The Insurers Federation of Egypt (IFE) has revealed that it is considering issuing new types of insurance policies, including pay-as-you-drive (PAYD) insurance and smart car insurance.
In its weekly bulletin released on 6 July 2025, the Federation says that introducing the new products is part of its efforts to provide innovative insurance solutions that keep pace with evolving vehicle usage.
The ultimate goal is to reduce road accident rates by linking insurance premiums to driver behaviour and usage, in addition to leveraging smart car technologies to enhance traffic safety.
The IFE emphasises the importance of expanding the use of modern technology, such as remote driver behaviour monitoring systems and usage-based insurance, due to their direct impact on improving driver behaviour and contributing to lower accident rates. To this end, the Federation has issued insurance policies for electric vehicles, both private and commercial.
The IFE also supports collaborative efforts between insurance companies and relevant government agencies, such as the Traffic Department and the Financial Regulatory Authority, to exchange and analyse data to develop more effective traffic prevention policies.
The Federation adds that compulsory motor third-party liability insurance is not limited to financial compensation for those hit in accidents; rather, it constitutes a tool that contributes to deterrence and compliance with traffic regulations through pricing mechanisms linked to driving behaviour.