FRA issues new rules for insurance, reinsurance brokerage under unified insurance law
Updated 6/18/2025 12:11:00 PM
Arab Finance: The Board of Directors of the Financial Regulatory Authority (FRA), chaired by Mohamed Farid, has issued decision No. 69 of 2025, setting professional rules and standards for the registration and practice of insurance and reinsurance brokerage, as per a statement.
The decision is part of the FRA’s strategy to raise the efficiency and professionalism of the insurance market, aligning it with international standards and strengthening the protection of all parties involved.
It is based on the provisions of the Unified Insurance Law No. 155 of 2024, outlining the responsibilities and registration procedures for brokers defined as natural or legal persons licensed by the FRA to mediate insurance or reinsurance deals in return for commission or fees.
Under the new rules, all brokers must register on the FRA’s electronic platform within 45 days of the decision’s effective date.
The registration period in the authority’s registry has been extended from three to five years, with renewal applications to be submitted at least three months before expiry. Companies must also notify the FRA within one week of any broker's termination.
Moreover, the decision introduces several governance and integrity requirements. Board members of brokerage companies must not have any criminal record related to moral turpitude in the five years preceding application, must not be affiliated with insurance companies, and must enjoy full civil rights.
Hence, companies must include at least two board members with relevant experience, one executive and one independent.
Foreign companies or financial institutions wishing to operate as brokers in Egypt must obtain approval from their home regulator and be subject to consolidated oversight.
Reinsurance brokerage is restricted to legal entities, and no company may combine both insurance and reinsurance brokerage activities without separate licenses.
The decision also mandates a minimum issued and paid-up capital of EGP 5 million, as set out in FRA decision No. 196 of 2024.
Each company must open at least two branches within three years of commencing operations, with each branch led by a registered broker.
For the first time, the FRA will allow freelance brokers to apply to operate through private offices, provided they meet specific documentation and staffing requirements.
Existing private offices must regularize their status within one year. Brokerage companies must also convene general assemblies annually within three months of their fiscal year-end.
Additionally, brokers must maintain complete records of transactions, commissions, claims, and cancellations, in both paper and electronic formats, to improve oversight and standardize practices across the sector.
The new regulations aim to increase public awareness of insurance activities, enhance sector inclusion, and align Egypt’s insurance market with international best practices.
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