Egypt: Regulator mulls letting e-payment companies distribute insurance products
Source: Middle East Insurance Review | Jul 2018
The Financial Regulatory Authority (FRA) has started to look into mechanisms that will enable it to achieve its strategy of doubling the premiums of the insurance sector over the next four years. It is considering deepening cooperation between insurers and e-payment companies by allowing the latter to distribute insurance policies, instead of merely collecting premiums.
The move would facilitate customers’ access to insurance, reduce costs for insurers and increase revenue for insurers and e-payment agents, reported Al Masry Al Youm.
Mr Reda Abdel Moaty, FRA vice chairman said, “The Authority is currently considering allowing electronic-payment companies to promote and sell standard insurance policies, especially compulsory vehicle policies.”
He added that the current cooperation between the insurers and e-payment companies consists of the collection of premiums, but the Authority is seeking to elevate this cooperation to the next level by allowing e-payment companies to issue insurance policies. The policies to be distributed through this channel would not have complex technical rules for issuance.
First electronic platform for insurance data exchange launched
The Authority had earlier launched an electronic platform in cooperation with Insurance Federation of Egypt (IFE) for the exchange of insurance data and information.
In a statement, FRA chairman Dr Mohammed Omran said the electronic platform is the first step in establishing the first integrated database for various insurance activities. It is part of the framework of activating the FRA’s strategy of supervising non-bank financial markets using information technology.
Dr Omran said there are plans to develop the insurance sector in order to enable it to carry out its vital economic role in mobilising national savings and investment, a factor which would subsequently raise the national employment rate. M