Insurance

Counselor Reda Abdel-Moaty to “Businessmen”: The Egyptian market is preparing for a new qualitative shift that keeps pace with global trends

مستشار رضا عبدالمعطي Reda Abdel-Moaty’s Adviser

Iman Al-Wasili

Counselor Reda Abdel Moati, Vice Chairman of the Financial Supervisory Authority, revealed in exclusive statements to “ Businessmen “About the Authority’s start of setting executive controls for the establishment of non-bank financial companies wishing to use financial technology in their activities, including digital insurance companies, and that the Authority recently issued controls Incorporation and licensing of these companies, adding that the authority is working during the current period to prepare and issue digital identity controls, and know your customer electronically for these companies, in preparation for submission to the authority’s board of directors.

Counselor Reda Abdel-Moaty clarified that these controls will include specifying How to identify the customer electronically, whether through an electronic signature or a variable password (

OTP

), and that this will be done in coordination Cooperating with the Ministry of Justice to prevent any interactions when settling disputes between insurance companies and clients.

In response to a question by “ (Businessmen

” Counselor Reda Abdel Al-Maati: The law regulating and developing the use of financial technology in non-banking financial activities recently issued by the President of the Republic allows the authority to establish “digital” companies in non-banking financial activities, including insurance. He also added that the new unified insurance law, after its issuance, will be the main regulator for the activity of insurance companies. The work mechanism of these companies will be in accordance with the executive regulations that are being finalized to organize the work of these companies. and some of the detail.. Counselor Reda Abdel-Moaty said in response to a number of questions we asked him: The implementation of this will require a digital transformation of the Authority’s activity in order to control and supervise insurance companies digitally and electronically, and that Law No. 5 of the year

Concerning the regulation and development of the use of financial technology in non-banking financial activities, which was issued by the President of the Republic last February, aims, in accordance with his explanatory memorandum, to enhance the use of the Financial Supervisory Authority as the supervisory authority on entities that engage in non-bank financial activities of technology. Modern and innovative in order to facilitate its performance of its supervisory role over Subject Entities with regard to compliance with standards of transparency and governance, and the law aims to enhance financial inclusion.

To obtain a license to engage in non-banking financial activities through financial technology techniques, Abdel Moaty said, several conditions must be met, including: that the company’s work be limited to the practice of licensed activities, and specify the structure of direct and indirect ownership and the arranged parties. and that the company has the equipment, technological infrastructure, information systems, means of protection and insurance necessary to conduct the activity in accordance with the requirements set by the authority. In the conclusion of his statements, Counselor Reda Abdel-Moaty confirmed that the law entrusted the board of directors of the Financial Supervisory Authority the right to issue controls for verification of digital identity and controls Digital contracts, standards for creating, licensing, and controls for the work of the digital record and the technology for securing the data recorded therein.