الهيئة العامة للرقابة المالية

• The decree applies to companies engaged in all types of insurance activities, such as insurance, re-insurance, loss adjusters, insurance consulting firms and healthcare third-party administrators (TPAs).
• Companies must amend their articles of association by December to comply with the new regulations
• Health Maintenance Organizations (HMO) and Healthcare third-party administrators (TPAs) are required to submit a request for temporary licenses to continue operations during this period.
• The Authority is conducting a series of consultations with industry stakeholders to develop and implement the necessary regulations.

FRA Board of Directors, chaired by Dr. Mohamed Farid has issued decree No. 223 of 2024 to ensure compliance with the Unified Insurance Law, which came into effect on July 11, 2024.

The said decree mandates that all insurance companies, including those engaged in various types of insurance, re-insurance, loss adjusters, insurance consulting firms and healthcare third-party administrators (TPAs) must align their operations with the new law by December 1, 2024.

The decree defines healthcare third-party administrators (TPAs) as companies undertake all administrative responsibilities associated with medical insurance policies issued by insurance companies. These companies act as a third party between the insurance company and the policyholder or they may manage self-funded healthcare programs on behalf of institutions, organizations or employers.

In addition, it mandates that companies must complete the process of aligning their legal status with the Unified Insurance Law, including amending their articles of association and primary purpose. To do so, they must convene an extraordinary general meeting, obtain necessary approvals and register these amendments in the commercial registry before December 1, 2024.

Companies are required to submit a comprehensive file to the Authority, including evidence of compliance, within one week of approving the meeting minutes from the competent entity. The Authority may extend the compliance deadline upon presentation of valid justifications.

Companies must obtain approval from the competent authority for the minutes of ordinary and extraordinary general assembly meetings, as well as board of directors meetings, particularly for any amendments to their articles of association or changes to their board of directors. This requirement will remain in effect until the end of the deadline on December 1, 2024. However, prior non-objection from the Authority is necessary for the approval of these minutes.

In addition, the decree mandates that Health Maintenance Organizations (HMO) and Healthcare third-party administrators (TPAs) must include a request for a temporary license to operate in their files. This license will be valid until the companies fully comply with the Unified Insurance Law and FRA’s decrees. It’s important to note that this temporary license will be revoked if the company fails to complete the regularization process within the specified timelines outlined in the law or it’s implementing regulations.

The Unified Insurance Law, which came into effect on July 11^th , represents a significant step towards developing Egypt’s insurance sector. This law aims to enhance the efficiency and competitiveness of the sector by introducing innovative insurance products and solutions, accelerating the adoption of technology and expanding insurance coverage. By replacing four previous laws, this unified approach will support sustainable growth, attract investment, and provide new insurance coverage for various segments of society.

The new insurance law represents a significant milestone for the sector, consolidating four previously separate laws into a unified framework. This will foster sustainable growth, attract foreign investment, and expand access to innovative insurance products for a wider segment. To ensure a smooth implementation, FRA is actively engaging with all stakeholders to develop effective regulations that benefit the market, industry participants and policyholders.