The Financial Regulatory Authority (FRA) has required life insurance companies to obtain a credit report for any applicant seeking an individual life insurance policy worth EGP 10m or more, or the equivalent in foreign currency, as part of new risk management standards aimed at strengthening underwriting decisions and enhancing protection for policyholders.
The requirement is included in the risk management standards governing the underwriting of individual life insurance business, set out in FRA Chairperson’s Decision No. 2036 of 2026, which was recently published in the Egyptian Gazette. The decision grants insurance companies a three-month grace period to comply with its provisions from its effective date of 16 July 2026.
The new regulations update the risk management standards previously introduced under Circular No. 8 of 2024 and require insurers to obtain credit reports from licensed credit information providers whenever an applicant’s income, profession or occupation appears inconsistent with the value of the policy or the premiums payable, or when there are doubts regarding the legitimacy of the insurance application.
The decision also requires insurers to verify applicants’ identities and the authenticity of supporting documents, obtain accurate information on their health and financial status, and establish internal policies and systems to monitor unusual insurance application patterns and analyse repeated insurance of the same risks. The measures are intended to strengthen underwriting practices, facilitate the early detection of fraud, and improve overall risk management.
In addition, insurers must develop policies and systems to assess whether the policy value, insured amount and the applicant’s income are consistent with the company’s historical averages for comparable risks within the insured person’s geographical area. They are also required to identify recurring risk patterns and prepare comprehensive assessments to verify the legitimacy of applications and reduce the likelihood of fraudulent activity.
Islam Azzam, Chairperson of the FRA, said that accurate risk assessment is a cornerstone of sound insurance underwriting and sustainable insurance operations. He noted that the standards introduced by the Authority will enhance insurers’ ability to identify risks proactively, combat fraud, protect policyholders, and ensure that insurance coverage is granted to eligible beneficiaries on sound technical and actuarial foundations.
Azzam added that the decision requires life insurance companies to notify the FRA immediately upon detecting fraud or attempted fraud during the underwriting process. Insurers must also incorporate the new standards into their underwriting policies, which they are required to maintain under the legislative and regulatory framework governing Egypt’s insurance sector.
He reaffirmed the Authority’s commitment to continuing the implementation of the Unified Insurance Law No. 155 of 2024, with the aim of encouraging insurers to innovate, diversify their product offerings, strengthen underwriting policies, and enhance the sector’s competitiveness, while increasing its contribution to Egypt’s economic development.
