The Financial Regulatory Authority (FRA), chaired by Mohamed Farid, issued Decision No. (19) of 2023 regarding the commitment of insurance companies to provide the necessary technological infrastructure to link their database with the Authority’s database.
The first article of the aforementioned decision obligated the insurance companies to provide the necessary technological infrastructure to link their database with the Authority in accordance with the controls set by the Authority in this regard. The decision also obligated the insurance companies to make available a number of data through the electronic systems being prepared, namely: contracting with them and reasons for refusal, data on defaulted customers and those who stopped paying loans in cases of credit insurance, special data on the issuance record, including data on issuance, modification and cancellation of documents, issuance settlements, and collection of installments, data on the compensation record, including notification data, and compensation payment and their settlement, data related to the allocated funds record (linking funds of all kinds, funds revenues and expenses related to funds), data related to the record of reinsurance agreements, the record of optional operations, credit and debit reinsurance balances, data of the company’s headquarters and branches, in addition to any other data required by the Authority.
The decision included that the data and information of the above clients and companies be confidential and may only be made available to the Authority, and the Authority shall set the controls for dealing with them.
According to the second article of the decision, the insurance companies that are addressed by the provisions of this decision are granted a period of six months to reconcile their positions in accordance with its provisions, and it is permissible from this period for another six months with regard to items (3) (4) (5) (6) mentioned in the first article of this decision, and that In light of the justifications provided by the company and accepted by the Authority.
Farid said that insurance companies are required to work on developing their technological infrastructure in order to meet the requirements of the decision, which aims to link the companies’ database with the Authority’s data, so that the Censor can study and analyze all indicators that enable him to make regulatory and development decisions supported by updated indicators.
He added that the insurance sector is among the most important non-bank financial activities that support the gross domestic product, as it contributes to managing the risks to which economic assets are exposed, which makes it one of the most important tools to support the stability of these sectors and the continuity of their activities, and that the Authority seeks to achieve advanced targets in the results of the insurance companies’ business to double their contribution to the GDP, as the FRA works to keep abreast of global developments in the industry.
Farid stressed the importance of insurance companies developing the necessary technological infrastructure to link their database with the Authority’s database, which is one of the ways to develop the regulatory and regulatory frameworks to facilitate follow-up and electronic control, which speeds up the pace of work necessary to examine companies through the speed of data availability, enabling the Authority to view He stressed that the data and information of clients and companies are confidential and may only be made available to the Authority.
He added that the development of the technological environment for insurance companies increases operational efficiency and the ease of issuing insurance policies, contributing to the speedy termination of compensation in a way that supports customer confidence in the insurance sector, indicating that financial technology helps insurance companies in electronic marketing, reduce the cost of distribution and attract new customers to achieve growth targets in the insurance sector at all levels.
