The Financial Regulatory Authority has introduced new requirements for life insurance companies to obtain credit reports on applicants for high-value policies. The rules form part of updated risk management standards and took effect on 16 July 2026.
The Financial Regulatory Authority 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. 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. They 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.
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.