The Egypt Financial Regulatory Authority has issued a comprehensive regulatory framework governing how life and property insurance companies can amend their existing licences to start conducting microinsurance in the Egyptian market. The framework sets out approval steps, documentation and transparency requirements, and provides that the authority will decide on a complete application within 30 days. Under the decision, companies must first obtain preliminary approval from the ordinary general assembly, and takaful insurers must also secure approval from the Sharia Supervisory Committee. Applicants must prepare “no unknowns” due diligence reports covering financial, technical, legal and tax aspects, approved by specialist advisers and the board. The rules also require firms to address any in-force policies that are incompatible with the new activity either by fully discharging the company’s obligations, transferring the policies to another licensed insurer, or running them off while committing to liquidate them within no more than one year and fully segregating their accounts. A plan to close any carried-forward losses against shareholders’ equity and to comply with risk-based capital adequacy requirements under the Unified Insurance Law is also required. Before calling an extraordinary general assembly, the company must obtain the authority’s no-objection, supported by a technical and economic feasibility study and a detailed five-year business plan covering product development, use of technology, governance and internal controls, and training. The company must publish notice in two widely circulated daily newspapers and on its website to allow interested parties to submit objections to the authority within one month of publication, after which the authority may conduct an on-site inspection or appoint experts at the company’s expense. After receiving the no-objection, the firm must implement corporate changes (including name and objects), align with capital requirements, and submit proposed policy documentation and adequate reinsurance arrangements.
Egypt Financial Regulatory Authority 2026-02-05
Egypt Financial Regulatory Authority issues framework for insurers to amend licences to conduct microinsurance
The Egypt Financial Regulatory Authority has introduced a framework for life and property insurance companies to amend licenses for microinsurance. It outlines approval steps, documentation, transparency, due diligence reports, policy management, and compliance with risk-based capital adequacy under the Unified Insurance Law. Companies must secure preliminary approvals, publish objection notices, and align with capital and corporate requirements before proceeding.