be practiced through traditional commercial methods, Islamic Takaful methods, or micro-insurance methods, which are integrated with microfinance.

• Multiple insurance entities

 The Egyptian insurance market is characterized by the presence of various insurance entities, depending on the type of insurance, including:

• Insurance companies

Insurance can be practiced through individual insurance companies or through insurance pools established between companies to manage a specific type of insurance.

• Government pension funds

The law has granted these funds an independent legal personality to practice certain types of insurance that Egyptian state agencies and units wish to engage in for specific reasons.

• Private pension funds

The private pension funds are one of the most important forms of savings tools that should be registered with FRA as separate legal entities.  They provide insurance/social/healthcare benefits to a group of employees.

The private pension funds are one of the most important forms of savings tools. They are special insurance systems registered with FRA and have legal personality upon registration. These funds, that are separated from the entity establishing them, provide benefits to a group of the entity’s employees, including insurance benefits, additional pensions, and social or healthcare benefits.

 Insurance Federation of Egypt

The Insurance Federation of Egypt (IFE) was established to represent insurance companies and promote development of the insurance sector.

 Insurance intermediaries

The law allows insurance and reinsurance companies to open representative offices in Egypt to work in the insurance consultancy market, public relations, and communications.

The insurance sector also includes certain professions (Individuals or and companies) licensed by FRA to work in the insurance activity.

Recently, the Egyptian insurance sector has witnessed remarkable progress, thanks to efforts of FRA and various stakeholders in the sector. The insurance sector is expected to continue growing over the coming years, supported by the government’s initiative to promote financial inclusion and increasing awareness of the importance of insurance among the population.