الهيئة العامة للرقابة المالية

Dr. Mohamed Farid– FRA Chairman:

• These rules catalyze InsurTech transfer and bolster local risk management frameworks.
• Licensed offices must register with FRA and renew their license annually.
• The new rules simplifies the process for international firms to enter the Egyptian market.
• Existing offices have six months to comply with the new regulations.
• Offices are restricted to market research and liaison duties between the local market and global headquarters.

In a move to enhance the competitiveness of the Egyptian insurance market and attracting international expertise, Financial Regulatory Authority (FRA), chaired by Dr. Mohamed Farid, issued resolution No. 321 of 2025. This resolution establishes, for the first time, a comprehensive regulatory framework for licensing and registering representative offices of foreign insurance and reinsurance companies within the Arab Republic of Egypt.

The resolution specifies licensing requirements for establishing these offices, details the mandatory registration with the Authority, and defines the formal procedures for evaluating and approving applications.

 Dr. Mohamed Farid, FRA Chairman emphasized that these regulations complement the Authority’s ongoing efforts to develop the legislative infrastructure of the insurance sector under the Unified Insurance Law. He noted that the presence of global representative offices will facilitate the transfer of the latest insurance technologies and significantly enhance risk management mechanisms in the local market.

Applicants must be overseen by a comparable regulatory body in their home country and provide formal proof that their home regulator approves their entry into the Egyptian market.

The resolution mandates that foreign companies provide a formal pledge to restrict activities exclusively to market research, public relations, and liaison services. Serving solely as a technical bridge to their global headquarters, these offices are strictly prohibited from engaging in any direct or indirect insurance or reinsurance operations, ensuring the integrity of the regulated market remains uncompromised.

Licensed representative offices must be registered in FRA register. This database will contain essential data including the company’s legal details, the office’s commencement date, and the credentials of manager-in-charge.

To secure a license, companies must follow a structured application process using FRA’s prescribed forms. The submission must include the parent company’s global headquarters details, the local office’s address, and an Arabic-translated copy of the Articles of Incorporation. Financial transparency is ensured through the requirement of audited financial statements and auditor reports for the two most recent fiscal years.

 FRA mandates the appointment of a manager-in-charge with at least five years of insurance industry experience. This must be accompanied by a strategic roadmap detailing the office’s objectives, feasibility, and organizational structure, including staff headcount. Finally, applicants are required to disclose their credit rating (if applicable) and provide a formal, binding pledge to adhere to all Egyptian laws and regulatory frameworks.

 FRA will decide on licensing within 30 days of receiving a complete application and reserves the right to conduct field inspections. Registration requires annual renewal, with applications and a performance report due two months before expiry.

Furthermore, FRA must be notified within 10 days of any changes to office data or management. If a company decides to suspend activities, it must notify the Authority at least two months in advance.

Existing representative offices have a six-month window to align their operations with the new rules, effective immediately from the resolution’s implementation date.

To maintain market discipline, FRA retains full regulatory authority and may strike an office from the register for non-compliance. Such action may be taken if an entity fails to rectify a violation within 30 days of a formal warning or fails to meet the annual renewal deadline.