Dr. Islam Azzam, Chairman of the Financial Regulatory Authority, delivered the opening speech at the 52nd African Insurance Organization (AIO) Conference, hosted by Cairo and organized by the Federation of Egyptian Insurance Companies, with broad participation from insurance industry leaders, regulatory bodies and experts from various African countries.

The conference was attended by Dr. Mohamed Farid, Minister of Investment and Foreign Trade, who delivered a keynote address on behalf of Prime Minister Dr. Mostafa Madbouly, Dr. Ahmed Rostom, Minister of Planning and Economic Development, Ambassador Mohamed Abu Bakr, Deputy Minister of Foreign Affairs for African Affairs, Dr. Yared Mola, President of the African Insurance Organization, Mr. Alaa El-Zohairy, Vice President of the Organization and Chairman of the Federation of Egyptian Insurance Companies, along with heads of insurance and reinsurance companies and representatives of African financial and regulatory institutions.

Dr. Islam Azzam stressed that insurance is one of the most important tools for economic and social empowerment and supporting stability for individuals and institutions, noting that the conference is being held in conjunction with the passing of about two years since the issuance of the Unified Insurance Law No. 155 of 2024, which views insurance as an engine for comprehensive economic growth.

He said that the Egyptian insurance industry is witnessing an important transformation phase aimed at enhancing financial inclusion and expanding the scope of social protection through microinsurance and insurance products directed to owners of small and medium enterprises, professionals, workers and employees in the agricultural and animal production sector, which contributes to enhancing economic and social development and improving the ability of citizens and productive activities to face various risks.

The head of the authority pointed out that the Egyptian market has great opportunities for growth, in light of the new legislative and regulatory framework, and the available potential for expansion and reaching new segments of citizens, noting that the weak rates of insurance penetration represent a common challenge in the African continent, where the rate does not exceed 3% in most African countries, with the exception of South Africa, where it reaches about 12%.

He stressed the importance of intensifying efforts to spread insurance culture and awareness to change this reality, and the Authority’s continued support for initiatives organized by the Federation of Egyptian Insurance Companies to inform citizens about the importance of insurance and its role in achieving financial and social stability, in parallel with the need to develop new products that are more related to citizens’ concerns and needs.

As part of the digital transformation efforts, Dr. Islam Azzam explained that the Authority has provided a flexible and stimulating regulatory environment for the use of financial technology and digital solutions in the insurance sector, through the issuance of regulatory decisions that obligate companies wishing to conduct their business digitally to provide the necessary technological infrastructure and apply the highest cybersecurity standards.

He stated that the Authority has so far approved two companies to offer their products using financial technology, including issuing insurance policies via mobile applications, digital verification of customer identity, fulfilling “Know Your Customer” procedures electronically, and concluding and registering digital contracts electronically, noting that more than 10 other insurance companies have submitted applications to issue their policies digitally via electronic applications.

He also spoke about the role of the FRA Regulatory Sandbox, which has so far received two projects to employ technology in improving the accuracy of risk and damage assessment and accelerating compensation procedures, expressing continued welcome for innovative ideas that contribute to the development of the sector and reach wider segments of beneficiaries.

The head of the authority explained that current indicators confirm the market’s need for more insurance products, and for this purpose, during the past two years, it issued about 80 executive decisions for the unified insurance law with the aim of building a flexible regulatory framework that is consistent with best international practices, which enhances the efficiency of the sector and its attractiveness to investors and customers, while adhering to the highest standards of governance and risk management.

Dr. Islam Azzam highlighted the Authority’s completion of the regulation of a number of basic professions related to insurance activity, including actuaries, insurance consultants, and insurance and reinsurance brokers, in addition to continuing the dialogue with workers in the sector, unions and companies to support capacity building and human skills development through the organization of advanced training courses at home and abroad.

Regarding the development of specialized activities, he said that the Authority issued new regulatory standards for reinsurance, and for the first time set controls and standards for registering General Management Agents (MGAs), and completed the preparation of the regulatory framework for specialized medical insurance companies and the management and governance of healthcare programs, as 6 companies obtained temporary licenses to practice the activity, while 4 companies applied to obtain the final license.

He also noted the Authority’s approval of the establishment of two new companies to conduct microinsurance activities, with a third application currently under review, which will contribute to expanding the base of beneficiaries of insurance services.

He added that the Authority has worked to diversify the distribution channels for insurance products through the post office, banks, online stores and telecommunications companies, in addition to traditional channels, explaining that about 11 insurance companies currently market their products through the branches of 30 banks nationwide.

He stressed the importance of strengthening the financial solvency of insurance companies as one of the main pillars of the Authority’s work, through developing rules for calculating technical provisions and reserves, increasing capital by about 10 times, and applying the International Standard IFRS 17 to enhance transparency and disclosure and unify accounting practices for contracts, as well as decisions aimed at improving risk management.

He noted the great importance that the Authority attaches to protecting the rights of customers and promoting balance among all parties in the market, as it has issued specialized controls to examine customer complaints and provide effective mechanisms to ensure that citizens receive their rights and the services they are entitled to.

Dr. Islam Azzam announced that the Authority is currently studying the implementation of a project for full electronic linkage between it and all non-banking financial sectors through an integrated digital system that allows for advanced data analysis and contributes to facilitating procedures and raising the efficiency of supervisory and regulatory services.

He concluded his speech by expressing the importance of strengthening cooperation and integration between African markets and exchanging experiences and successful practices, which supports the development of the insurance sector in the continent and enhances its contribution to achieving sustainable economic and social development and the goals of Egypt’s Vision 2030.