الهيئة العامة للرقابة المالية

Dr. Mohamed Farid – FRA Chairman:

• Regulations ensure resource sustainability and protect beneficiaries’ rights.
• The resolution establishes a framework for preliminary, ongoing, and ex-post oversight.
• Funds are established by Prime Ministerial decree and may only commence operations following formal registration and a field inspection by the Authority.
• Robust internal controls and risk management frameworks serve as the primary line of defense in safeguarding fund assets.
• Funds shall submit periodic financial, actuarial, and investment reports, all of which must be audited by FRA-accredited auditors.
• Existing funds must reconcile their status within a year.

FRA Board of Directors chaired by Dr. Mohamed Farid, issued new regulations for government insurance funds. The new resolution aims at solidifying their financial positions, ensuring management efficiency, and protecting rights of their beneficiaries.

Resolution No. 265 of 2025 establishes a comprehensive regulatory and supervisory framework starting from the establishment  of the fund and extending to its registration, administrative and executive structure, internal control systems, financial disclosure, auditing, risk management, investment policy, and the Authority’s powers to monitor and intervene when necessary.

Dr. Mohamed Farid stated that this resolution is a significant step toward tightening control over government insurance funds. He noted that it creates a complete regulatory framework that starts at inception and goes beyond monitoring to encompass governance, internal control, financial disclosure, risk management, and investment policy.

FRA Chairman added, “Through these regulations, we aim to ensure the readiness of these funds before they begin operations, instill institutional discipline, and ensure efficient resource management to achieve financial sustainability, safeguard beneficiaries’ rights, and enhance long-term confidence in their management.”

The new resolution stipulates that government insurance funds are established by a Prime Ministerial decree based on a proposal from FRA Board. Public entities are allowed to submit proposals to establish funds provided they meet the necessary documentation. FRA may also request certified actuarial studies to verify resource adequacy and the fund’s ability to fulfill its obligations.

The resolution also prohibits funds from practicing activity until registered with FRA, granting the Authority power to conduct prior field inspections to ensure the availability of the necessary administrative, organizational, and information infrastructure.

Regarding governance, the resolution sets clear rules for the formation of the fund’s board of directors, its duties, and responsibilities. It mandates funds to provide FRA with meeting minutes for approval and regulates the executive structure, requiring a “no-objection” from the Authority before appointing individuals to key executive positions.

The said resolution emphasizes the importance of an effective internal control and risk management system. Funds must maintain organized and certified records – including policies, claims, investments, revenues, complaints, and lawsuits – with full support for electronic record-keeping.

Concerning financial disclosure and auditing, the resolution requires funds to prepare financial statements according to Egyptian Accounting Standards, submit them to the Authority by specified deadlines, and have their accounts audited by FRA-registered auditors.

Furthermore, funds must prepare comprehensive annual activity reports and periodic actuarial reports to measure fund adequacy. They must also establish an approved investment policy, adhere to FRA investment regulations, and submit periodic reports on their investments.

The resolution grants FRA the authority to intervene if violations or risks threaten the fund’s financial position or beneficiaries’ rights. Existing government insurance funds are required to reconcile their status in accordance with this resolution within a period not exceeding one year from its implementation.

Government insurance funds are entirely different from social insurance (pensions). They benefit approximately 30 million people and target specific groups against risks that insurance companies usually do not accept or those that the government chooses to manage itself.

There are currently six registered government insurance funds covering various sectors: custodians, postal services, motorized fishing vessels and their crews, motor insurance, insurance for Egyptian school students, and insurance for Al-Azhar education students.