Financial Regulatory Authority mandates pricing regulations for insurance companies

CAIRO - 18 Septemer 2023: In an effort to ensure fair competition and protect policyholder rights, the Financial Regulatory Authority (FRA) has mandated insurance companies and cooperative insurance societies to price their insurance policies. This decision underscores the FRA's commitment to maintain market discipline and promote transparent pricing practices within the insurance industry.

Chairman of the FRA, Mohamed Farid, emphasized that this new requirement is part of the FRA’s ongoing efforts to enhance fair competition and safeguard the financial positions of insurance companies. By ensuring disciplined pricing processes, the FRA aims to create an environment that fosters healthy competition and upholds the interests of policyholders.

This regulatory measure aligns with the FRA's broader goals of boosting market efficiency, protecting competitiveness, and promoting fairness in dealing and pricing. The FRA recognizes the importance of maintaining the stability and integrity of the insurance market while safeguarding the rights of both insurers and policyholders.

In addition to the pricing regulations, the FRA has also taken steps toward digital transformation in the non-banking financial sector. This strategic decision aims to leverage technology's potential to advance the government of Egypt's vision of achieving financial inclusion and empowering diverse segments of society by offering non-banking financial services.

The digital transformation initiative encompasses three resolutions. The first, Resolution 139, establishes requirements for equipment, technological infrastructure, information systems, and security measures, including insurance coverage. This ensures that companies in the non-banking financial sector have the necessary tools and safeguards in place to operate digitally.

The second resolution, Resolution 140, focuses on regulating the requirements for digital identity, digital contracts, and digital records. This framework aims to facilitate secure and reliable digital transactions, providing a solid foundation for the expansion of digital financial services.

Lastly, Resolution 141 enables the creation of a registry to register outsourcing service providers. This registry will enhance transparency and accountability in the outsourcing of non-banking financial services, contributing to the overall integrity and efficiency of the sector.

The FRA's comprehensive approach to pricing regulations and digital transformation signals its commitment to fostering a robust and inclusive financial landscape in Egypt. By enforcing fair pricing practices and embracing digital advancements, the FRA aims to promote a secure and competitive environment that benefits both consumers and financial service providers.