The draft law, which was referred by the House of Representatives, was approved by the Senate's Financial and Economic Affairs Committee on 13 February.

A report prepared by the committee said the draft "Unified Insurance Law" aims to draw up new and comprehensive rules for regulating the insurance industry and market in Egypt.

“Four decades of actual implementation show that the insurance market is in pressing need for new legislative and regulatory rules,” said the report, adding that “technological developments and the creation of new insurance tools also require that a unified insurance legislation be passed.”

The report indicated that the new government-drafted Insurance Law is also necessary to cover a new group of professions and services related to the insurance industry.

“In this respect, the new law aims to cover the rights of holders of insurance policies and private insurance funds,” said the report, adding that “the law also seeks to streamline insurance rules to go in line with new international standards, as well as speed up digitization reforms and the use of financial technology in the insurance sector.”

The report also indicates that “the law aims to widen the scope of obligatory insurance operations in order to achieve insurance inclusiveness and reach out to poor and limited income classes which are not currently covered by any kind of insurance, particularly health insurance.”

The report revealed that Egypt's insurance sector includes 41 companies which collect EGP 47.5 billion in insurance installments a year, and pay EGP 33.5 billion in insurance compensation.

"The net investments of insurance companies have reached EGP 131.466 billion in July 2021, in addition to the fact that there are 692 insurance funds which collect EGP 10.5 billion in annual subscriptions, pay EGP 9.9 billion in compensations, and have EGP 85.61 billion in investments," said the report, adding that "these figures show that Egypt has a thriving insurance market but it has to be effectively regulated and supervised."

The report concludes that the new Unified Insurance Law will cover all kinds of insurance operations.

"This law will regulate insurance companies, special funds, obligatory operations such as highway accidents, as well as state new supervisory rules for the insurance industry," said the report, adding that "at the end we will have a unified law that will regulate all forms of insurance in Egypt in line with international rules and methods and impose stricter supervision."