الهيئة العامة للرقابة المالية

Dr. Islam Azzam, FRA Chairman:

• FRA is committed to resolving regulatory and operational hurdles to enhance insurance sector’s performance.
• The Authority prioritizes sustained collaboration with the Insurance Federation of Egypt and key stakeholders to develop the industry and expand market reach.

As part of the Financial Regulatory Authority’s (FRA) drive to achieve a qualitative leap in the performance of non-banking financial markets and bolster their growth, FRA Chairman Dr. Islam Azzam launched the first series of extensive meetings with stakeholders across the non-banking financial sector. The initiative aims to enhance market efficiency and strengthen its role in the national economy, beginning with a comprehensive meeting with the Insurance Federation of Egypt, held in the presence of the Authority’s senior leaders.

At the beginning of the meeting, Dr. Islam underscored the Authority’s commitment to fostering social dialogue as a vital mechanism for enhancing direct communication with all stakeholders. This collaborative approach underpins efforts to develop markets while cultivating a business environment that incentivizes growth and investment.

He further noted his commitment to addressing specific challenges facing insurance sector, emphasizing the need to expand the market’s reach. By listening to diverse perspectives, the Authority aims to boost insurance, financial, and investment inclusion, ultimately increasing the sector’s contribution to the Gross Domestic Product (GDP).

It is worth noting that total premiums for insurance companies reached EGP 10.9 billion, with property insurance premiums accounting for EGP 7.3 billion. Furthermore, total claims paid by insurance companies amounted to approximately EGP 3.8 billion as of the end of January 2026.

FRA Chairman noted that the meeting focuses on three main pillars: addressing current challenges, listening to practical visions and proposals from the market, and reaching realistic solutions. These solutions aim to bolster the sector’s ability to fulfill its vital role in mobilizing savings and investing them in development projects, while reducing the financial burden on citizens by providing coverage against unexpected damages, ensuring business continuity, and protecting wealth.

The meeting witnessed discussions on several important files, foremost of which were the executive decisions issued under the Unified Insurance Law No. 155 of 2024 and their implementation mechanisms. The goal is to achieve a balance between regulatory oversight and stimulating market growth.

The meeting also discussed enhancing the deployment of InsurTech applications and financial technology as primary drivers for sector development. This supports innovation and improves customer experience, in parallel with activating FRA Regulatory Sandbox. The sandbox allows for testing digital solutions and models in a safe environment under FRA supervision, balancing the support for innovation with market stability and the protection of stakeholders’ rights, while giving companies the opportunity to refine their solutions before full-scale implementation.

In this context, several insurance company representatives expressed their interest in expanding the issuance of insurance policies via InsurTech solutions. This reflects a growing trend toward adopting modern digital models and contributes to simplifying issuance, pricing, and policy management, thereby accelerating service delivery and reaching broader customer segments.

Discussions also covered the procedural workflow for policy approvals, noting the Authority’s commitment to efficiency and flexibility as key drivers for investment. It was emphasized that each insurance policy is unique in its technical terms, requiring them to be handled individually rather than being subjected to standardized templates, ensuring a balance between risk management and protecting policyholders’ rights.

The meeting further addressed various views and proposals submitted by insurance companies regarding mechanisms to increase premium retention within the local market. These efforts are part of a broader strategy to develop the reinsurance market, enhancing its efficiency to limit the outflow of premiums abroad and maximize the utilization of local risk management capabilities. Several companies submitted research papers outlining practical visions for the sector’s development, including tools to boost retention rates, strengthen domestic reinsurance mechanisms, and optimize risk distribution to ensure the sector’s long-term stability and resilience.

The meeting also reviewed the practical implementation of the Authority’s governance framework. Discussions underscored the necessity of revitalizing the roles of corporate boards and their sub-committees, ensuring the regularity of board meetings and the robust performance of specialized committees – specifically Audit, Risk, Investment, and Nomination and Remuneration.

Additionally, the meeting addressed industry strategies for aligning with new governance mandates and optimizing board efficiency by increasing the frequency of committee meetings. The objective is to ensure these committees play a pivotal role in steering management decisions while reinforcing transparency and internal controls. These measures – consistent with FRA Board resolution No. 200 of 2025 (issued October 27, 2025) – underscore a strategic commitment to institutionalizing sound governance principles across the insurance sector.

The meeting extensively addressed industry challenges, such as expanding customer base and increasing coverage options. It also focused on strengthening policyholder rights and ensuring insurance sector remains sustainable and resilient.

Dr. Islam Azzam stated that the Authority places special emphasis on the insurance sector due to its critical role in financial stability and risk protection. He highlighted the need for continuous engagement with the Insurance Federation and all industry partners to strengthen participant confidence and support market’s development.

He noted that the Authority’s efforts to resolve regulatory and operational hurdles are ongoing. This includes developing regulatory frameworks and issuing rules aimed at improving market efficiency and increasing insurance penetration rates in alignment with international best practices.

Dr. Islam also emphasized the formalization of social dialogue as an effective tool for enhancing direct communication with all stakeholders. This approach contributes to market development and fosters a business environment that stimulates growth and investment.

For their part, insurance industry representatives expressed their appreciation for the Authority’s commitment to transparent and ongoing dialogue. They affirmed their full support for initiatives aimed at modernizing the sector and enhancing its capacity to serve the diverse needs of all segments of society.