In a landmark decision for Egypt’s financial services sector, the Financial Regulatory Authority (FRA) has approved the establishment of the country’s first company dedicated to micro-insurance. This move is part of a broader initiative that also saw the FRA grant licenses to a new real estate finance startup and a consu
er finance startup, signaling a significant push towards integrating technology into the non-banking financial system.
The recent approvals underscore the readiness of Egypt’s technological and regulatory infrastructure to support innovative financial services. The FRA has emphasized that all newly licensed companies must adhere to specific technological and organizational requirements designed to expand access to financial services for all Egyptians.
Paving the Way for Financial Inclusion
The creation of the first specialized micro-insurance company is a direct outcome of the new Unified Insurance Law (No. 155 of 2024). This legislation includes a dedicated chapter that establishes the legal framework for micro-insurance firms, empowering them to develop innovative products tailored to the needs of lower-income communities.
The law aims to facilitate the expansion of insurance coverage for micro-loans and encourage the introduction of new, accessible insurance products, thereby deepening financial inclusion across the country.
A Dedicated Fintech Committee
These regulatory advancements are being steered by the “Committee for Deciding on Requests to Use Financial Technology in Non-Banking Financial Activities,” established under FRA Decision No. 3196 of 2023. This committee is tasked with evaluating and approving applications from companies looking to leverage fintech in non-banking financial activities.
Its responsibilities include overseeing the licensing of fintech-powered startups, managing the registration for outsourcing services, granting temporary licenses to emerging fintech companies, and proposing regulatory updates to further develop the fintech ecosystem.
About The Financial Regulatory Authority
The Financial Regulatory Authority (FRA) is the primary regulator of the non-banking financial services industry in Egypt. Its mandate is to ensure market stability, protect the rights of stakeholders, and foster a competitive and transparent non-banking financial market to support the growth and development of the Egyptian economy.
Source: Al-Saleh News
