Latest news with #UnifiedInsuranceLaw
Daily News Egypt
15 hours ago
- Business
- Daily News Egypt
FRA, Italian Embassy explore cooperation in Egypt's growing non-banking financial sector
Mohamed Farid, Chairperson of the Financial Regulatory Authority (FRA), met with Italian Ambassador to Cairo, Michele Quaroni, and his accompanying delegation to discuss opportunities for cooperation in Egypt's rapidly expanding non-banking financial sector and to enhance Italian investments in this promising market. The meeting was also attended by FRA Vice Chairperson Islam Azzam, senior FRA officials, and members of the Italian Embassy's economic and investment team. During the meeting, Farid gave a detailed presentation on the latest regulatory and structural developments in Egypt's non-banking financial markets, particularly highlighting the introduction of the Unified Insurance Law. He described the law as a key milestone in modernising Egypt's legislative and regulatory framework for insurance, aimed at streamlining procedures, expanding digitalisation, and strengthening investor protections. Farid emphasised that the new law is central to improving the quality of insurance services, ensuring policyholder rights, and making the Egyptian market more attractive to foreign investors. He underlined the law's role in supporting Egypt's shift towards a more sustainable and competitive economy. The FRA Chairperson also outlined the Authority's recent initiative to launch a regulated voluntary carbon market, the first of its kind in the region under capital market supervision. This initiative is part of Egypt's broader green transition strategy and presents significant opportunities for Italian companies in clean technology and renewable energy—not just as investors, but as strategic partners in establishing new climate finance mechanisms. Farid stressed that this carbon market is designed to contribute to Egypt's national efforts to transition to a low-carbon, climate-resilient economy, aligned with global carbon neutrality goals. On the topic of financial technology and digital transformation, Farid noted that the FRA is working to build a regulatory environment that supports innovation. He highlighted several initiatives aimed at enhancing the digital infrastructure of the non-banking financial sector to promote financial inclusion and unlock new investment avenues, especially for Italian companies engaged in fintech. He added that the digitisation of non-banking financial services—particularly in insurance, capital markets, and microfinance—is essential to expanding access for all societal segments and aligns with Egypt's broader goals of financial and digital inclusion. 'We are racing against time to digitise non-banking services in support of start-ups and entrepreneurship,' Farid said, emphasising that fintech is a core driver of inclusivity and sectoral efficiency. Ambassador Quaroni expressed appreciation for the FRA's reform momentum and the rapid transformation of Egypt's non-banking financial market. He reiterated Italy's keen interest—at both the governmental and private sector levels—in exploring investment and partnership opportunities, particularly in the carbon market and the digital finance space. The Ambassador affirmed his commitment to facilitating closer cooperation through a series of technical meetings between relevant stakeholders from both countries to move forward on joint initiatives. Concluding the meeting, Farid reaffirmed the Authority's full commitment to maintaining close coordination with the Italian side. He noted that the FRA is ready to provide detailed briefings on key areas of mutual interest in order to translate these discussions into concrete investment partnerships that contribute to economic development in both countries.
Zawya
5 days ago
- Business
- Zawya
Egypt: FRA issues new rules for insurance, reinsurance brokerage under unified insurance law
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. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
5 days ago
- Business
- Zawya
Egypt's FRA issues new website and cybersecurity rules for insurance sector
Egypt's Financial Regulatory Authority (FRA) has issued new regulations establishing licensing, technical, and cybersecurity standards for the websites of all companies and individuals operating in the country's insurance sector. The new rules, outlined in Resolution No. (62) of 2025, mandate that private insurance funds with assets of EGP 10 million or more must establish an official website. The FRA will be the sole authority to issue licences for these websites, in accordance with the Unified Insurance Law No. 155 of 2024. Smaller funds and individuals working in the insurance sector will be permitted to create websites, provided they adhere to the same set of regulations. The measures are part of a broader framework outlined in the Unified Insurance Law. Article (3) of the law defines the insurance sector as comprising insurers, reinsurers, and related professions and activities. It also authorises the FRA's Board of Directors to licence other insurance services based on market demand, subject to established standards and capital requirements. Technical and Content Mandates Under the resolution, chaired by FRA Chairperson Mohamed Farid, all insurance sector websites must meet specific technical standards. These include having a responsive design for accessibility across mobile phones, tablets, and computers, as well as compatibility with all major internet browsers. Websites must also be user-friendly, provide easy access to information, and comply with the Web Content Accessibility Guidelines (WCAG) for users with disabilities. Arabic must be the primary language, with other languages optional. Search Engine Optimisation (SEO) best practices must be implemented. Entities are required to publish essential information, including a company profile, their FRA-issued licence number, detailed descriptions of services, and clear contact information. The sites must also feature financial reports, periodic disclosures, and a dedicated Frequently Asked Questions (FAQ) section. The resolution requires all website content to be updated regularly to ensure accuracy, completeness, and compliance with technical controls. Cybersecurity and Data Protection The regulations place a strong emphasis on information security, mandating a range of technical safeguards to protect user data. These include: The use of modern encryption protocols (SSL/TLS). The implementation of advanced security systems such as network firewalls, Web Application Firewalls (WAF), and Intrusion Detection/Prevention Systems (IDS/IPS). The use of anti-virus and anti-malware software (EPP/EDR). Entities must adhere to international standards, particularly ISO 27001 and NIST, and conduct annual penetration tests and regular software updates. Any security breach or cyberattack must be reported to the FRA immediately. Furthermore, all affected entities must comply with the Anti-Cyber and Information Technology Crimes Law No. 175 of 2018 and the Personal Data Protection Law No. 151 of 2020. This includes creating clear privacy policies, obtaining written consent from users before sharing their data with third parties, and providing a mechanism for users to request the modification or deletion of their data. The rules also require regular data backups for disaster recovery and the retention of system application logs for a minimum of five years. Outsourcing and Compliance The resolution permits the outsourcing of website design and development to data hosting providers that are officially registered with the FRA. However, the licensed entity must retain qualified technical staff to evaluate the quality and security of the outsourced work. An outsourcing plan approved by the board of directors is also required. The FRA said the measures are designed to regulate the creation of websites for private insurance funds and other entities in the sector. The authority stated the initiative is part of its strategy to modernise the industry's digital infrastructure, enhance digital transformation, and ensure compliance with governance, transparency, and data protection standards. All affected entities have a three-month grace period from the resolution's effective date to regularise their status. The FRA has committed to processing complete licence applications within 15 days of submission.
Daily News Egypt
6 days ago
- Business
- Daily News Egypt
Egypt's FRA issues new website and cybersecurity rules for insurance sector
Egypt's Financial Regulatory Authority (FRA) has issued new regulations establishing licensing, technical, and cybersecurity standards for the websites of all companies and individuals operating in the country's insurance sector. The new rules, outlined in Resolution No. (62) of 2025, mandate that private insurance funds with assets of EGP 10 million or more must establish an official website. The FRA will be the sole authority to issue licences for these websites, in accordance with the Unified Insurance Law No. 155 of 2024. Smaller funds and individuals working in the insurance sector will be permitted to create websites, provided they adhere to the same set of regulations. The measures are part of a broader framework outlined in the Unified Insurance Law. Article (3) of the law defines the insurance sector as comprising insurers, reinsurers, and related professions and activities. It also authorises the FRA's Board of Directors to licence other insurance services based on market demand, subject to established standards and capital requirements. Technical and Content Mandates Under the resolution, chaired by FRA Chairperson Mohamed Farid, all insurance sector websites must meet specific technical standards. These include having a responsive design for accessibility across mobile phones, tablets, and computers, as well as compatibility with all major internet browsers. Websites must also be user-friendly, provide easy access to information, and comply with the Web Content Accessibility Guidelines (WCAG) for users with disabilities. Arabic must be the primary language, with other languages optional. Search Engine Optimisation (SEO) best practices must be implemented. Entities are required to publish essential information, including a company profile, their FRA-issued licence number, detailed descriptions of services, and clear contact information. The sites must also feature financial reports, periodic disclosures, and a dedicated Frequently Asked Questions (FAQ) section. The resolution requires all website content to be updated regularly to ensure accuracy, completeness, and compliance with technical controls. Cybersecurity and Data Protection The regulations place a strong emphasis on information security, mandating a range of technical safeguards to protect user data. These include: The use of modern encryption protocols (SSL/TLS). The implementation of advanced security systems such as network firewalls, Web Application Firewalls (WAF), and Intrusion Detection/Prevention Systems (IDS/IPS). The use of anti-virus and anti-malware software (EPP/EDR). Entities must adhere to international standards, particularly ISO 27001 and NIST, and conduct annual penetration tests and regular software updates. Any security breach or cyberattack must be reported to the FRA immediately. Furthermore, all affected entities must comply with the Anti-Cyber and Information Technology Crimes Law No. 175 of 2018 and the Personal Data Protection Law No. 151 of 2020. This includes creating clear privacy policies, obtaining written consent from users before sharing their data with third parties, and providing a mechanism for users to request the modification or deletion of their data. The rules also require regular data backups for disaster recovery and the retention of system application logs for a minimum of five years. Outsourcing and Compliance The resolution permits the outsourcing of website design and development to data hosting providers that are officially registered with the FRA. However, the licensed entity must retain qualified technical staff to evaluate the quality and security of the outsourced work. An outsourcing plan approved by the board of directors is also required. The FRA said the measures are designed to regulate the creation of websites for private insurance funds and other entities in the sector. The authority stated the initiative is part of its strategy to modernise the industry's digital infrastructure, enhance digital transformation, and ensure compliance with governance, transparency, and data protection standards. All affected entities have a three-month grace period from the resolution's effective date to regularise their status. The FRA has committed to processing complete licence applications within 15 days of submission.
Daily News Egypt
10-05-2025
- Business
- Daily News Egypt
2.3 million microinsurance policies cover over 10 million Egyptians: FRA deputy head
Islam Azzam, Deputy Head of the Financial Regulatory Authority (FRA), announced that Egypt's microinsurance sector achieved notable growth during the 2023/2024 fiscal year. A total of 15 companies—six focused on property insurance and nine on life insurance—issued approximately 2.3 million microinsurance policies, extending coverage to 10.5 million citizens. This marks a 10.3% increase compared to the previous year. Azzam made these remarks during the Fourth Microinsurance Conference and the Tenth Regional Conference on Insurance Inclusion in Africa and the Middle East. He noted that Egypt's insurance sector is currently undergoing a significant transformation, supported by the country's national drive for financial inclusion and broader social protection for vulnerable groups. He revealed that FRA is preparing to issue a comprehensive set of new regulations. These will address consumer protection, introduce structured complaint-handling mechanisms, establish solvency requirements, and adopt a risk-based capital framework. As part of the ongoing implementation of the Unified Insurance Law, new governance rules are also in the pipeline. These will focus on promoting board diversity, increasing the representation of independent and female directors, and formalizing the internal structure of insurance entities through dedicated committees for audit, risk management, technology, and investment oversight. Azzam emphasized that microinsurance is no longer a peripheral product. It has evolved into a central pillar of economic and social empowerment, particularly among low-income and underserved populations. FRA views it as an essential tool in advancing the state's broader financial inclusion agenda and supporting sustainable development. He noted that microinsurance products in Egypt now offer a wide range of coverage, including protection for small, medium, and micro-enterprises against risks such as death, disability, and loan default. Insurers also provide coverage for operational risks like fire and theft. In the agricultural sector, tailored policies now protect crops, livestock, and poultry, helping farmers safeguard both their livelihoods and food security. Since 2016, FRA has taken concrete steps to establish a legislative framework specifically for microinsurance. This framework supports the sector's integration with FRA's digital infrastructure strategy for insurance distribution and aligns with the broader goals of financial and insurance inclusion. Over the years, the authority has increased the coverage cap to keep pace with inflation and evolving market dynamics. Initially set at EGP 100,000 in 2016, the cap was raised to EGP 200,000 in 2021, then to EGP 242,000 in 2024. The Unified Insurance Law authorized FRA's Board to increase this cap by up to 25% annually. Accordingly, it was raised to EGP 250,000 and then to EGP 312,500 in 2025, reflecting the Authority's proactive response to economic changes. Azzam also highlighted the transformative impact of the recently enacted Unified Insurance Law. He described it as a foundational shift for the Egyptian insurance sector, establishing a modern legal structure to regulate insurance and reinsurance activities, as well as associated services and professional functions. The law grants FRA exclusive authority to license, supervise, and regulate all insurance-related entities, consolidating oversight under a single framework to enhance market stability and regulatory efficiency. As part of this reform, FRA introduced new capital requirements that will be implemented in two phases. The second phase mandates a minimum capital of EGP 600m for insurance companies, aimed at strengthening their financial resilience. Additionally, new investment rules have been established to guide how insurers manage their funds, ensuring a balance between returns and risk while improving overall asset management performance. Insurers are now required to submit financial statements on a regular schedule to promote transparency and fiscal discipline. The Authority has also issued technical standards for calculating and building technical reserves for both property and liability insurance, ensuring that companies remain solvent and capable of meeting their obligations. Azzam added that FRA has updated regulations governing the establishment and licensing of insurance and reinsurance firms. These revised rules set clear legal and technical conditions to ensure that new market entrants are both competent and financially sound. Significantly, the Unified Insurance Law also permits the formation of specialized companies dedicated solely to microinsurance. FRA has since issued specific regulations for the founding and licensing of such companies, setting a minimum capital requirement of EGP 40m to ensure they operate on a solid financial footing and effectively serve underserved communities. Azzam reported that the past fiscal year, which ended on June 30, 2024, saw strong financial and operational performance in the microinsurance sector. These achievements reflect FRA's continued commitment to extending coverage to vulnerable populations and broadening the base of insurance beneficiaries in Egypt. He also emphasized FRA's accelerated efforts to digitize the insurance sector. The Authority is leveraging financial technology to expand access to microinsurance and promote social protection among low-income groups. One of the key milestones in this digital transition has been the introduction of online issuance for standard insurance policies, including mandatory motor insurance, term life, personal accident, and microinsurance, as permitted under Decision No. 121 of 2015 and its subsequent amendments. This digital drive is further reinforced by regulatory frameworks adopted under Fintech Law No. 5 of 2022. These include updated standards for IT infrastructure and cybersecurity, new rules for digital identity, contracts, and ledgers, and guidelines for outsourcing and data governance in financial technology operations. These frameworks are part of FRA's broader vision to modernize Egypt's non-banking financial services, align the sector with global best practices, and drive inclusive economic growth. In closing, Azzam reaffirmed FRA's dedication to continually enhancing Egypt's legislative and regulatory environment for insurance. He stressed the Authority's goal of enabling the microinsurance market to reach its full potential as a mechanism for financial inclusion, social equity, and long-term economic sustainability.
