Egypt’s FRA Reconstitutes Actuarial Committee to Update Life Insurance Mortality Tables
Dr. Islam Azzam, Chairman of the Financial Regulatory Authority (FRA), has issued a decision to reconstitute the Egyptian Committee responsible for constructing and studying actuarial tables for life insurance. The initiative is part of the regulator's strategy to modernize Egypt's insurance sector, enhance product pricing accuracy, and adapt to shifting market and demographic conditions.
Committee Composition and Mandate
Chaired by Counsellor Reda Abdel Moati, Senior Advisor to the FRA Chairman, the reconstituted committee includes FRA officials, managing directors of life insurance companies, and leading actuarial experts from across the Egyptian market. A specialized technical secretariat will provide actuarial support and operational assistance.
Under the decree, the committee is tasked with the following:
Data Audit & Analysis: Collecting, auditing, and reviewing actual mortality and disability data submitted by life insurers from 2022 (when Egypt’s first actuarial mortality table was issued) through the latest reporting year.
Comparative Benchmarking: Comparing actual historical experience against the baseline indicators set in the 2022 tables.
Technical Impact Assessment: Preparing a comprehensive study to assess whether the actuarial tables require a full or partial update, alongside evaluating the anticipated impact on product pricing.
Periodic Review Framework: Developing a future schedule for the periodic review and updating of Egyptian mortality tables in alignment with international actuarial standards.
Transitioning from Foreign Tables to Local Data
Dr. Islam Azzam highlighted that the introduction of Egypt’s first local actuarial mortality table four years ago represented a structural shift, ending decades of reliance by Egyptian insurers on British mortality tables.
"The 2022 tables significantly empowered life insurers to price their products with greater fairness and precision, while facilitating the launch of innovative coverage options offering broader protection to policyholders," Dr. Azzam stated.
He added that reconstituting the committee will allow the sector to capture the latest metrics regarding mortality and disability rates across different gender and age demographics. This will enable life insurers to keep pace with healthcare and social developments, refine risk-based pricing, introduce tailored products, and optimize the calculation of future technical reserves.
Expanding Coverage and Market Growth
The FRA Chairman reaffirmed that refining actuarial tools is vital to achieving a balance between insurer solvency and the rights of policyholders. He stressed that the authority will continue to work alongside the Insurance Federation of Egypt (IFE) and market participants to drive insurance penetration, foster product innovation, and expand coverage across broader segments of society.