The Egypt Financial Regulatory Authority held a consultative meeting with managing directors of Egyptian insurance companies and their reinsurance heads on planned regulatory standards for reinsurance. The authority is considering a framework aligned with international standards that would require insurers to maintain an integrated reinsurance policy covering risk appetite, portfolio diversification, risk concentration, cession limits, target reinsurance markets and the firm’s capacity to bear credit risk. The proposals discussed would require each insurer’s board to approve the reinsurance policy, submit it to the authority, notify any changes and review its effectiveness periodically. Firms would also need procedures to assess and manage reinsurance risk through regular monitoring and analysis, as well as reinsurance stress testing and risk scenarios to gauge the effect on capital requirements. The authority linked the initiative to completing the insurance regulatory and supervisory framework under the Unified Insurance Law No. 155 of 2024 and to aligning with International Association of Insurance Supervisors recommendations. The authority said it will continue consulting market participants before setting or amending regulatory frameworks. It also said reinsurance policy should be consistent with each company’s broader risk assessment and management plan and be reflected in annually renewed outward reinsurance agreements.
Egypt Financial Regulatory Authority2026-05-21
Egypt Financial Regulatory Authority consults insurers on proposed reinsurance standards tied to board approved policies and stress testing
The Egypt Financial Regulatory Authority held a consultative meeting with insurance and reinsurance executives on planned reinsurance standards aligned with international practices and the Unified Insurance Law No. 155 of 2024. Proposals would require insurers to maintain a board-approved reinsurance policy, submit and update it with the authority, and implement procedures for monitoring reinsurance risk, including stress testing and capital impact analysis. The authority emphasized consistency between reinsurance policies and firms’ broader risk management plans and will continue market consultations before finalizing the framework.