الهيئة العامة للرقابة المالية

FRA Issues First-Ever Controls Regulating Payments for Insurance Distribution Channels – Tuesday 25 November 2025

• The new controls establish clear rules to balance customer rights and marketing incentives, ensuring compliance with disciplined technical standards.

Dr. Mohamed Farid – FRA Chairman:

• Our goal is to boost insurance competition while safeguarding customer rights and company sustainability.
• Customers will not bear unjustified costs; the policy must remain a genuine protection tool for citizens.
• I urge Egyptians to read the terms of their insurance policies and deal only with licensed entities.
• New controls mandate actuarial studies from insurers to ensure accurate marketing compensation.
• The Authority aims to regulate marketing compensation value to guarantee policyholder and shareholder rights.
• FRA will intervene immediately, obligating re-pricing, if customer rights or company solvency are affected.

In a decisive move to bolster discipline within the Egyptian insurance market and safeguard policyholder, the Financial Regulatory Authority (FRA) chaired by Dr. Mohamed Farid has issued a first-of-its-kind resolution regulating fees paid by insurance companies to marketing and distribution channels. This measure is crucial to ensure that customers are not burdened with excessive costs that could compromise fair pricing or the long-term sustainability of the insurance companies.

Resolution No. 267 of 2025 marks a qualitative leap toward increasing market efficiency and achieving full transparency in the costs, commissions and bonuses paid to brokers and agents. It establishes clear rules designed to balance customer rights with necessary marketing incentives, while strictly obligating companies to adhere to sound technical practices.

Dr. Mohamed Farid, FRA Chairman affirmed that the new resolution is customer-centric, emphasizing that its scope extends beyond simply regulating the relationship between insurance companies and marketing entities. He elaborated: ” New controls ensure the customer does not bear any unjustified costs and receives fair pricing that genuinely reflects the value of the insurance product, as dictated by a properly prepared, technically sound actuarial study.”

FRA Chairman stressed that the new controls are intended to encourage competition and safeguard company sustainability, while also ensuring that the insurance policy remains a genuine tool of protection for every citizen.

The resolution explicitly mandates insurance companies to submit certified actuarial studies to guarantee that broker commissions and incentives are not loaded onto customer premiums. This ensures compensation does not exceed fair value or negatively impact policyholder rights or the company’s long-term profitability.

Additionally, FRA Chairman reiterated his important call to citizens, urging them to accurately read the terms of their insurance policies and to deal only with entities officially licensed for marketing by the Authority.

The actuarial study is defined as a specialized financial analysis conducted by the insurance company. This analysis ensures the product is correctly priced according to sound technical principles and guarantees the company can adequately meet future obligations to customers.

Furthermore, the new resolution requires insurance companies to submit a detailed request to FRA. This submission must include the contract with the marketing entity, specifying all forms of financial compensation (commissions, bonuses, incentives and expenses) along with the basis for calculation, payment method and accounting treatment of these payments.

FRA officially recognizes several channels as approved marketing entities, including: banks licensed by the Central Bank of Egypt, the National Post Authority, Nasser Social Bank branches, telecommunication companies, and information systems networks (for digital marketing).

Crucially, the resolution grants FRA the right to immediate intervention. The Authority can compel insurance companies to re-price products or amend contract terms if any negative impact on customers or the company’s financial solvency is confirmed.

The said resolution explicitly prohibits the payment of any amounts or bonuses that could either violate the principle of fair competition among companies or negatively impact the rights of policyholders or companies’ future profitability.

This resolution represents a new phase of discipline, transparency and fairness in the Egyptian insurance sector. It fundamentally redefines the relationship between companies and brokers, ensuring that the customer remains the primary and ultimate beneficiary.

It is a standard practice in the insurance industry for a portion of product marketing costs to be reflected in the premiums paid by customers, as these costs are classified as essential expenses related to the issuance and distribution of policies.

This underscores the importance of setting precise controls to ensure that these marketing costs do not exceed fair limits. The goal is to prevent citizens from bearing any unjustified additional burdens that could inflate the insurance price or compromise policyholder rights.

Over the recent period, FRA chaired by Dr. Mohamed Farid has initiated a broad reform package. Since the implementation of the Unified Insurance Law, FRA has issued approximately 47 regulatory decisions aimed at strengthening market stability, raising governance standards and promoting both insurance and financial inclusion.

To maximize investment returns for policyholders, FRA has issued new investment mandates. Private insurance funds are now required to allocate 5% to 20% of their assets to open-ended investment funds focused on listed equities. Furthermore, insurance companies must invest at least 2.5% of their paid-up capital in these funds, alongside dedicating a minimum of 5% of their free assets to equity investments.

It is worth mentioning that the Authority is also nearing the launch of a dedicated website for granting actuarial science scholarships in cooperation with the American University, in addition to starting training courses for second-line leaders in insurance companies through protocols signed with international educational and financial institutions.

 FRA Chairman Casts Ballot in the 2025 House of Representatives Elections – Monday 24 November 2025

This morning, Dr. Mohamed Farid, FRA Chairman casts his ballot in the 2025 House of Representatives elections. This took place at his electoral committee headquarters at Siza Nabrawi Preparatory and Secondary School for Girls in the Fifth Settlement, New Cairo.

Dr. Farid emphasized the utmost importance of positive participation in democratic processes, stressing that these elections reflect the awareness of Egyptian society and its commitment to complete the journey of building the New Republic. He highlighted that the elections represent a fundamental pillar for enhancing parliamentary life and activating the supervisory and legislative role of the Council, which, in turn, supports Egypt’s comprehensive economic development path.

Dr. Farid stated that elections are a constitutional right and a genuine national duty to choose the people’s representatives. He noted that this principle has been emphasized by His Excellency President Abdel Fattah El-Sisi on every occasion as a fundamental support for consolidating democracy and building the New Republic.

 FRA Chairman pointed out the significance of this choice, particularly since the members of the House of Representatives are the legislators who will discuss and approve important laws and legislation, including those related to the economic sector, which have a direct impact on the investment climate and sustainable development. The Chairman stressed that a sound and conscious choice is the cornerstone that builds the modern Egyptian state and ensures the continuation of the development and progress for future generations.

FRA Chairman Delivers Keynote Address at ESLSCA Executive Education Summit 2025 – Sunday 23 November 2025

Dr. Mohamed Farid – FRA Chairman:

• Continuous professional education is the engine that translates policy into measurable results, ensuring business sustainability and competitiveness.
• Institutions are required to change the old work environment to accommodate the ideas of the new generations (Gen Z and Gen Alpha).
• Education must adapt to reforms to avoid becoming disconnected from reality.
• Tangible results in women’s empowerment paved the way for the upcoming launch of a dedicated smartphone application for women.

In an address that established the features of Egypt’s business future and set a roadmap for enhancing competitiveness and sustainability, Dr. Mohamed Farid, FRA Chairman delivered keynote speech at ESLSCA Executive Education Summit 2025.

On behalf of FRA and the Egyptian Ministry of Finance, Dr. Farid asserted that successful economic reform and development in Egypt hinges on robust investment in human capital.

He stressed that Continuous Professional Education (CPE) is the cornerstone for transforming ambitious policies into tangible, practical results, and is essential for guaranteeing institutional flexibility, competitiveness and the ability to achieve long-term sustainability amidst evolving challenges.

Dr. Farid clarified that the requirements of the current phase necessitate aligning executive education with the ongoing reforms in the Egyptian economy. He warned that any educational system that fails to keep pace with these transformations will inevitably produce “education disconnected from reality.”

According to FRA Chairman, the recent period witnessed the implementation of crucial regulatory resolutions, such as the first-ever governance standards for insurance companies and key professions regulation. The latter sets precise requirements for core positions, including mandatory Continuous Professional Education (CPE) hours for all employees.

FRA Chairman further noted that FRA resolution regarding the registration of accountants and auditors mandates both an annual minimum and a three-year accumulation of specialized training, thereby ensuring their readiness to efficiently comply with supervisory requirements.

Dr. Farid called upon universities and executive education centers, including ESLSCA, to continuously monitor regulatory developments and update their curricula to meet market needs, stressing that investment in the human element is the essential tool for guaranteeing policy execution and achieving institutional goals.

Addressing women’s representation, FRA Chairman explained that boosting female presence on company boards is a key pillar of comprehensive governance development, noting that tangible results have already been achieved across the market.

He highlighted that the percentage of companies with female board members has risen significantly from 14% in 2020 to 27% today. Concurrently, the total number of female board members has increased from 400 to 1,140 women. This major leap is the direct result of targeted regulatory interventions and systematic leadership training and qualification programs implemented by the Authority in recent years.

Dr. Farid emphasized that the Authority approved several resolutions in this regard, including resolution No. 123 of 2019 and No. 124 of 2019, which ensure gender diversity within the leadership structures of listed companies and non-banking financial institutions.

Furthermore, FRA resolution No. 204 of 2020 explicitly prohibits gender-based discrimination in financial services, while resolution No. 205 of 2020 offers financial incentives to companies that actively work to promote gender inclusion.

This series of resolutions also includes Prime Minister’s Decree No. 2479 of 2018 (amended by ministerial decree No. 3456 of 2022), which modifies certain provisions of the Executive Regulations of the Capital Market Law, notably including provisions governing the issuance of gender bonds.

Dr. Farid noted that FRA is developing the “Women’s Empowerment” smartphone application to serve as a tool connecting qualified women with board opportunities within the non-banking financial services sector. He also mentioned the launch of specialized training programs aimed at equipping ambitious female leaders with the essential governance and leadership skills required for board membership.

Dr. Farid addressed the challenges of aligning Gen Z and Gen Alpha with traditional work models, pointing out that these generations have distinct expectations regarding the work environment, motivation and sense of belonging.

Additionally, FRA Chairman asserted that leadership must reframe interaction tools and loyalty building within institutions. This must move away from outdated concepts where young employees tolerate harsh working conditions (in terms of hours or compensation) in exchange for long-term experience investment. He stressed the importance of developing innovative solutions to attract and retain young talent.

He emphasized that developing flexible and innovative work environments within financial institutions is a strategic necessity. This ensures attracting young talent and investing their energies in a way that boosts institutional competitiveness and sustainability.

In closing, Dr. Mohamed Farid affirmed that Continuous Education, Women’s Empowerment, and Investment in Human Resources are genuine executive components, not mere slogans. These factors are what enable institutions to transform visions and policies into practical actions and measurable results, ultimately enhancing their resilience and their capacity for future competition.