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The Financial Regulatory Authority (FRA) in Egypt has introduced new regulations requiring entities across the insurance sector to align their operations with the recently enacted Unified Insurance Law. This mandate applies to a broad spectrum of industry players, including insurance and reinsurance companies, brokers, insurance consultants, damage estimation experts, and healthcare program management firms.
As per the directive, these companies must update their articles of association and operational frameworks to fully comply with the new law by December 1st. Decision No. 223 of 2024, enacted on July 11th, underlines this regulatory shift, aiming to streamline and modernize Egypt’s insurance sector by consolidating all relevant guidelines under a single framework.
Compliance requires companies to hold extraordinary general assembly meetings to approve necessary statutory changes, submitting documentation from these meetings to administrative authorities for ratification and inclusion in the commercial register.
Specifically, healthcare and medical insurance program managers must apply for temporary licenses to continue operations during the compliance transition. These licenses will be revoked if companies fail to meet the regularization requirements within the specified period.
The FRA has also mandated that companies submit evidence of their compliance efforts within one week of obtaining approvals. Extensions may be granted for delays, provided valid reasons are submitted for review.
Standard regulatory requirements remain in effect, necessitating ongoing approvals from ordinary and extraordinary board meetings for any structural or governance changes until the December deadline.
The Unified Insurance Law is the first legislation to create a comprehensive framework for the sector, reflecting an industry-wide effort to enhance transparency, efficiency, and competitiveness. The FRA is actively engaging with stakeholders across the insurance industry to ensure effective implementation of the law’s executive regulations, aiming to foster a stable market that benefits companies and policyholders alike.
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