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Egypt's FRA Mandates Compliance for Insurance Sector Under New Unified Law

Banking and Insurance

Egypt, Financial Regulatory Authority, Unified Insurance Law

Business Honor
01 November, 2024

New regulations require insurance entities to align operations with the recently enacted Unified Insurance Law.

The Financial Regulatory Authority of Egypt has introduced a new set of rules with immediate effect, to be followed by insurance firms dealing under the newly enforced Unified Insurance Law. This particular rule is one of many requirements that all firms covered by the insurance sector should adhere to: insurance firms and reinsurance firms, brokers, consultants, damage estimation experts, and healthcare program management companies.

Under Decision No. 223 of 2024, all concerned companies should update their articles of association and operational framework in conformity with the amended law as of December 1st. The unified insurance law, which entered into effect on July 11th, is supposed to help streamline and modernize the insurance sector.

To comply, companies are required to hold extraordinary general assembly meetings to approve necessary statutory amendments. Meeting records must then be submitted to the relevant administrative authority for ratification and documentation within the commercial register. Additionally, healthcare program management companies must apply for temporary licenses to continue operations until their compliance with the new regulations is finalized. If companies do not meet regularization requirements within the specified timeframe, these temporary licenses will be rendered invalid.

The FRA has emphasized the importance of providing documentation that evidences compliance steps within one week of obtaining formal approvals. Extensions may be granted for companies that present valid justifications for any delays.

This legislative update marks a significant milestone in enhancing efficiency, transparency, and competitiveness within Egypt's insurance market. The FRA is actively engaging with stakeholders across the insurance industry to ensure effective implementation of the law’s executive regulations, promoting constructive contributions from all parties involved.