The Egypt Financial Regulatory Authority, through remarks by its Chairman Mohamed Farid at a discussion with the American Chamber of Commerce in Egypt’s insurance committee, set out its priorities for expanding insurance’s role in the economy by implementing the Unified Insurance Law, accelerating sector digitalisation to advance insurance inclusion, and updating the framework for private pension and insurance funds. The Unified Insurance Law (Law No. 155 of 2024) consolidates four previously separate insurance laws and is positioned as the basis for new coverages and stronger competitiveness, with an emphasis on governance and policyholder protection. The framework provides for new compulsory insurance lines and allows the FRA board to propose additional mandatory covers for Cabinet approval; examples referenced included insurance on government assets, divorce-related risks, cyber risks, and certain professional liability policies, with these compulsory lines currently under study for phased future application. Implementation work is being supported by specialised committees and working groups drafting executive rules and decisions alongside continued market dialogue. In microinsurance, the FRA highlighted Board Decision No. 196 of 2024 setting a minimum paid-in capital of EGP 40m for microinsurance companies, and it pointed to distribution models involving microfinance institutions to reach lower-income segments. The regulator also provided market indicators, citing 39 supervised insurance companies at end-2024 (17 life and 22 non-life), alongside 96 insurance brokers, 31 loss adjusters, and nine advisory firms. Gross written premiums rose 34.1% year on year to EGP 82.3bn in the fiscal year ended June 2024, paid claims increased 34.2% to EGP 36.7bn, and sector investments reached EGP 298.2bn in June 2024 (up from EGP 208.8bn in June 2023). Separately, the American Chamber’s CEO indicated that requirements are close to being finalised for a partnership with the FRA’s Financial Services Institute to deliver a training programme for non-banking financial sector professionals.
Egypt Financial Regulatory Authority 2025-01-20
Egypt Financial Regulatory Authority outlines insurance reform agenda under the Unified Insurance Law and a digitalisation drive
The Egypt Financial Regulatory Authority aims to enhance the insurance sector's economic role by implementing the Unified Insurance Law, promoting digitalisation, and updating private pension and insurance fund frameworks. The law consolidates previous laws, introduces new compulsory insurance lines, and emphasizes governance and policyholder protection. Market indicators show significant growth, with gross written premiums rising 34.1% to EGP 82.3bn and sector investments reaching EGP 298.2bn by June 2024.