The Financial Regulatory Authority (FRA) held a workshop to prepare for the issuance of a new law regulating and developing the use of financial technology in non-banking financial activities, as well as the unified insurance law.
During the workshop entitled “Legislation for Creative Ideas in the Insurance Field”, Hisham Ramadan, Deputy Chairperson of FRA, said the new law aims to enhance the use of modern and innovative technology (SupTech and RegTech) in order to facilitate FRA’s oversight role over financial entities regarding compliance with transparency standards, protecting the rights of insurance policyholders, and facilitating access to insurance products. Consequently, this would lead to enhancing the digital transformation of the insurance sector and achieving insurance inclusion.
He pointed out that the conditions that the world has experienced in light of the pandemic and applying social distancing rules have led businesses in general to accelerate the implementation of digital transformation programs and remote work. Insurance is one of the vital activities of the economies of countries. It contributes to risk management and mobilization of savings at a national level. Companies must comply with the new labor standards. Also, the regulatory authorities must have their control and supervisory rules flexible and compatible with those standards, allowing the use of technology to achieve the set goals.
Ramadan emphasized to the participants in the workshop that the utilization of financial technology within the insurance activity has attracted the attention of the Authority. It is implementing two integrated projects at the same time. The first is using business documents from an international consulting body on the opportunities and challenges from mobile insurance applications and how to manage the relationship and coordination between various authorities. The second project, which was called “Regulation for Innovation”, involves reviewing the experiences of international markets regarding the rules for regulating and controlling the use of technology in the area of insurance. The aim is to identify opportunities and challenges and build a flexible control system that contributes to promoting digital.