Egypt’s Financial Regulator Bans Deductible Waivers in Credit Insurance Policies

Egypt’s Financial Regulatory Authority has issued a decision updating underwriting and pricing rules for credit and guarantee insurance policies, including a ban on waiving the deductible in credit insurance cover.

The decision was issued by Dr Islam Azzam, chairman of the authority, as part of a comprehensive revision of the controls governing these policies.

The deductible is the share of an insured loss that the policyholder must bear. The prohibition prevents that share from being waived under credit insurance policies.

The update targets manipulation in the sector through tighter controls on how insurers assess risks and price coverage. The supplied summary did not specify an implementation date or detail the other revised requirements.