الهيئة العامة للرقابة المالية

• The new regulations seek to govern and improve the operational efficiency of the insurance and reinsurance market and its workforce.
• Insurance and reinsurance brokers must now register on the official electronic platform for professionals within 45 days of the resolution’s effective date.
• The registration period for all brokers has been extended from 3 to 5 years (renewable), aligning it with the standard for other professionals in the insurance sector.
• All insurance and reinsurance companies, including brokerage firms, must now notify FRA within one week of a broker’s termination.
• Foreign companies need approval from their home country’s competent authority to operate in Egypt.
• Company boards of directors must include at least two members with expertise in insurance or insurance brokerage. One of these experts needs to be an executive member and the other an independent member.
• Companies are now mandated to open at least two new branches within their first three years of operation, to ensure wider geographical reach and promote insurance awareness.
• For the first time, independent insurance brokers can now operate from their own private offices, provided they secure prior approval from FRA.
• Brokers currently operating from existing offices have a one-year grace period from the resolution’s effective date to bring their practices into compliance with these new regulations.
• Independent insurance brokers are now obligated to maintain comprehensive records of policies, commissions, claims, and cancellations. These can be either paper-based or electronic, ensuring consistent requirements across all types of brokers in the insurance sector.

FRA Board of Directors, chaired by Dr. Mohamed Farid, has issued resolution No. 69 of 2025, setting new professional rules and standards for insurance and reinsurance brokerage. This pivotal move aims to boost the efficiency of Egypt’s insurance market, ensuring higher professionalism and quality among brokers to protect consumer rights.

An insurance or reinsurance broker is defined as any natural person (individual) or legal entity (company) licensed by FRA to conduct insurance or reinsurance brokerage activities and registered at FRA registry. They facilitate insurance or reinsurance contracts for companies, receiving a salary, fee or commission in return.

This resolution brings into effect the Unified Insurance Law No. 155 of 2024, which was enacted in July 2024. It highlights FRA’s continuous commitment to regulate the insurance and reinsurance market, raising the standards of its workforce and aligning with global best practices. These initiatives aim to protect the rights of clients and beneficiaries, boost public awareness of insurance, and promote broader insurance, financial and investment inclusion across Egypt.

The new professional standards for this activity introduce several key controls. Among them, all insurance professionals, including both insurance and reinsurance brokers, are now mandated to register on the electronic platform for professionals within 45 days of the resolution’s effective date. This requirement, in line with the Unified Insurance Law issued in July 2024, allows for an extension of the deadline by FRA if acceptable reasons are provided.

The resolution stipulates that the registration period for all brokers in the designated register has been extended from 3 to 5 years and is renewable. Brokers are now required to begin their re-registration process at least three months before their current registration expires. This change aligns with the Unified Insurance Law, aiming to standardize obligations and ensure parity across all insurance sector professionals.

In addition, it mandates that insurance and reinsurance companies, along with brokerage firms, must notify FRA within one week of terminating any broker’s service. Also, the company remains responsible for any violations committed by the broker until FRA receives this notification and the reasons for termination.

The resolution sets clear criteria for board members. They must not have been convicted of honor-related offenses in the five years prior to their application. Additionally, they cannot simultaneously serve on the boards or be employed by other insurance companies. All members must be free of any disqualifying impediments, possess integrity and a good reputation and fully exercise their civil rights.

Furthermore, If a foreign company or financial institution, already supervised by a competent authority in its home country, establishes an insurance or reinsurance brokerage firm in Egypt, then its home country’s authority must approve its Egyptian operations. Additionally, the principle of group supervision will apply.

The resolution  stipulates that company’s boards must include at least two members with expertise in insurance or insurance brokerage, with one serving as an executive and the other as an independent member. To prevent conflicts of interest, no board member can simultaneously sit on the board or be employed by another company in the same sector, or by an insurance or reinsurance company.

Additionally, companies must ensure their issued and paid-up capital meets the minimum threshold set by FRA Board of Directors Resolution No. 196 of 2024, in accordance with the Unified Insurance Law. This resolution specifically mandates a minimum EGP 5 million in issued and paid-up capital for insurance and reinsurance companies .

All companies are also required to open a minimum of two branches within three years of commencing operations. A registered insurance broker must manage each branch. This mandate aims to significantly expand the companies’ geographical footprint, increase public awareness of the insurance sector and attract a broader range of citizens.

The new resolution, in line with the Unified Insurance Law, restricts reinsurance brokerage solely to legal entities established specifically for this purpose. Representatives of these entities must hold the necessary FRA licenses, acknowledging the specialized expertise required for this field. Furthermore, the resolution prohibits combining insurance brokerage with reinsurance brokerage and operating either activity without proper licensing and registration with FRA is now forbidden.

For the first time, independent insurance brokers are now permitted to operate from their own private offices. To gain approval, they must submit an application to FRA, including the office address, proof of ownership or occupancy, contact information, and a detailed list of proposed staff with their roles and responsibilities. A critical requirement is a signed declaration confirming that no proposed staff member is simultaneously engaged in other insurance activities.

Applicants must submit all data and documents the Authority deems necessary. Once these requirements are met, the Authority will process the application within 10 days. The new resolution also grants current brokers who operate via private offices a one-year to regularize their status in accordance with the updated regulations.

The resolution obliges insurance or reinsurance companies to convene the General Assembly at the time and place designated by the company’s articles of association. The assembly must be held at least once a year within three months following the end of the company’s fiscal year. In In addition, The Board of Directors may decide to convene the General Assembly whenever necessary.

Independent insurance brokers are now obliged to maintain records—either paper-based or electronic—of all policies, commissions, claims, and cancellations. This requirement supports the Authority’s goal of enhancing supervision and standardizing obligations across the insurance sector.