الهيئة العامة للرقابة المالية

• The regulation requires each fund to provide distinct benefits and memberships based on cadre, job category or salary.
• The Authority’s primary objective is to proactively regulate the establishment and operation of private insurance funds within each entity

FRA Board of Directors chaired by Dr. Mohamed Farid, has issued Decree No. 1 of 2025, approving the establishment of multiple private insurance funds within a single entity. This decree aims to streamline and regulate the establishment of such funds, setting clear operational parameters.

Private insurance funds, duly registered with FRA and endowed with independent legal personality, are established to provide supplementary benefits to affiliated employee groups. These benefits encompass a range of options, including insurance coverage, supplementary pensions, social welfare provisions and healthcare services.

The newly issued decree permits entities to establish multiple private insurance funds, subject to key conditions. Each fund must offer distinct benefit packages, as defined within its bylaws. These benefits may include, but are not limited to, insurance, savings, medical coverage, social benefits and periodic pensions.

Also, the decree stipulates that multiple private insurance funds within an entity are permissible only with distinct memberships (cadre, job, salary, etc.) and Authority-approved justifications for each additional fund.

This decree follows FRA Decree No. 236 of 2024, which amended the standard bylaws for private insurance funds under the Unified Insurance Law. This amendment broadened eligibility to include groups linked by profession, single employment, or social connection, thereby expanding access to private insurance benefits for a wider range of eligible citizen.

As part of its role to supervise and regulate non-bank financial markets, FRA is committed to foster the growth and development of private insurance funds. This commitment is underpinned by the Unified Insurance Law promulgated last July which delegates the authority to FRA Board to establish the necessary regulatory framework.