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    HomeGovernance, Policy & Regulations ForumPolicy & Regulations ForumWill Egypt’s New Insurance Rules Spark an Insurtech Revolution?

    Will Egypt’s New Insurance Rules Spark an Insurtech Revolution?

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    Egypt’s Financial Regulatory Authority (FRA) has been on a regulatory spree. In a country where insurance has often played second fiddle to cash and informal alternatives, the FRA is now asking the sector to trade in its dusty files for encrypted servers. The latest string of decisions could finally make Egypt ripe territory for digital-first insurance ventures. 

    The newest decree, Decision №62 of 2025, mandates insurance entities to establish official websites — complete with accessibility standards, live support channels, cybersecurity protocols, and, of course, a prominently displayed FRA license number. It’s not just about optics: these sites must feature responsive design, WCAG accessibility, real-time support, and SEO, as well as annual penetration testing and ISO 27001-aligned security.

    The move is part of the implementation of Egypt’s Unified Insurance Law №155 of 2024, a sweeping piece of legislation meant to modernize the sector. Dr. Mohamed Farid, who chairs the FRA, appears keen to leave no stone unturned — from digital UX to branch expansion quotas.

    Digitise or Disappear

    Insurers and brokers now have just three months to comply. Any company with EGP 10 million (~$210,000) in assets must launch a compliant website or risk running afoul of the law. Those with less than that — and even individual brokers — are merely invited to participate, though the writing on the firewall is clear: digitize or be sidelined.

    The new regulations also allow insurers to outsource website development, provided the contractor is registered with the FRA and the licensee still has technical capacity in-house. An outsourcing plan, reviewed by the FRA, is also required.

    On paper, it’s a long-overdue transformation. In practice, some startups are wondering if they’ve just been invited to a party. Building and maintaining an FRA-compliant website with multilayered security, round-the-clock support, and redundant server backups isn’t exactly pocket change — especially when licensing fees, insurance capital thresholds, and regulatory approval timelines are already considerable.

    A New Code for Insurance Brokers in Egypt

    The FRA didn’t stop at websites. Decision №69 of 2025 targets the insurance and reinsurance brokerage market, establishing a professional code and extending registration periods to five years. Brokers must now list themselves on an official FRA platform within 45 days. Companies are required to open at least two branches within three years — each led by a registered broker — and ensure their boards are stacked with members of “good character,” unburdened by criminal records or, more critically, employment at rival insurers.

    Foreign founders? Welcome — but only with written permission from their home-country regulators. And, in a move that stings a bit, the rules now explicitly forbid combining insurance and reinsurance brokerage under the same roof. Choose your niche — and stay in it.

    Interestingly, for the first time, freelance brokers can now apply to open an official brokerage office. But they must submit floor plans, staffing proposals, and declarations of innocence confirming no staff moonlight as unauthorized brokers. These approvals must be processed in just 10 days — optimistic, if not entirely implausible.

    Insurtechs: Green Light or Goose Chase?

    All this comes as Egypt tries to ride the continental insurtech wave — one that has been more trickle than tide so far. While countries like Nigeria and Kenya have pioneered regulatory sandboxes and aggregator models, Egypt’s shift marks a more top-down, compliance-heavy approach.

    But Egypt does have its champions. Payments giant Fawry has already issued 700,000+ digital insurance policies, recently partnering with GIG Insurance to launch Your Health Fawry, a medical micro-insurance product offering hospital cover and telemedicine via app. With backing from major health providers and payment rails, it’s a template for what’s possible in the space — assuming, of course, one has Fawry’s scale.

    Elsewhere in Africa, startups are cobbling together creative regulatory workarounds to operate. In Nigeria, where a new bill proposes a ₦25 million ($14,700) fine for unlicensed operators, digital brokers must rely on the country’s web aggregator framework — another workaround disguised as reform. This patchwork regulatory landscape leaves most startups perpetually hunting for loopholes and licenses, raising the question: is Africa’s insurtech revolution really a revolution, or just regulatory jazz hands?

    Egypt’s reforms may be heavy on compliance, but they offer something that’s sorely lacking in many African markets: clarity. Clear rules — even if rigid — are a starting point. The FRA’s timeline-driven implementation and push for cybersecurity, privacy, and consumer transparency at least offer a structured path forward.

    For now, the rules are on the table, the licenses are available, and the sector is — at least theoretically — open for (insurtech) business.

    The next move is up to the innovators.

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