الهيئة العامة للرقابة المالية

• The new decree seeks to utilize technology and digital transformation to enhance the insurance market’s contribution to financial inclusion

FRA Board of Directors, chaired by Dr. Mohamed Farid, has issued Decree No. 267 of 2024, amending Decree No. 122 of 2015, to regulate the e-issuance and distribution of certain standardized insurance policies through information systems networks. The initial phase of this initiative will focus on the e-issuance of standardized policies and subsequent insurance policies will be introduced in accordance with evolving market demands.

Pursuant to the decree, FRA has amended Article 2 by adding a new clause (f) where the paragraph ends with “and any other insurance policies approved by the Authority in accordance with the approved requirements”.

The new decree facilitates the e-issuance of standardized insurance policies for new cars, thereby streamlining the process. This type of policies do not require an inspection by insurance companies, or a physical examination, or human intervention to determine the value of the insured vehicle, the price of the insurance policy, or the value of the insurance premium. For other vehicles, non-standardized policies remain necessary.

The said decree aligns with FRA’s strategy to promote financial inclusion, digital transformation and the adoption of financial technology. This move aims to bolster the insurance sector, benefiting a wider segment of the population and the economy as a whole. The Authority’s decree is underpinned by its commitment to achieve the economic and social goals of the insurance industry, preserving national savings and fostering insurance awareness. The Authority seeks to enhance the insurance market and elevate professional standards within the industry.

FRA had already established a framework for electronic insurance, allowing the electronic issuance and distribution of certain insurance policies, including standardized policies, either directly to customers or through designated entities.

The term ‘standardized policies’ refers to a specific set of insurance policies, including compulsory car insurance , travel insurance, no-exam life insurance, mico-insurance in addition to personal accident insurance which has been approved by the Authority since 2019.