الهيئة العامة للرقابة المالية

• This decision is consistent with FRA’s initiatives to promote digital transformation, improve insurance inclusion and expand insurance coverage

In a significant move towards digital transformation, FRA’s Committee for Reviewing Fintech Applications in Non-Banking Financial Activities has approved Misr Insurance and Sarwa Insurance to issue Digital Zero-Gap Auto Insurance Policies.

In accordance with the Committee’s approval, Misr Insurance and Sarwa Insurance are authorized to issue policies electronically by deploying specific FinTech solutions. These solutions encompass electronic identity verification, authentication, and validation; digital customer onboarding and due diligence (KYC/AML); electronic execution of contracts for non-banking financial instruments; and secure electronic data management, all facilitated through Vlens an approved outsourcing service provider.

It is worth mentioning that FRA had previously registered four technology-outsourcing providers, pursuant to Law No. 5 of 2022, which governs FinTech in non-banking financial activities, and FRA Board decrees 139-141 of 2023. These providers have initiated contractual agreements with numerous non-banking financial institutions aiming to digitize their service offerings.

This initiative underscores FRA’s commitment to activate legislative and regulatory frameworks, as mandated by Law No. 5 of 2022, to foster the development and regulation of FinTech within non-banking financial activities. FRA mandates that all entities deploying FinTech in non-banking financial services implement robust technological risk management and governance frameworks. This ensures operational resilience, safeguards stakeholder rights and maintains financial stability.

The adoption of this technology will significantly enhance client access to insurance policies, streamlining the issuance process. Customers can now instantly procure zero-gap auto insurance policies digitally, eliminating the need for branch visits. All procedures are completed swiftly and securely online via smartphones or computers, resulting in substantial time and effort savings.

Moreover, electronic verification and digital signatures guarantee robust customer identity authentication and data protection, mitigating risks associated with fraud and human error during policy issuance. Digital payment options further simplify the process, obviating the need for cash or checks and directly supporting FRA strategic goals of fostering insurance, financial and investment inclusion.

Beyond 24/7 access to policy documents via digital platforms, eliminating the risk of lost or damaged paper copies, customers benefit from readily available technical support through digital channels, ensuring swift resolution of queries and issues. Furthermore, the electronic data trail enables streamlined regulatory oversight; ensuring companies adhere to all applicable laws and regulations.

This digital transformation enhances customer security and flexibility in securing insurance coverage, while simultaneously optimizing the insurance process for efficiency and transparency. These advancements will positively impact the insurance market and accordingly, the national economy.