الهيئة العامة للرقابة المالية

The insurance policyholders term refers to the following categories:

• Policyholders:Individuals or entities who have purchased insurance policies.
• Beneficiaries:Individuals or entities who are entitled to receive benefits under an insurance policy.
• Third parties:Individuals or entities who are not directly involved in an insurance contract but may be affected thereby.

The Egyptian Insurance Regulatory Authority (EIRA), replaced by FRA as per Law No. 10/2009, identified a set of challenges facing the growth of the Egyptian insurance sector.

One of the key challenges is the low level of insurance awareness among a large segment of the population. This is compounded by the fact that insurance contracts are considered adhesion contracts, which means that the policyholder has little or no bargaining power.

FRA and the insurance sector are working together to address this challenge through a number of initiatives, including:

• Setting out the Unified Insurance Law:This law aims to simplify and modernize the insurance regulatory framework and make it easier for people to understand and purchase insurance.
• Promoting financial inclusion:FRA and the insurance sector are joining forces to develop the micro-insurance products that are affordable for low-income individuals.
• Adopting digital transformation:FRA seeks to make insurance products and services more accessible and convenient through the use of digital technologies.
• Improving customer service:FRA and the insurance sector are working to improve the quality of customer services provided by insurance companies.

FRA also established the Central Department for Investor Awareness, which focuses on raising insurance awareness among the public. Additionally, FRA works with the Financial Services Institute (FSI), its training arm, to develop and implement a suite of initiatives to promote insurance literacy.

Low insurance awareness poses a raft of challenges including:

• Individuals not realizing their need for insurance, even if they have the financial resources to purchase policies.
• Individuals being aware of the importance of insurance but not knowing which type of insurance product they need.
• Individuals not paying attention to the terms and conditions of their policies, which may cause problems when claiming compensation.
• Individuals not following the recommendations of insurance companies when inspecting their insured property.
• Individuals prioritizing the price of insurance over the quality of the insurance service or product.
• Individuals feeling that insurance is not important and the cost of premiums puts a burden on their budget.
• Individuals not being aware of the FRA’s role in protecting rights of policyholders and beneficiaries.

FRA is working hard to address these challenges and make insurance as way of life for all Egyptians.