Egypt's Financial Regulatory Authority (FRA) has issued a mandate requiring companies operating in the consumer finance sector to provide insurance coverage for clients.
This move strengthens protection for users of non-banking financial services, supports financial and social stability and enhances integration within the non-banking financial sector, according to an article on news platform Zawya.
Under Board Decision No 28 of 2026, consumer finance companies must insure clients who obtain financing up to the age of 65, against risk of death from any cause and total permanent disability, said the article.
“The sum insured must be equivalent to the client’s outstanding financing balance,” stated the article.
“The decision also permits coverage for clients over the age of 65, subject to agreement between the insurance company and the consumer finance provider.”
The FRA’s decision further obliges life insurance and capital formation companies to “adopt a unified insurance contract template to cover clients of consumer finance firms”. It also noted that insurers and consumer finance firms have been granted a six-month grace period to align with the new requirements.
“The unified contract stipulates that the consumer finance company will act as the policyholder, while the life insurance company will act as the insurer,” said the article.
“Insured clients are to be accepted automatically, without individual underwriting procedures.”
Commercial courts shall have jurisdiction over any disputes arising from the implementation or interpretation of the contract’s provisions.