The Egypt Financial Regulatory Authority has issued new rules governing microinsurance, establishing a clear definition of the activity and setting conditions for offering and operating microinsurance products, including requirements on product design, underwriting, distribution and regulatory reporting. Microinsurance is defined as insurance services targeting low-income individuals, with premiums proportionate to the insured risk and a maximum coverage limit set by decisions of the FRA’s board, with the authority noting a recent increase in the cap to EGP 390,000. The framework specifies the insurance classes that may be offered under microinsurance across persons and funds formation and property and liability lines, and introduces standards aimed at simple policy wording, transparent marketing, flexible premium collection, technology-enabled distribution and claims handling, a simplified complaints mechanism and a prohibition on charging insureds amounts beyond premiums and legal fees. It also requires an approved underwriting policy and pricing basis, verification of customer data, a decision on claims within five business days of complete documentation and payment of compensation within two business days of claim approval; digital marketing and distribution are permitted through specified channels including digital insurance brokers, banks registered with the Central Bank of Egypt, Nasser Social Bank, Egypt Post, telecom companies, the Agricultural Bank of Egypt and licensed microfinance entities. Insurers must submit quarterly activity reports to the FRA and implement ongoing training for staff and intermediaries and financial literacy and insurance awareness programmes for target groups. The rules take effect from the day after publication in the Official Gazette, give existing insurers six months to regularise their position and repeal any conflicting provisions.
Egypt Financial Regulatory Authority 2026-02-05
Egypt Financial Regulatory Authority issues microinsurance rules with five-day claims decisions and a six-month compliance window
The Egypt Financial Regulatory Authority has introduced new microinsurance rules, defining it as insurance for low-income individuals with a coverage cap of EGP 390,000. The framework mandates clear policy wording, transparent marketing, flexible premium collection, and technology-enabled distribution, while prohibiting charges beyond premiums and legal fees. Insurers must adhere to specific underwriting, reporting, and claims processing standards and provide ongoing training and financial literacy programs.