الهيئة العامة للرقابة المالية

• Mandatory requirement for brokerage firms to open at least two branches within 3 years abolished
• Insurance consulting experts barred from executive roles

Dr. Islam Azzam, FRA Chairman:

• The decision aims to prevent conflicts of interest while addressing market realities to ease operational burdens on companies.

FRA Board of Directors chaired by Dr. Islam Azzam, issued Decision No. 69 of 2025, amending professional rules and standards for registering and practicing insurance and reinsurance brokerage activities. The decision is part of ongoing efforts to update the regulatory framework for insurance activities, boost operational efficiency, enhance governance and eliminate conflicts of interest.

The decision abolishes the requirement that obligated insurance and reinsurance brokerage firms to open at least two branches within three years of launching operations as a licensing prerequisite.

Practical implementation demonstrated that brokerage operations do not always require a physical geographic presence across multiple branches—especially given technological advancements and diversified service delivery channels. Enforcing mandatory physical expansion within a strict timeline imposed administrative and financial burdens that did not necessarily align with each company’s business model or operational needs.

Furthermore, the decision removes the provision that previously allowed insurance consulting experts to assume executive management roles in insurance or reinsurance brokerage firms, effectively barring them from holding executive management positions in these companies.

This amendment aligns with FRA Board Decision No. 25 of 2026 governing the registration conditions and rules for insurance consulting experts which explicitly requires that individuals registering as insurance consultants must not be registered on FRA’s accredited insurance brokers register. This ensures the prevention of conflicts of interest while reinforcing the functional independence and separation of roles within the insurance sector.

Dr. Islam Azzam, FRA Chairman stated that the new decision solidifies corporate governance policies by creating a complete operational separation between brokerage activities and advisory consulting, eliminating potential conflicts of interest in accordance with the regulatory framework established under the Unified Insurance Law No. 155 of 2024.

He added that eliminating the two-branch mandatory expansion requirement reflects FRA’s commitment to maintaining open channels with market players and adapting to practical market realities. The move grants companies greater operational flexibility to allocate resources and execute expansion plans according to client demand and individual business models, without compromising regulatory oversight standards.

FRA Chairman emphasized that regulatory updates consistently aim to strike a balance between facilitating market growth and maintaining robust oversight. Adapting to market developments across the insurance sector and non-banking financial services at large fosters market prosperity while safeguarding consumer rights.

The decision will be published in Al-Waqa’i’ Al-Misriyya and on FRA’s official website in the coming days, taking effect on the day following its publication.