Egypt Financial Regulatory Authority regulates insurers’ payments to insurance product marketers and requires accredited actuarial studies

The Egypt Financial Regulatory Authority has issued a first-of-its-kind decision setting controls on the remuneration insurance companies pay to entities that market and distribute insurance products, aiming to prevent excessive marketing costs from being passed on to policyholders and to support fair pricing and insurer sustainability. Decision No. 267 of 2025 requires insurers to provide accredited actuarial studies to evidence that commissions and incentives are not reflected in customers’ premiums beyond their fair value and do not harm policyholders’ rights or the insurer’s long-term profitability. Insurers must submit an application to the Authority including the proposed marketing contract and a complete breakdown of remuneration types, including commissions, signing bonuses, performance incentives and marketing expenses, alongside calculation bases, payment method and accounting treatment. The decision covers marketing entities approved by the Authority, including banks licensed by the Central Bank of Egypt, the National Postal Authority, branches of Nasser Social Bank, telecommunications companies and information systems networks for digital marketing, and gives the Authority power to require repricing or contract amendments if customer interests or the insurer’s solvency are adversely affected, while prohibiting payments that distort competition or undermine policyholder rights or future profits.