الهيئة العامة للرقابة المالية

Dr. Islam Azzam – FRA Chairman:

• The legislative and regulatory framework is driving companies to innovate and develop highly efficient products.
• Insurance serves as a vital tool to protect Egyptian families and support comprehensive economic growth.
• Product diversification and awareness are key to transform the insurance landscape across Egypt and Africa, fully backed by FRA’s support for the Insurance Federation.
• Mobile-app insurance policies are now a reality, with over 10 companies preparing to launch digital offerings.
• Scaling micro-insurance is a priority to protect vulnerable groups alongside MSMEs.

Dr. Islam Azzam, FRA Chairman delivered the opening address at the 52^nd Conference of the African Insurance Organization (AIO). Hosted in Cairo, the landmark event was organized by the Insurance Federation of Egypt (IFE) and drew widespread participation from insurance industry leaders, regulatory authorities and experts across Africa.

The conference featured a distinguished lineup of officials, headlined by Dr. Mohamed Farid, Minister of Investment and Foreign Trade who delivered a keynote address on behalf of Prime Minister Dr. Moustafa Madbouly. Also in attendance were Dr. Ahmed Rostom, Minister of Planning and Economic Development; Ambassador Mohamed Abu Bakr, Deputy Minister of Foreign Affairs for African Affairs; Dr. Yared Mola, President of the AIO; and Mr. Alaa El-Zoheiry, Vice President of the AIO and President of the Insurance Federation of Egypt. A broad assembly of regional financial regulators, institutional representatives and insurance and reinsurance CEOs from across the continent joined the conference.

Dr. Islam Azzam emphasized that insurance serves as a vital pillar for economic and social empowerment, providing crucial stability for both individuals and institutions. He noted that this conference coincides with the two-year anniversary of the enactment of the Unified Insurance Law (No. 155 of 2024), which strategically views insurance as a major catalyst for inclusive economic growth.

He added that Egypt’s insurance industry is undergoing a pivotal transformation to boost financial inclusion and expand social protection frameworks. This is being achieved through the expansion of micro-insurance and the development of tailored insurance products for micro, small, and medium enterprises (MSMEs), professionals, laborers and workers within the agricultural and livestock production sectors—ultimately driving socioeconomic development and enhancing risk resilience across productive activities.

FRA Chairman highlighted that the Egyptian market holds immense growth potential under the new legislative and regulatory framework, offering significant opportunities to expand outreach to underserved segments of the population. He pointed out that low insurance penetration rates remain a shared challenge across the African continent; penetration rates do not exceed 3% in most African countries, with the exception of South Africa, where it reaches approximately 12%.

To reshape this landscape, Dr. Azzam stressed the critical need to intensify financial literacy and insurance awareness campaigns. He reaffirmed FRA’s ongoing support for initiatives led by the Insurance Federation of Egypt (IFE) to educate citizens on the importance of insurance in achieving financial and social stability. He also called for the continuous development of innovative products that directly align with the everyday needs and concerns of citizens.

In line with digital transformation strategies, Dr. Islam Azzam explained that FRA has established a flexible and encouraging regulatory environment to drive the adoption of financial technology (Fintech) within the insurance sector. This includes regulatory frameworks that mandate companies operating digitally to deploy robust technological infrastructure and adhere to the highest cybersecurity standards.

To date, FRA has approved two companies to offer products using fintech, covering the digital issuance of insurance policies via mobile applications, digital identity verification, Electronic Know Your Customer (e-KYC) procedures, and the electronic execution and registration of digital contracts. Furthermore, more than 10 other insurance companies have submitted applications to issue policies digitally via mobile platforms. Dr. Azzam also highlighted the role of FRA-Sandbox which has so far approved two innovative projects leveraging technology to improve risk and damage assessment accuracy while accelerating claims processing, noting that FRA continuously welcomes creative solutions that help developing the sector and reach wider consumer demographics.

FRA Chairman noted that current indicators clearly signal a strong market demand for more diverse insurance products. To support this growth, FRA has issued approximately 80 executive regulations under the Unified Insurance Law over the past two years, aiming to construct a flexible regulatory framework aligned with global best practices that enhances the sector’s efficiency and investment appeal while maintaining strict compliance with governance and risk management standards.

Dr. Azzam highlighted that FRA has completed regulating several core professions linked to insurance activities, including actuaries, insurance consultants and insurance/reinsurance brokers. Additionally, FRA continues to engage in dialogue with sector professionals, industry associations, and companies to support capacity building and human capital development through advanced training programs both locally and abroad.

Regarding the development of specialized activities, Dr. Azzam stated that FRA has issued new regulatory standards for reinsurance and, for the first time, has established guidelines and listing criteria for Managing General Agents (MGAs). FRA has also finalized the regulatory framework governing specialized medical insurance companies and healthcare management programs, under which 6 companies have secured temporary licenses to operate and 4 companies have applied for final licensing. Furthermore, FRA Chairman pointed out that FRA has approved the establishment of two new companies specializing in micro-insurance, with a third application currently under review, to expand insurance coverage to broader segments of the population.

FRA has actively worked to diversify insurance product distribution channels, expanding beyond traditional methods to include post offices, banks, e-commerce platforms, and telecommunications companies, with approximately 11 insurance companies currently marketing their products through the branches of 30 banks nationwide. He stressed that bolstering the financial solvency of insurance companies remains a primary focus for the FRA, which is being achieved by upgrading rules for calculating technical provisions and reserves, increasing capital requirements by approximately 10-fold and implementing IFRS 17 to enhance transparency, disclosure and standard accounting practices for insurance contracts.

In closing, Dr. Azzam underscored that safeguarding consumer rights and fostering a fair market ecosystem remain top priorities for FRA. The recently issued specialized complaint-handling guidelines introduce streamlined mechanisms designed to ensure consumers can efficiently resolve issues and access their full rights and services.

Dr. Islam Azzam announced that FRA is currently studying the implementation of a comprehensive electronic linkage project. This initiative will connect the Authority with all non-banking financial sectors through an integrated digital system, enabling advanced data analytics, streamlining procedures and elevating the efficiency of regulatory and supervisory services.

In closing, FRA Chairman emphasized the critical importance of fostering cooperation and integration among African markets, as well as exchanging successful expertise and benchmarks. Such integration will transform the continent’s insurance industry and maximize its contribution to sustainable socioeconomic development under Egypt Vision 2030.