The Egypt Financial Regulatory Authority has issued a new board decision setting out conditions for insurers to issue and distribute insurance policies digitally through their information systems, subject to FRA approval and compliance with the FRA’s FinTech requirements on technological infrastructure, digital identity and digital contracts. The framework also requires premiums for digitally issued and distributed policies to be paid directly into insurers’ accounts and prohibits marketing and distribution partners from collecting premiums, fees or other amounts in a way that credits their own accounts. Insurers seeking to issue policies digitally must apply with a detailed issuance and digital distribution plan, including written materials and explanatory videos and evidence that customers have reviewed policy terms and related risks; the FRA will assess applications within 30 days and may request additional information, taking account of the insurer’s regulatory and judicial record over the previous two years. Digital issuance must be based on digital contracts, with insurer databases linked to the FRA’s databases, and policyholders must be able to print the policy; coverage only takes effect once the first premium is actually paid. Additional customer protection measures include minimum disclosures on the digital platform and full disclosure of policy terms in the printed version, limits on distributors’ role to entering basic data without amendment, insurer responsibility for digital verification of national ID and mobile number ownership and screening against anti-money laundering and asset-freeze lists, and a requirement for insurers to operate a dedicated call centre for digital-policy customers and clarify that distributors are marketing channels only and do not carry compensation liabilities. Permitted digital marketing and distribution partners include banks registered with the central bank, Egypt Post, Nasser Social Bank, digital insurance intermediaries, airlines, telecoms companies and licensed online stores, as well as other channels already approved for electronic distribution of microinsurance. Insurers must seek FRA approval to market and distribute through these entities and submit copies of the relevant contracts, with the FRA deciding within 30 days. The decision repeals the 2015 rules for electronic issuance of certain standard policies and keeps in force the 2016 decisions on technology and information security controls, execution rules for standard electronic policies, and the definition and requirements for microinsurance issued and distributed electronically.
Egypt Financial Regulatory Authority 2025-10-01
Egypt Financial Regulatory Authority issues rules for digital insurance policies requiring premiums be paid directly to insurers
The Egypt Financial Regulatory Authority now permits insurers to issue and distribute policies digitally, with FRA approval and FinTech compliance. Premiums must be paid directly to insurers, not collected by marketing partners. Insurers must submit a digital issuance plan, and contracts must link to FRA databases, with added customer protection and guidelines for digital marketing partners.