The insurance sector is regarded as one of the most important pillars supporting the national economy, not only as a tool for risk management and protection of individuals and institutions against potential losses, but also as a key contributor to financing economic and social development. Insurance provides a financial safety net that enhances the stability of economic activities and enables investors to expand their projects without fear of unforeseen risks, thereby positively impacting growth and productivity levels. The sector also contributes to mobilizing long-term savings and channeling them into strategic investments that support the State’s plans for infrastructure development, sustainable development, and the stimulation of productive and service activities.
Moreover, insurance inclusion represents a fundamental pillar for expanding the societal impact of the insurance sector. In this regard, the State, through the Financial Regulatory Authority (FRA), seeks to ensure access to insurance services for all segments of society, particularly those with limited access to traditional protection instruments.
In light of the rapid global changes, the Unified Insurance Law No. (155) of 2024 was enacted to reflect an integrated vision for the development of the insurance industry in Egypt. The Law establishes a unified legislative framework regulating all insurance and reinsurance activities, as well as private insurance funds, while prioritizing the rights of policyholders through enhanced transparency and disclosure requirements, stricter financial solvency rules for companies, and the adoption of sound governance systems that ensure effective risk management. This Law represents a qualitative shift that positions Egypt among emerging markets aligned with global legislative developments and reinforces confidence between market participants and the market as a whole.
The Law also introduced new tools related to digitalization and financial technology, enabling insurance companies to issue and distribute policies electronically and to provide innovative services that help reduce administrative costs and expand their customer base. The FRA oversees the implementation of these legislative provisions through advanced supervisory mechanisms that strike a balance between protecting customers and encouraging companies to innovate. Key measures include requiring companies to establish call centers to serve holders of digital policies and adopting advanced digital verification systems to ensure the accuracy of customer data and protect the market from the risks of money laundering and terrorist financing.
Insurance Activities
The insurance sector in Egypt encompasses a range of key activities, including:
- Life insurance and capital accumulation operations
- Property and liability insurance
- Long-term medical insurance
- Specialized medical insurance, both long-term and short-term, and the related services and activities
Microinsurance: The FRA, in cooperation with the Japan International Cooperation Agency (JICA), conducted a research survey on demand for microinsurance products in selected governorates of the Arab Republic of Egypt to identify the needs of the target segments for this relatively new insurance branch in the Egyptian market. This survey is considered one of the very few studies conducted to assess the needs of low-income groups in Egypt.
The Authority’s Role in Supervising Insurance Activities
To engage in any insurance-related activity, the law requires the registration with the Financial Regulatory Authority (FRA). The regulated activities include the following:
- Insurance and Reinsurance Companies
- Direct Insurance Companies:
These companies are responsible for issuing insurance policies (insurance coverages) in the fields of property, liability, life insurance, and capital accumulation operations, as well as settling due claims upon the occurrence of the insured risk.
- Reinsurance Companies:
These companies specialize in accepting a portion of risks from direct insurance companies in return for a commission.
- Cooperative Insurance Associations
A cooperative insurance association is established in accordance with general cooperative principles and provides its members with an insurance system based on mutual coverage.
- Private Insurance Funds
These are schemes established within an entity, company, trade union, or association of individuals linked by a common profession, occupation, or social relationship, with the purpose of providing their members with insurance benefits in the form of financial advantages agreed upon among them.
) To learn more about the FRA’s role regarding private insurance funds, click here. To view the legislation governing private insurance funds, click here).
- Government Insurance Funds
These funds undertake insurance operations against risks that insurance companies typically do not accept, or risks that the government deems appropriate to manage directly.
- Insurance Pools
The law permits insurance and reinsurance companies to establish insurance pools among themselves to manage a specific line of insurance or a particular insurance operation.
Key Responsibilities of the Authority in Insurance Activities
- Protecting the rights of policyholders, beneficiaries, and third parties
- Ensuring the achievement of the economic and social objectives of insurance activity and safeguarding national savings
- Ensuring the soundness of the financial positions of insurance market entities, coordinating among them, and preventing conflicts
- Contributing to the development of insurance awareness nationwide
- Strengthening and developing the insurance market
- Enhancing insurance professions and contributing effectively to the provision of expertise
Protection of Policyholders’ Rights
The Unified Insurance Law No. (155) of 2024 dedicates Chapter Four to regulating the Policyholders’ Protection Fund. The establishment of the Fund is pursuant to Article (198) of Law No. (155) of 2024, which provides that the “Policyholders and Beneficiaries Guarantee Fund” is a legal entity governed by private law, with an independent budget, subject to the supervision of the Authority, and headquartered in Cairo. The Fund aims to compensate policyholders and beneficiaries in the event that an insurance company is unable to meet its obligations. The Prime Minister may, after consulting with the Authority, amend the Fund’s statute issued prior to the application of the provisions of this Law”.
Prime Ministerial Decree No. (2734) of 2018 was issued on the 25th of December 2018 and subsequently amended by several Prime Ministerial decisions, most recently Decree No. (597) of 2025, promulgating the Statute of the Policyholders and Beneficiaries Guarantee Fund at insurance companies. (To view the decree, please click here.)
The statute of the Policyholders’ Protection Fund shall, in particular, include the following:
- The objectives of the Fund, the means of achieving them, and the management of its relationship with the Authority
- Membership subscriptions, conditions thereof, and the value of annual contributions payable by member companies
- The operating system of the Fund and the formation of its Board of Directors
- The scope of coverage and the maximum compensation payable by the Fund
- The financial resources of the Fund and the rules governing their use and expenditure
- Audit of the Fund’s accounts
Laws Governing Insurance Activities in Egypt
The Unified Insurance Law promulgated by Law No. (155) of 2024
Regulatory decisions issued by the FRA
To view insurance legislation on the Legislative Portal, please click here.
Governance and Compliance
The Financial Regulatory Authority (FRA) works to entrench the principles of transparency, disclosure, and sound governance through:
- Requiring companies to make periodic disclosures of their financial statements and material information
- Monitoring institutions’ compliance with professional rules and standards
- Combating fraud, manipulation, money laundering, and terrorist financing within the insurance sector
- Promoting a safe investment environment that protects the rights of policyholders
Insurance Professionals
The (FRA) grants licenses to practitioners and professionals in the insurance sector in accordance with specific requirements. These licenses include:
- Insurance Broker License
- Insurance Consultant License
- Actuary License
- Loss Adjuster and Claims Assessor License
Obtaining these licenses is subject to passing approved professional examinations and complying with professional rules and ethical standards.
Insurance Sector Data According to the FRA Annual Report 2024
The net value of insurance companies’ investments increased during fiscal year 2023/2024 to EGP 298.2 billion, compared to EGP 208.8 billion in fiscal year 2022/2023, representing a growth rate of 42.8%. The average annual growth rate of net investments amounted to approximately 17% during fiscal years 2019–2023.
The net asset value of insurance companies rose during fiscal year 2023/2024 to EGP 343.3 billion, compared to EGP 242.1 billion in fiscal year 2022/2023, reflecting an increase of 41.8%. The average annual growth rate of net assets reached approximately 24.4% during fiscal years 2019–2023.
The surplus from insurance operations increased to EGP 14.6 billion in fiscal year 2023/2024, compared to a surplus of EGP 9.8 billion in fiscal year 2022/2023, representing a growth rate of 49.3%. The average annual growth rate of the insurance operating surplus amounted to approximately 23% during fiscal years 2019–2023.