{"id":20999109,"date":"2026-02-08T08:44:19","date_gmt":"2026-02-08T06:44:19","guid":{"rendered":"https:\/\/fra.gov.eg\/fra_news\/%d8%a7%d9%84%d8%b1%d9%82%d8%a7%d8%a8%d8%a9-%d8%a7%d9%84%d9%85%d8%a7%d9%84%d9%8a%d8%a9-%d8%aa%d8%b9%d8%af%d9%84-%d8%b6%d9%88%d8%a7%d8%a8%d8%b7-%d8%a7%d8%b3%d8%aa%d8%ab%d9%85%d8%a7%d8%b1-%d8%a7%d9%84\/"},"modified":"2026-02-08T13:50:31","modified_gmt":"2026-02-08T11:50:31","slug":"%d8%a7%d9%84%d8%b1%d9%82%d8%a7%d8%a8%d8%a9-%d8%a7%d9%84%d9%85%d8%a7%d9%84%d9%8a%d8%a9-%d8%aa%d8%b9%d8%af%d9%84-%d8%b6%d9%88%d8%a7%d8%a8%d8%b7-%d8%a7%d8%b3%d8%aa%d8%ab%d9%85%d8%a7%d8%b1-%d8%a7%d9%84","status":"publish","type":"fra_news","link":"https:\/\/fra.gov.eg\/en\/fra_news\/%d8%a7%d9%84%d8%b1%d9%82%d8%a7%d8%a8%d8%a9-%d8%a7%d9%84%d9%85%d8%a7%d9%84%d9%8a%d8%a9-%d8%aa%d8%b9%d8%af%d9%84-%d8%b6%d9%88%d8%a7%d8%a8%d8%b7-%d8%a7%d8%b3%d8%aa%d8%ab%d9%85%d8%a7%d8%b1-%d8%a7%d9%84\/","title":{"rendered":"FRA Amends Investment Regulations for Insurance &#8220;Allocated Funds&#8221;\u2013 Saturday  7 February 2026"},"content":{"rendered":"<ul>\n<li style=\"text-align: left\">The deadline to submit remediation plans for policyholder obligations is reduced from 6 months to 3 months.<\/li>\n<li style=\"text-align: left\">Deficit remediation now starts at the financial statement date instead of FRA notification date.<\/li>\n<\/ul>\n<p style=\"text-align: left\">Financial Regulatory Authority (FRA), chaired by Dr. Mohamed Farid, has issued new amendments to the investment regulations governing the &#8220;Allocated Funds&#8221; of insurance and reinsurance companies. The primary goal of this update is to significantly bolster the protection of policyholders\u2019 and beneficiaries\u2019 rights.<\/p>\n<p style=\"text-align: left\">FRA resolution No. 3 of 2026 stipulates that if a company\u2019s Allocated Funds &#8211; mandatory reserves held specifically to pay out insurance claims &#8211; are found insufficient to cover its obligations, the company must immediately fill the gap using its Free Funds. If a company&#8217;s Free Funds cannot cover the shortfall, it is granted a 3-month grace period to resolve the deficit. This is a major shift from the previous regulation, which offered a 6-month window.<\/p>\n<p style=\"text-align: left\">Allocated Funds are the compulsory reserves an insurer must hold to guarantee it can fulfill its immediate commitments to its policyholders.<\/p>\n<p style=\"text-align: left\">FRA has eliminated regulatory delays by shifting to an automatic deficit-remediation trigger based on financial reporting dates. By halving the compliance window to three months and requiring immediate recovery plans, the Authority is accelerating intervention to safeguard policyholder interests.<\/p>\n<p style=\"text-align: left\">Free Funds are defined as non-allocated resources not designated for direct policyholder obligations. They represent a company\u2019s safety margin and additional financial capacity, typically consisting of equity, retained earnings, or general reserves.<\/p>\n<p style=\"text-align: left\">Insurance companies have fully complied with FRA\u2019s December 2024 resolution regarding minimum capital requirements. By raising the floor to EGP 600 million per company, the sector witnessed a total capital injection of approximately EGP 10 billion.<\/p>\n<p style=\"text-align: left\">Additionally, FRA mandated that insurance and reinsurance companies shall invest between 2.5% and 20% of their paid-up capital in open-ended funds targeting listed equities. The sector successfully met these mandates by allocating a further EGP 2.6 billion toward open-ended funds throughout 2025.<\/p>\n<p style=\"text-align: left\">\n","protected":false},"author":124,"featured_media":20943112,"parent":0,"template":"","format":"standard","categories":[142,144],"tags":[3754,3791,3809,4216],"fra_news_taxonomy":[2137,2138],"news_paper_taxonomy":[],"_links":{"self":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news\/20999109"}],"collection":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news"}],"about":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/types\/fra_news"}],"author":[{"embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/users\/124"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/media\/20943112"}],"wp:attachment":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/media?parent=20999109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/categories?post=20999109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/tags?post=20999109"},{"taxonomy":"fra_news_taxonomy","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news_taxonomy?post=20999109"},{"taxonomy":"news_paper_taxonomy","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/news_paper_taxonomy?post=20999109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}