الهيئة العامة للرقابة المالية

• FRA allows the digital issuance and distribution of insurance policies, provided companies strictly follow Board Resolutions 139, 140, and 141 governing the use of FinTech.
• All premium payments for digital policies must go directly to the insurance company. Marketing and distribution entities (brokers or agents) are strictly prohibited from collecting these payments.
• Insurance companies must provide full disclosure of all terms and conditions for policies distributed electronically.
• The rules accredit specific channels for marketing and distributing these digital policies, including banks, postal services, digital brokers and telecommunications companies.
• The new framework cancels Resolution No. 122 of 2015 but maintains the enforcement of Resolutions 729, 730, and 902 OF 2016.

In a key step to drive digital transformation in the insurance sector, FRA Board led by Dr. Mohamed Farid, issued Resolution No. 199 of 2025. This resolution governs the digital issuance and distribution of policies, aiming to boost operational efficiency, expand customer reach and increase insurance inclusion.

This resolution is part of FRA’s continuous effort to develop the Egyptian insurance sector. It aims to adopt the latest global practices, ensure compatibility with rapid technological change, and implement the Unified Insurance Law No. 155 of 2024. By doing so, the sector can better keep pace with global shifts in the insurance and non-banking financial services industries. Significantly, the new resolution nullifies FRA Board Resolution No. 122 of 2015 which only allowed insurance companies to issue certain standard policies electronically.

Resolution No. 199 of 2025 is a sophisticated legislative innovation. It builds directly upon Resolutions 139, 140 and 141 of 2023 which set foundational rules for technology infrastructure, digital identity and digital contracts. The new resolution expands these controls and translating them into the practical regulation of digital policy issuance and distribution within the insurance sector.

Digital Policy Issuance is permitted through an insurer’s information network systems, but only with explicit FRA approval. To gain approval, companies must strictly adhere to the technology standards set out in FRA Board Resolutions 139, 140 and 141 of 2023. These foundational resolutions govern the necessary Technological Infrastructure and Information Systems, Security Measures for FinTech, Digital Identity and Contracts and the FinTech Outsourcing Registry. Additionally, all digital policies must be based on digital contracts and the company’s databases must be confirmed as linked to FRA’s central systems. The resolution offers significant benefits, most notably greater customer flexibility. Clients are permitted to print the policy directly and the policies can be marketed through officially approved channels, which facilitates the wider distribution of insurance products. FRA’s strategic goals are to facilitate customer access, reduce administrative costs and time and ensure high data quality and system integration with the Authority.

To apply for digital issuance, insurance companies are required to submit a formal request along with a detailed plan for digital issuance and distribution. This plan must outline the required insurance procedures and include materials – such as written documents and video clips – to introduce the product to customers, ensuring they review and acknowledge all associated terms and risks. The company must also provide a formal commitment to full compliance with all relevant FRA Board Resolutions, specifically Resolutions 139, 140, and 141 of 2023.

Additionally, the Authority will take no more than 30 days from the submission date to review the application and may request any necessary supplementary information. Critically, the review will also consider the company’s supervisory (regulatory) and judicial record from the preceding two years. This thorough vetting ensures the technical and regulatory readiness of companies before they are approved to issue digital policies, thus providing maximum protection for customer rights.

The regulatory framework strongly supports the shift toward a non-cash economy and enforces strict financial transparency to protect both customers and companies. To achieve this, the resolution mandates that customers pay all premiums directly into the insurance companies’ accounts. Acceptable payment methods include Point-of-Sale (POS) devices issued to the distribution entity, any other company-specific non-cash method, or general electronic payment methods like bank direct debits or payment cards. Crucially,  FRA has explicitly prohibited any third-party marketing or distribution entity from collecting or depositing premiums into their own private accounts, obligating them to use only the sanctioned, the mentioned payment channels.

Regarding operational controls and customer protection, FRA requires insurers to implement several measures. These include establishing clear contractual terms for all distribution agreements, displaying minimum required data on the digital platform and providing full disclosure of policy terms in the printed document. Coverage begins only upon the payment of the first actual premium. While marketing entities may input essential client data, they are prohibited from making any modifications. For Company Responsibility and Client Data, the insurance company alone bears the full burden of verification. This includes digitally confirming the accuracy of the National ID number, verifying mobile phone number ownership, and screening the data against Anti-Money Laundering (AML) and sanction lists. Clients are obligated to notify the company of any changes to their personal information.

FRA requires companies to clearly inform customers that the distribution entity is merely a marketing channel and holds no compensatory obligations for claims. Full responsibility for liability rests entirely with the insurance company. To support this, insurers must establish a dedicated call center specifically for digital policy customers to handle inquiries and complaints, with the contact details clearly printed on the policies.

FRA has significantly broadened the range of partners insurance companies can use for digital distribution. The resolution newly authorized three key entities: Banks registered with the Central Bank, Egypt Post and Nasser Social Bank. These additions complement the channels previously approved under Resolution No. 122 of 2015, which already included Digital Insurance Brokers, Airline Companies, Telecommunications Companies and Licensed E-commerce Platforms. The framework also incorporates other channels already approved for the electronic distribution of micro-insurance policies.

Furthermore, insurance companies must submit a copy of every finalized contract with these marketing and distribution entities to FRA. These documents must explicitly detail the types of policies being marketed, the specific marketing plans and outlets to be utilized and all other contractual obligations. Crucially, the contracts must also include a clear, mutual commitment from both parties to protect data confidentiality and information privacy. This comprehensive requirement ensures that all distribution entities operate as licensed partners under FRA’s supervision, thereby strengthening confidence in these new channels.

The resolution mandates that insurance companies must submit a formal request to FRA to market and distribute their policies through any of the aforementioned entities (the approved channels). FRA will review the application and has the right to request any supplementary data or documents it deems necessary. The final decision on the request will be issued within a maximum of 30 days from the date of submission.

The new framework explicitly mandates the continued enforcement of three specific 2016 FRA Board Resolutions, namely, Resolution No. 729 of 2016 details the technological controls and information security rules necessary for the e- issuance and distribution of standard policies. Resolution No. 730 of 2016 provides the executive controls for these standard electronic policies. Finally, Resolution No. 902 of 2016 governs the definition and executive controls for the e-issuance and distribution of micro-insurance policie