The Financial Regulatory Authority (FRA) has approved the establishment of a bailout fund for the insurance industry, according to Al Mal. The fund will pay off policy holders in the event that the underwriter is unable to do so, FRA Deputy Head, Reda Abdel Moaty, said. The move will help reduce risk in the industry and improve consumer confidence, FRA Chairman Mohamed Omran said. The FRA is positioning the move as part of its drive to better regulate the insurance industry, where other recent changes include the issuance of the Insurance Act.