The Egyptian Financial Regulatory Authority (FRA) has issued a board decision setting a unified framework for supervising government insurance funds, establishing prior, ongoing and ex-post oversight and requiring registration and a pre-commencement on-site inspection before a fund can operate. The decision provides that a government insurance fund is established by a decision of the Prime Minister based on a proposal from the FRA board, with public bodies able to submit proposals subject to specified information and documentation requirements. The FRA may require approved actuarial studies to assess resource adequacy and the fund’s ability to meet obligations. Governance requirements cover the composition and responsibilities of the fund’s board, submission of board minutes to the FRA for approval, and a requirement to obtain an FRA no-objection before appointing key executive roles. Funds must maintain effective internal controls and risk management, keep organised records (including policies, claims, investments, revenues, complaints and litigation, including electronically), and produce periodic financial statements under Egyptian Accounting Standards audited by FRA-registered auditors, alongside annual activity reports, periodic actuarial reports and periodic investment reports under an approved investment policy that complies with FRA investment rules. The FRA is also empowered to intervene where violations or risks threaten a fund’s financial position or beneficiaries’ rights. Existing government insurance funds are required to align with the new rules within no more than one year from the decision’s effective date.

Original source View in tracker