الهيئة العامة للرقابة المالية

• The agreement aims at boosting sector cooperation, aligning efforts to combat AML/CFT and facilitating the exchange of technical expertise.

Dr. Mohamed Farid- FRA Chairman:

• The MOU underscores the Authority’s commitment to significantly broadening regional cooperation in insurance sector.

Judge Mahmoud Makiya:

• This cooperation underscores the deep relations between Egypt and Lebanon, demonstrating the mutual commitment of both parties to consolidate joint economic and regulatory ties.

Financial Regulatory Authority (FRA) and Lebanon’s Insurance Control Commission (ICC) signed a landmark Memorandum of Understanding (MoU). This agreement aims to deepen bilateral cooperation and expertise exchange in the insurance sector. It represents a strategic step toward fostering Arab integration in the supervision, regulation and growth of non-banking financial markets. Underscoring the agreement’s national importance, the signing ceremony was officially witnessed by His Excellency Prime Minister Dr. Mostafa Madbouly.

This bilateral agreement is a direct realization of FRA’s continuous commitment to enhance regional cooperation and strategically expanding its regulatory presence across Arab markets. It serves to strengthen vital institutional partnerships with counterpart regulatory bodies throughout the region.

The MoU was formally signed in Cairo on Sunday during the high-level meetings of the Egyptian-Lebanese Joint Higher Committee. Dr. Farid represented the Egyptian signatory. Representing the Lebanese side, Judge Mahmoud Makiya – Secretary-General of the Council of Ministers and Head of the Lebanese delegation – formally signed the agreement on behalf of Chairman of the Insurance Control Commission (ICC).

The MoU aims at promoting investment in the insurance sectors in both Egypt and Lebanon. Beyond commercial growth, the MoU ensures regulatory alignment, highlighted by enhanced coordination in Anti-Money laundering (AML) and Counter-Terrorist Financing (CFT). Additionally, the MoU mandates exchange of information to bolster efforts against insurance fraud. It also establishes formal protocols for effective cross-border supervision and the delivery of mutual assistance for services spanning both countries.

FRA Chairman confirmed that the MoU reflects the Authority’s commitment to expand regional cooperation in insurance supervision and oversight. He noted the agreement is essential for adopting best international practices in governance, sound management and risk management. Dr. Farid views the collaboration with Insurance Control Commission (ICC) as a vital step toward achieving institutional and technical integration that will successfully support the broader development of Arab financial markets.

Moreover, FRA Chairman stated the agreement will pave the way for deepening technical and training cooperation, supporting the sustained growth of reinsurance activity and enhancing market transparency and oversight. Ultimately, these combined efforts are designed to positively impact the confidence of both investors and market participants.

Judge Mahmoud Makiya, Secretary-General of the Council of Ministers and Head of the Lebanese Delegation, stated that signing of the Memorandum of Understanding (MoU) with the Authority represents an important step toward strengthening institutional cooperation between the two countries. He praised the pioneering regulatory experience led by the Authority in developing the legislative and oversight framework of the non-banking financial sector.

He added that this cooperation reflects the depth of relations between Egypt and Lebanon and the commitment of both sides to consolidate joint economic and regulatory cooperation. This, in turn, will enhance the efficiency of non-banking financial markets and support sustainable economic development in both countries.

The Memorandum of Understanding (MoU) establishes a detailed framework for technical cooperation in the critical regulatory domains of licensing, supervision and oversight. This knowledge exchange will be facilitated through specialized training programs, seminars and educational materials covering the Egyptian and Lebanese policies and insurance markets, best practices in international insurance supervision and the technical and regulatory systems used to supervise insurance firms and related professions.

Beyond training, the MoU commits both regulators to higher institutional goals, including the development of joint institutional excellence standards and conducting regular benchmarking within the sector. Crucially, the agreement seeks to unlock commercial potential by exploring growth and reinsurance opportunities between the two countries. Furthermore, it mandates collaboration in highly specialized training areas, such as Actuarial Sciences and the regulatory systems governing Takaful (Islamic Insurance). The MoU includes a provision for periodic consultation and prompt mutual notification to ensure both parties stay fully aligned on relevant legislative and regulatory updates.

The counterpart signatory to FRA is the Insurance Control Commission (ICC), which serves as the regulatory body responsible for supervising the insurance sector in Lebanon. The Lebanese market currently comprises approximately 46 insurance companies under the ICC’s supervision.

FRA has successfully initiated a qualitative shift in the Egyptian insurance sector through a comprehensive package of regulatory decisions. These reforms are strategically designed to deliver three core objectives: enhance market efficiency, ensure the robust protection of policyholders’ rights and promote wider insurance inclusion.

It is worth mentioning that FRA issued Egypt’s first comprehensive governance rules for insurance and reinsurance companies. This mandate directly boosts transparency and accountability by requiring firms to establish internal charters and codes of conduct for boards and their committees. Also, it mandates that insurance companies establish specialized departments for receiving and resolving customer complaints. This measure is designed to ensure rapid response to policyholders’ requirements and improve service quality. Companies are also required to submit periodic reports detailing the causes and patterns of these complaints.

In the context of digital transformation, the Authority issued a resolution on regulating the e-issuance and distribution of insurance policies. This contributes to easier access to insurance services and increases operational efficiency. FRA also adopted new rules for the financial solvency margin to strengthen the stability of insurance companies and further protect the rights of policyholders.

To maximize investment returns and realize direct economic benefits for citizens, the Authority issued strategic decisions obligating Private Insurance Funds to allocate a percentage ranging between 5% and 20% of their funds for investment in equity funds listed on the Egyptian Exchange (EGX).

Furthermore, FRA established specific investment mandates for insurance companies: They are now obligated to invest no less than 2.5% of their paid-up capital into the designated equity funds. Additionally, they must direct a minimum of 5% of their free funds (equity) into open-ended equity investment funds.

FRA’s comprehensive reforms have yielded a demonstrable positive impact on the sector. Total collected premiums surged by 25.3% to reach EGP 77.5 billion. Critically, the value of compensations (claims paid) witnessed an even greater increase, growing by 45.6% to hit EGP 40 billion during the same period, clearly reflecting the strong financial commitment of companies to their clients. Furthermore, investments managed by Private Insurance Funds increasing by 11.9% year-on-year to reach approximately EGP 19.95 billion.

Also, FRA has successfully launched an extensive national campaign to enhance insurance awareness and financial inclusion. Operating under the slogan, “Secure First… So You Don’t Start Over,” this strategic drive is executed through a key partnership with the Insurance Federation of Egypt (IFE) and the Insurance Policyholders’ Fund. This collaboration firmly underscores the Authority’s commitment to embedding a proactive insurance culture in Egyptian society and significantly expanding the base of citizens benefiting from insurance protection.