Page 124 - September 2022 Issue 610

ø``«`eÉC ```J
New Proposed Regulatory Reforms and
Innovations Towards the 2030’s Vision
Written by : Kareem M. Awad
Section Head_ Property Department – gig Insurance Egypt
It is clear from the previous experiences of the Arab markets towards
making some reforms to the regulatory and supervisory rules of the
state’s insurance laws, in order to face challenges, opportunities and
changes in the economic conditions, as well as keep pace with tech-
nological developments as part of the economic reform programs in
the region, which are recently pursued by many governments towards
the 2030 growth vision .Possibly, the aforementioned changes and
developments are not optimal enough due to changes of current and
prospective economic, social and technological, which are consistent
with the strategies of global sustainable development. Due to this,
most insurance regulators in the region adapted strategies that sup-
ported innovation and used technological business models and solu-
tions to improve the results of non-banking activities, which contribute
effectively to achieving the goals of financial inclusion and sustainable
development. Hence, all insurance regulators in our region must step
towards developing the regulatory and supervisory structure and
inventing new business models through the following ideas:
Approach the Digitalization and Insurtech Strategies through encour-
age investment in digitalization and digital products, approach use a variety
of new techniques such as awareness programs and regulatory and super-
visory technology in order to facilitate non-financial transactions. This
approach includes the use of modern technologies drivers such as big data,
cloud computing, internet of things, block chain, and artificial intelligence
mechanisms to create new business models such as autonomous cars,
smart homes and mobile application, in addition it will be worthy to facilitate munities beside their core role to protect and indemnity of the policy holders.
the existing business such as smart wearable watch in health insurance
which will reflect on attract new customers.
Approach New Strategies and Business Models for the Financial
Inclusion through coordination with banks to setup new policies and strate-
gies that aim to attract new customers will be attracted for both sectors and
new digital insurance programs will be developed to fit their needs.
Apply for the Global Financial Codes and Standards by using
smart statistical models and new work techniques that rely exclusively
on artificial intelligence for operating data, detecting fraud and forgery,
and imposing new rules to follow the financial standard Solvency II for
all insurance companies operating in the market in order to increase
efficiency, effectiveness and competitiveness among insurance com-
panies, by analyzing capital requirements, risk management and com-
pliance with regulatory requirements.
Respond to the New Emerging Risks in order to respond to global
new emerging risks which effect on the social and business results, In
terms of Climate Change which shown on to long-term shifts in tem-
peratures and weather patterns, therefore the regulators take the ini-
tiative to approach new strategy to in order to adapt and capitalize on
this challenge through joined-up policy making to put climate risk mod-
els at the heart of national adaptation strategies ,using technology
models to predict and respond to weather change, invest in open-
source models that provide a long-term view of climate risk and inte-
grate with the insurance solutions. In terms of Cyber Risks, due to the
increased reliance on digital platforms and the use of technology, it is
imperative that cybersecurity practices, awareness and culture pro-
grams on cyberthreats, and specialized computer programs for data
protection be implemented, approach specific security management
standards , in addition encouraging insurance companies and cus-
tomers to purchase mandatory cyber insurance , as well as a trend to
establish a national cloud computing platform to handle public repre-
2022 (ȪàÑ°S) ∫ƒ∏jG - 610 O~©dG - ájOÉ°üàb’G ¿É«ÑdG
sentations and complaints across all sectors and industries. In terms of
Natural resources management, as population increases, shortages of
food, water and energy, climate change and its negative consequences are
contributing to the pressure on natural resources, which has led to the devel-
opment of technology and dependence on sustainable markets for renew-
able energy, environmental goods and services, and green infrastructure
that contributes to a greener economy.
Development of Risk Management and Finding New Innovative
Insurance Solutions, due to poverty and financial risks were shown by the
increase in unemployment ,interest rates, energy prices, and the reduction
in sales for almost global economics, which sparked the development of the
term sustainable development, which seeks to improve living conditions for
all individuals without increasing the use of natural resources, resulting in
economic growth, natural resource conservation, environmental protection,
and social progress under global framework for sustainability which is one of
the Financing Initiative of United Nations Environment Program, The insur-
ance regulators have re-strategies of many business models according to
the goals of Sustainable Insurance by preparing many insurance pro-
grams for low-income families through tailored insurance policies for small
and medium businesses, livestock, poultry, fish farms and health care pro-
grams, as well as critical disease treatment., in addition provide insurance
programs to those with low incomes and those with poor education to guar-
antee the provision of quality education and life. Furthermore, many of the
insurance companies’ investments go towards infrastructure and poor com-
Anti-Money Laundering and Terrorist Financing, through develop
new techniques aims to detect money laundering and terrorist financ-
ing that are consistent with the national objective of financial inclusion,
without any amendments of existing procedures for combating crime,
as well as enhance our capacities for measuring illegal financial flows
through a specialized team. Furthermore, developing effective super-
visory practices to combat the phenomenon of greenwashing in coop-
eration with the United Nations Conference, and fighting money laun-
dering and terrorist financing risks.
Development of Regulatory Framework, one of the important new
proposals is to review the minimum capital requirements due to infla-
tion and interest rate increases in order to ensure that insurers can ful-
fil their obligations and comply with international financial standards.
Additionally, arrange for regulatory issues that allow for the expansion
of insurance sales channels by entering nearby sectors to promote
insurance products through for example banking and telecommunica-
tion sectors in order to reach new segments of the market.
The regulatory development agenda will also include topics such as
Consumer Protection, Data Focus, Privacy, and Cybersecurity to
ensure integration with existing and potential customer portals,
advanced modelling techniques as well as eliminate any threats, deter-
mine whether data is used properly, with permission, and is well guard-
ed and secure. Furthermore, setup several regulations and rules
through the regulator to enhance the digital environment such as oblig-
atory online or credit cards payment as per the Electronic Payments
and Receipts Law, remote working rules and reduce the dependence
of the traditional ways of working.
Eventually the Regulators in our region will focus their attention on
Environmental, Social, and Governance issues as well as the Digital
Asset Ecosystem due to their anticipated growth and the potential neg-
ative effects of climate change on economy and insurance companies.
120