The Financial Regulatory Authority (FRA) has formed specialised committees and working groups to prepare and draft executive controls and decisions for the insurance industry, alongside holding an open dialogue with all relevant parties on new regulations.
FRA chairman Mohamed Farid said this in his keynote speech at the Sixth Sharm Rendezvous which was organised by the Insurance Federation of Egypt on 9-11 November 2024. The theme of the event was “A Future Vision for Developing the Insurance Industry”, reported Daily News Egypt.
Mr Farid said that enacting the Unified Insurance Law is a core development in the insurance sector in Egypt this year. The law aims to increase insurance penetration and promote the development and growth of the sector, while maintaining market stability. He said that these goals are to be pursued through provisions in the unified law for introducing new compulsory insurance lines, newly established insurance pools, microinsurance, and specialised health insurers.
He pointed out that the FRA issued a resolution for the insurance industry to continue adhering to existing regulations until new executive decisions are issued in accordance with the new law. This ensures the continuity of regulating the sector during this transitional phase.
Governance rules
In addition, the FRA is currently drafting the rules of governance for insurance companies. These concern ensuring that expertise on the boards of directors of insurance companies would be diversified, determining the requirements of supervisory functions, as well as setting policies to prevent conflicts of interest and determining corporate disclosure requirements. The proposed rules would also regulate the committees formed by the boards, such as technology and investment committees.
Work is also currently underway to draft other decisions covering licensing, brokerage activities, insurance funds, capital requirements for insurance companies, reinsurance, microinsurance and standalone health insurers.