الهيئة العامة للرقابة المالية

Dr. Mohamed Farid:

• Microinsurance regulations aim to enhance protection for the most vulnerable groups and encourage small business growth.
• The new resolution establishes a clear definition of the activity and operational requirements for service providers.
• Regulations ensure simplified policy wording and expedited claim payouts.
• Specific conditions for subscription, marketing, and digital distribution via banks, postal services, telecommunications companies, digital brokers, and the Agricultural Bank.
• Companies shall submit periodic reports to the Authority, train staff, and promote financial literacy for target groups.
• A 6-month grace period is granted for existing companies to align their status with the new regulations.

 Financial Regulatory Authority (FRA), chaired by Dr. Mohamed Farid, has issued governing rules for micro-insurance activity. This strategic move aims to bolster financial inclusion, expand the insurance safety net for low-income individuals, and support small and micro-enterprises in Egypt.

Resolution No. 319 of 2025 provides a precise definition of microinsurance and outlines the obligations of insurance companies and the branches permitted to practice this activity. It sets standards to ensure that policies are simple and transparent, premium collection is flexible, and claims are settled swiftly. Furthermore, it establishes guidelines for subscription, marketing, immediate claim settlement, continuous training for intermediaries and employees, periodic reporting, and financial literacy programs to raise awareness among target groups.

Under the resolution, microinsurance is defined as any insurance service targeting low-income individuals to protect them against potential risks in exchange for premiums proportionate to the nature of the risk. The maximum insurance coverage is determined in accordance with the resolutions issued by the Authority’s Board of Directors.

In this context, Dr. Mohamed Farid, FRA Chairman stated that regulating microinsurance with clear and precise guidelines is a vital step toward enhancing insurance protection for low-income segments.

He added that these regulations guarantee the simplicity of products, the efficiency of premium collection and claim payouts, and the promotion of insurance awareness. This enables the most vulnerable individuals to access insurance services with ease, contributes to financial inclusion, and encourages small and micro-enterprises to grow.

The new resolution specifies the fields in which licensed companies may operate. This includes life insurance and capital redemption operations, such as life insurance, personal accident insurance, and long-term medical treatment.

It also covers property and liability insurance, including fire, land, river, and marine transport, fishing vessels, supplementary motor insurance, engineering risks, agricultural insurance, miscellaneous accidents, credit risk (non-payment), and short-term medical treatment, in addition to any other branches approved by the Authority.

The resolution stipulates that microinsurance products must meet specific criteria: simple and intelligible policy language, clear and transparent marketing materials, flexible premium collection, and rapid claim settlements. It also mandates the use of  technology in distribution, collection, and claim processing, the establishment of a simplified mechanism for handling customer complaints, and a prohibition on charging the insured any additional amounts beyond the premiums and statutory fees.

The resolution sets guidelines for subscription and claim settlement, including the adoption of an approved subscription policy tailored to the target demographics. It requires technical pricing bases to ensure fair premiums, the identification of appropriate marketing and distribution channels, and a commitment to verifying customer data. Additionally, claims must be settled promptly and effectively; a decision on a claim must be made within 5 business days of receiving the required documents, and payment must be disbursed within 2 business days of approval.

Additionally , the resolution identifies the entities authorized to market and distribute microinsurance policies digitally: digital insurance brokers, banks registered with the Central Bank of Egypt (CBE), Nasser Social Bank, Egypt Post, telecommunications companies, the Agricultural Bank of Egypt, and companies, associations, and NGOs (Categories A and B) licensed to provide microfinance services.

Insurance companies are required to submit quarterly reports to FRA containing comprehensive activity data, including the number of policies, premiums collected and outstanding, claims paid, commissions, and type of insurance. They must also implement financial education programs to increase insurance literacy among target groups.

Existing insurance companies are granted a 6-month grace period to comply with the new regulations. This resolution supersedes any conflicting provisions and shall take effect the day following its publication in the Egyptian Gazette (Al-Waqaye’ Al-Mesreya).

It is worth mentioning that in mid-December, FRA approved the establishment of “Sawa,” the first dedicated microinsurance company, as part of the implementation of the Unified Insurance Law. Furthermore, FRA recently issued a resolution increasing the maximum coverage limit for microinsurance to 390,000 EGP.