Online transactions through the Internet and the use of mobile applications need a new legislative framework to keep pace with the rapid digital development, says insurance expect Mohamed El-Morsy.
He stressed that the need is urgent especially in light of the COVID-19 pandemic that has contributed to acceleration in digitalisation, reported Youm 7. Insurance companies are developing their technological infrastructure, using social networking applications on the Internet to hold meetings with their employees, and interacting with customers without the need for direct interaction, in line with precautionary measures to curb the pandemic.
He said that a set of new laws is required to allow insurers to offer services such as the ability to approve and issue insurance online, in addition to collecting premiums. Online systems will smoothen and quicken procedures at insurance companies, shortening the time to issue policies, customers using electronic signatures, paying compensation – without the need for the customer to visit the insurance company.
Virtual corporate activities
The authorities are also concerned with setting rules and controls for digital transformation in the sector, including the use of information technology in holding general assemblies, meetings of directors and voting procedures.
Regarding digitalisation in the insurance sector, the final draft of a new insurance law provides for digital transformation in the insurance sector. The provisions include allowing insurance companies to issue digital policies for certain classes of business and setting out requirements for insurers in creating websites or providing any electronic services including cloud computing.
The new insurance Bill is being prepared for submission to the Council of Ministers and then to Parliament for a vote.