FRA issues temporary licensing regulations for specialized medical insurance firms
Updated 6/15/2025 2:44:00 PM
Arab Finance: The Financial Regulatory Authority (FRA) has issued new licensing regulations to temporarily authorize specialized medical insurance companies and healthcare program management companies to operate under the Unified Insurance Law no. 155 of 2024, as per a statement.
The move aims to regulate the operations of existing entities, protect customer interests, and maintain service continuity, while enabling companies to align with updated legal requirements.
The decision allows eligible companies to apply for a temporary license to continue operations until they complete the process of regularizing their status.
These temporary licenses will be revoked if companies fail to comply within the granted period, which has been extended by one year as of July 11th, 2025, under board resolution no. 102 of 2025.
The licenses are renewable, and new entities seeking to enter the market must apply for a permanent license under the new law.
The FRA clarified that the licensing framework is the outcome of extensive community dialogue with stakeholders to ensure a practical and inclusive legislative impact.
The temporary licensing conditions stipulate that companies must take the form of joint-stock companies with fully paid-up capital and equity no less than their paid-in capital.
Specialized medical insurance companies must have a minimum capital of EGP 10 million and a portfolio size of at least EGP 100 million at the time of application. They must also have had contracts in effect for no less than three years prior to the issuance of the law.
The companies must possess the necessary technological infrastructure and information systems to support their activities.
They are also required to have a qualified administrative structure, including technical personnel such as managing directors, underwriting or claims officers, and compensation or medical approvals officers, depending on the company’s type. These personnel must pass FRA-specified qualification tests.
To obtain a temporary license, companies must submit a formal application to the FRA along with several documents.
These include a plan and timetable to regularize their status, a commitment not to distribute dividends until minimum capital levels are met, and proof of compliance with regulatory protections such as customer data privacy and readiness for electronic integration with the Authority.
Other requirements include updated articles of association, a commercial registration certificate, tax card, and statements proving no bankruptcy or criminal judgments against board members or shareholders.
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