The Applications Review Committee for Financial Technology at the Financial Regulatory Authority (FRA) has granted preliminary approval for two new projects to join the FRA Sandbox, the Authority’s regulatory testing environment for fintech applications, to pilot the use of artificial intelligence in insurance services.
The move forms part of the FRA’s ongoing efforts to foster innovation and support fintech applications across non-banking financial activities by enabling companies to test innovative solutions in a controlled regulatory environment before their commercial launch.
The preliminary approval covers a project submitted by EG InsurTech for Electronic Applications, Systems and Software Services, in partnership with Assurex Insurance Brokerage, to test Ameen, an AI-powered assistant designed for insurance platforms.
The FRA also approved a project submitted by Allianz Egypt Insurance, in collaboration with Olimi, to test an AI-powered Voice Agent and Chatbot Platform aimed at enhancing customer interaction and service delivery.
Islam Azzam, Chairperson of the FRA, reaffirmed the Authority’s commitment to providing institutional and technical support for innovative technological solutions that contribute to the development of non-banking financial activities. He said the initiative reflects the FRA’s role in creating a flexible regulatory environment that keeps pace with global advances in financial technology and artificial intelligence, while safeguarding market stability and protecting the rights of all stakeholders.
Azzam highlighted the importance of supporting projects that improve communication between financial institutions and their customers through digital applications, while maximising the use of AI tools to analyse customer behaviour, preferences, complaints and demand for different products. He noted that such technologies can generate valuable insights that enhance service efficiency and customer engagement, while helping clients identify the insurance coverage best suited to their needs.
Ahmed Khalifa, Executive Director of the FRA Sandbox, said the preliminary approval of the two new projects brings the total number of initiatives accepted in principle since the sandbox’s launch to seven within a single year.
He said the milestone underscores the Authority’s commitment to fostering technological innovation by providing a secure regulatory environment for testing innovative financial solutions, accelerating digital transformation and promoting financial inclusion.
Khalifa added that the initiative also strengthens insurance companies’ operational capabilities and improves the efficiency and accessibility of their products. He noted that the insurance sector accounts for the largest share of projects submitted to the regulatory sandbox.
Before approving the two latest projects, the FRA had granted preliminary approval to five other initiatives, including projects by GIG and Orient, in partnership with EG InsurTech, in the insurance sector; Cassbana in the field of digital brokerage for microfinance; and Lumin Soft, in collaboration with Azimut, to test an electronic passport-based identity verification solution for foreign nationals.
Since its launch, the FRA Sandbox has also provided regulatory guidance to around 40 companies by assessing proposed business models, offering tailored technical and regulatory support, and raising awareness of the admission criteria and regulatory frameworks governing non-banking financial activities.
In addition, the sandbox has organised a series of workshops and seminars to promote cybersecurity awareness and support the digital transformation of non-banking financial services, reinforcing the FRA’s broader strategy to encourage responsible innovation while maintaining effective regulatory oversight.
