{"id":23520568,"date":"2026-06-25T09:37:34","date_gmt":"2026-06-25T06:37:34","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%d9%8f%d8%b5%d8%af%d8%b1-%d9%85%d8%b9%d8%a7%d9%8a%d9%8a%d8%b1-%d8%ac%d8%af%d9%8a%d8%af%d8%a9-%d9%84%d8%a5\/"},"modified":"2026-06-30T14:50:15","modified_gmt":"2026-06-30T11:50:15","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%d9%8f%d8%b5%d8%af%d8%b1-%d9%85%d8%b9%d8%a7%d9%8a%d9%8a%d8%b1-%d8%ac%d8%af%d9%8a%d8%af%d8%a9-%d9%84%d8%a5","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%d9%8f%d8%b5%d8%af%d8%b1-%d9%85%d8%b9%d8%a7%d9%8a%d9%8a%d8%b1-%d8%ac%d8%af%d9%8a%d8%af%d8%a9-%d9%84%d8%a5\/","title":{"rendered":"FRA Introduces New Reinsurance Standards to Strengthen Market Stability and Solvency \u2013 Thursday 25 June 2026"},"content":{"rendered":"<p dir=\"ltr\" style=\"text-align: left\"><strong><span style=\"color: #800000\">Dr. Islam Azzam \u2013 FRA Chairman:<\/span><\/strong><\/p>\n<ul style=\"text-align: left\">\n<li><span style=\"color: #800000\">FRA aligns with International Association of Insurance Supervisors (IAIS) best practices to drive sector efficiency and investment appeal.<\/span><\/li>\n<li><span style=\"color: #800000\">The new resolution mandates strict integration between corporate reinsurance frameworks and risk management systems while elevating governance standards.<\/span><\/li>\n<li><span style=\"color: #800000\">Proactive and periodic risk assessment measures are mandated, led by &#8220;stress testing&#8221; and contingency planning.<\/span><\/li>\n<li><span style=\"color: #800000\">A three-month grace period has been granted for compliance and submitting the required policies to the Authority.<\/span><\/li>\n<\/ul>\n<p dir=\"ltr\" style=\"text-align: left\">FRA Board of Directors chaired by Dr. Islam Azzam, has issued a comprehensive resolution establishing new regulatory standards for reinsurance operations. Serving as a crucial regulatory extension of the Unified Insurance Law No. 155 of 2024, this measure aims to upgrade risk management frameworks across the insurance sector.<\/p>\n<p dir=\"ltr\" style=\"text-align: left\">Resolution No. 98 of 2026, now officially publish in the official gazette, sets a robust new framework for corporate reinsurance practices. These newly implemented standards serve as a vital tool for risk distribution\u2014engineered specifically to reinforce corporate solvency, prevent default exposures, maximize consumer protection and safeguard long-term industry stability.<\/p>\n<p dir=\"ltr\" style=\"text-align: left\">&#8220;This regulatory overhaul reflects FRA&#8217;s focus on developing insurance landscape,&#8221; stated FRA Chairman Dr. Islam Azzam. &#8220;Our target is to keep pace with evolving global dynamics and structural recommendations issued by the International Association of Insurance Supervisors (IAIS). By doing so, we elevate insurance efficiency and sharpen the sector&#8217;s competitive edge for international investment.&#8221;<\/p>\n<p dir=\"ltr\" style=\"text-align: left\">He added that the standards established by the Authority represent one of the most critical technical tools for risk management. They require the formulation of a cohesive reinsurance policy that clearly justifies the utilization of reinsurance as a risk-transfer mechanism and demonstrates its economic viability for the company. This policy must explicitly outline the company&#8217;s risk appetite and portfolio diversification based on the specific threats it faces. Furthermore, it must define the company&#8217;s capacity to absorb credit risks arising from its dealings with reinsurers, identify target reinsurance markets, establish selection criteria for reinsurers, outline scenarios for engaging external parties\u2014such as reinsurance brokers or Managing General Agents (MGAs)\u2014along with their selection criteria, and detail the procedures required to manage liquidity risks associated with reinsurance contracts.<\/p>\n<p dir=\"ltr\" style=\"text-align: left\">\u00a0Dr. Islam Azzam pointed out that all insurance companies must submit their baseline reinsurance frameworks to FRA for review. Any subsequent structural amendments or updates to active programs must be reported to the Authority within a maximum of two months from their formal adoption or renewal.<\/p>\n<p dir=\"ltr\" style=\"text-align: left\">The new resolution obligates insurance companies to design reinsurance programs that align proportionately with their business volume and capital bases. It further requires them to establish strict risk retention limits and define the maximum financial liabilities they can absorb, thereby striking an optimal balance between business expansions and maintaining long-term corporate financial stability.<\/p>\n<p dir=\"ltr\" style=\"text-align: left\">To reinforce companies&#8217; resilience against crises and exceptional circumstances, the resolution \u00a0mandates the implementation of comprehensive reinsurance risk management procedures. These include conducting periodic risk reviews, drafting contingency plans to address potential defaults or bankruptcies among reinsurers, and performing stress testing alongside various scenario analyses to measure the impact of potential risks on companies&#8217; financial positions and capital requirements. Furthermore, companies must actively identify, monitor, assess, and control these exposures, while putting the necessary emergency response plans in place to mitigate them.<\/p>\n<p dir=\"ltr\" style=\"text-align: left\">Furthermore, the resolution introduces several regulations to enhance transparency and corporate governance, including requiring absolute clarity in reinsurance contract terms which must explicitly state the provisions to be followed in the event of insolvency or bankruptcy of any contracting party. It also obligates companies to provide FRA with their reinsurance treaties along with all related data and statistics. This allows the Authority to closely monitor concentration and credit risks associated with reinsurers and take necessary regulatory actions in a timely manner.<\/p>\n<p dir=\"ltr\" style=\"text-align: left\">Additionally, it maximizes the role of insurance companies&#8217; boards of directors in overseeing and periodically reviewing reinsurance policies and programs, while obligating companies to notify FRA of any material amendments or deviations during implementation. This serves to reinforce the principles of corporate governance, internal controls, and risk management.<\/p>\n<p dir=\"ltr\" style=\"text-align: left\">Furthermore, the resolution grants insurance companies a three-month grace period, ending September 18, to align their positions and submit their approved reinsurance policies to the Authority.<\/p>\n","protected":false},"author":124,"featured_media":21654450,"parent":0,"template":"","format":"standard","categories":[142,144],"tags":[3704,3754,3791,3910,5247],"fra_news_taxonomy":[2137,2138],"news_paper_taxonomy":[],"_links":{"self":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news\/23520568"}],"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\/21654450"}],"wp:attachment":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/media?parent=23520568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/categories?post=23520568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/tags?post=23520568"},{"taxonomy":"fra_news_taxonomy","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news_taxonomy?post=23520568"},{"taxonomy":"news_paper_taxonomy","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/news_paper_taxonomy?post=23520568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}