This decision strikes a crucial balance, showcasing FRA’s dedication to flexible regulatory enforcement while ensuring the continued operations of regulated entities and fostering market stability.
- The one-year extension, effective July 11, 2025, will ease the transition for companies to comply with the new law.
- The Unified Insurance Law introduces new investment controls and ratios and revises timelines for financial statement preparation and presentation, significantly boosting transparency and governance.
FRA’s decision aims to enhance sector’s performance and facilitate stakeholders, acknowledging that some entities need more time to meet the new regulatory requirements. This move underscores FRA’s dedication to balance effective legislative implementation with fostering market stability.
FRA’s Board of Directors, Chaired by Dr. Mohamed Farid, issued Resolution No. 102 of 2025. This resolution officially extends the compliance period for all companies and entities operating in the insurance sector that are subject to the Unified Insurance Law (Law No. 155 of 2024).
Specifically, the grace period for compliance, outlined in Article Seven of the Unified Insurance Law, will be extended for an additional year. This extension kicks in on July 11, 2025, which marks the end of the law’s first year in effect.
Article Seven of the Unified Insurance Law originally required all insurance sector entities to regularize their status within one year of the law’s effective date. However, FRA’s Board has the power to extend this grace period for additional terms, up to a maximum of three years from the law’s effective date.
The Unified Insurance Law itself introduces several key changes. These include new rules, controls and specific ratios for how insurance and reinsurance companies invest their funds. The goal here is to strike a balance between returns and risks and to boost asset management efficiency. Furthermore, the law sets mandatory deadlines for preparing and presenting financial statements for all insurance companies and pools, which in turn strengthens transparency and financial governance.
The new regulations under Law No. 155 of 2024 aim to activate the insurance sector. They allow property insurance companies to expand into other insurance branches and introduce new regulatory procedures.
This resolution shall boost the sector’s performance and efficiency; simplify the transition for all involved parties. The Authority clearly recognizes that some entities need more time to align with these new regulatory demands. This approach highlights FRA’s dedication to balance effective legislative implementation with fostering industry stability.
Furthermore, this resolution underscores FRA’s commitment to support the insurance market’s growth and stability. It provides regulated entities many opportunities to align their operations with the new legislative frameworks, ensuring a seamless and efficient transition to a more effective regulatory landscape.
FRA remains committed to continually refining its regulatory and legislative framework. This dedication will enhance market efficiency, sharpen competitiveness, bolster customer trust, and broaden access to non-bank financial services, ultimately fostering comprehensive insurance, financial and investment inclusion.
The Unified Insurance Law represents a pivotal advancement in Egypt’s insurance market’s legislative framework. Crucially, the robust performance of local insurance companies empowers the Egyptian market to connect with global counterparts. Recognizing these international markets as vital gateways linking domestic and international investors, the Authority is committed to continuously enhancing the regulatory environment to reinforce this essential role.
Last modified: July 2, 2025