الهيئة العامة للرقابة المالية

Dr. Mohamed Farid – FRA Chairman:

• The Committee serves as a vital instrument for enforcing insurance justice, making it a practical realization of the Unified Insurance Law’s core objectives.
• Key outcomes of FRA’s move include faster dispute resolution and a substantially improved insurance business environment.
• The Committee must issue a reasoned decision within a strict 30-day window following the complete submission of all required data.
• Strict controls have been established to prevent conflicts of interest, thereby guaranteeing the Committee’s neutrality and integrity.
• The regulation permits and encourages negotiation and amicable settlement for disputes brought before the Committee.
• Fees start at EGP 5,000 for claims under EGP 1 million and cap at EGP 20,000 for claims over EGP 5 million.

FRA Board of Directors chaired by Dr. Mohamed Farid, has issued a landmark resolution to regulate “Insurance Disputes Committee”. This strategic action is the latest step in FRA’s efforts to develop the legislative and regulatory framework of the insurance sector, significantly enhancing consumer protection mechanisms and fostering a more efficient, transparent and stable operating environment within the Egyptian market.

Resolution No. 254 of 2025 specifies the Committee’s jurisdiction to consider and rule on all disputes arising between Policyholders, beneficiaries, third parties or those registered in insurance professions on one side and any of the insurance entities operating in the market on the other. These entities include all forms of insurance and reinsurance companies (commercial or Takaful), as well as specialized medical insurance companies, micro-insurance and insurance pools.

Dr. Mohamed Farid,  FRA Chairman affirmed that the new resolution represents a practical embodiment of the goals of the Unified Insurance Law and is a fundamental step toward enhancing protection for those dealing in the insurance sector. It aims to ensure they obtain their rights efficiently and transparently, thereby supporting stability and confidence in the non-banking financial activities system.

He pointed out that the Committee serves as a vital tool for enforcing insurance justice, which will reduce the duration of disputes and improve the business environment as a whole. Dr. Farid noted that the mandate compelling the Committee to issue a reasoned decision within only thirty days from the date all required data and documents are fully submitted comes within the framework of the Authority’s commitment to set operational mechanisms that guarantee speed and effective resolution of disputes.

The new resolution stipulates the formation of a Technical Secretariat for Insurance Disputes Committee. The Technical Secretariat receives all dispute applications from stakeholders and ensuring continuous communication with them throughout the process. It must organize and complete all papers and documents related to the insurance dispute so they are ready for  presentation to the Committee. It registers each application, thoroughly studies the case details and produces a detailed report. The  Additionally, the Technical Secretariat must  keep an electronic record of all dispute settlement requests, specifically logging the date of the application, the subject of the dispute, the details of the parties involved, the dates of the case meetings and the resolutions issued by the Committee.

Moreover, its duties include preparing an agenda for all sessions and submitting it directly to the Committee Chairman for approval. Following the meetings, the Secretariat is responsible for drafting the official minutes, which are required to be highly detailed, documenting all opinions expressed, the resolutions issued and the brief reasons forming the basis of those decisions. The Secretariat ensures all records are preserved by archiving the Committee’s meeting minutes and issued resolutions, alongside maintaining proof of notifying the concerned parties of the decisions made.

The list of the Secretariat’s duties further includes compiling and aggregating precedents established by the Committee in previous rulings. The Secretariat shall prepare statistical reports detailing the types of disputes presented, the resulting resolutions, and other related studies. The Secretariat is tasked with communicating directly with the parties to the dispute – requesting necessary data, documents, or memorandums and arranging for hearings or inquiries regarding relevant facts – in addition to performing any other tasks assigned by the Committee Chairman.

The resolution stipulates that the Technical Secretariat, with the approval of the Committee Chairman, may seek the opinions of the relevant departments within FRA regarding technical matters that fall within their competence.

On the other hand, the resolution establishes a graduated fee structure for the service of studying and examining dispute applications, determined by the value of the amount under contention. Specifically, the fee is set at EGP 5,000 for disputes valued up to EGP 1 million. This fee then increases to EGP 10,000 if the disputed amount exceeds EGP 1 million but does not surpass EGP 5 million. For the highest claims, the fee reaches EGP 20,000 if the value of the amount under dispute exceeds EGP 5 million.

The resolution permits the parties to negotiate and agree upon an amicable settlement of the dispute brought before the Committee. This settlement must be formally recorded in minutes signed by the parties or their representatives.

Additionally, the resolution sets the deadline for the Committee’s decision at 30 days from the date all data and documents are fully submitted. The decision must be reasoned and signed by the Committee Chairman. The parties to the dispute are obligated to implement the Committee’s decision within a maximum of 30 days from the date it becomes enforceable. This period may be extended with the approval of FRA Chairman if the concerned party provides acceptable justifications.

To ensure neutrality and integrity, the resolution established strict controls to prevent conflicts of interest. These controls prohibit Committee members from considering, participating in the discussion, or voting on any subject or resolution if they, or their relatives up to the fourth degree, have a direct or indirect interest in the dispute, or if they are adversaries to any of the parties.

Committee members, Technical Secretariat and any mandated experts are obligated to maintain the confidentiality of information and are prohibited from disclosing any data or documents related to the dispute without the prior written consent of the parties. By virtue of this resolution, Resolution No. 926 of 2018 (which previously regulated the work of the Dispute Resolution Committee) has been repealed. The new resolution is effective from the day following its date of publication in the Official Gazette (Al-Waqai’ Al-Misriyya).

FRA had previously issued Resolution No. 77 of 2025 at the end of last October. This resolution mandates insurance companies to establish an integrated system for the prompt and transparent resolution of customer complaints by creating specialized internal departments to handle complaints and applying the highest standards of disclosure and clarity in all insurance policies and services provided to clients.

Insurance companies and related professions are now obligated to submit periodic reports to FRA. These reports must detail the causes and patterns of complaints, alongside the corrective actions implemented. Moreover, the regulations now clearly govern the process for submitting external complaints to FRA, specifically after the internal company complaint process has been failed and a settlement could not be reached.

The complaint process within the insurance sector is now structured in distinct stages. Initially, the client submits a complaint to the insurance company, which is obligated by FRA resolutions to provide a response as quickly as possible. If the client finds the company’s response unacceptable, they are entitled to appeal to the Authority directly, without incurring any fees. The final stage allows the client to appeal to Dispute Resolution Committee upon payment of the predetermined service fees and the fulfillment of all previously mentioned required data.

FRA has initiated a comprehensive development revolution in the insurance sector. The Authority has issued approximately 47 regulatory resolutions since the application of the Unified Insurance Law, with the goal of enhancing the market’s strength and resilience and achieving both insurance and financial inclusion simultaneously.