The Financial Regulatory Authority (FRA) is studying the expansion of the electronic payments system in the insurance sector to facilitate payment of claims and benefits to customers and to enable online collection of premiums.
Mr Reda Abdel Moaty, FRA vice chairman, said that the regulator is looking at mechanisms for electronic collection of insurance premiums, as well as settling payments due to service providers, especially in the medical insurance branch, according to local media reports.
He added that the vetting of medical insurance documents, approvals and medical expenses due to service providers such as hospitals, laboratories, radiology centres, etc, has been affected in the pandemic because of the restrictions and precautionary measures taken by the state and companies to curb the spread of COVID-19, including reduced operating hours and allowing employees to work from home.
Some insurance companies have already shifted to electronic collection of premiums by working with online payments companies, using credit and debit cards, as well as adopting mobile wallets.
At the same time, the FRA is encouraging insurance compensation to be paid electronically, transferring funds directly the customer’s bank account instead of dealing with cheques, so as to reduce the use of physical cash.