The Financial Regulatory Authority (FRA) has issued a resolution concerning regulating the licensing, registration and practices of actuaries, in a step aimed at strengthening the regulatory framework.
Under the new regulations, an official register of actuaries will be establishedf. Registration is for a period of five years and renewable.
The decision stipulates that individuals and companies are barred from offering actuarial services unless they are licensed and registered with the FRA. The new rules prohibit insurance companies and private insurance funds from hiring actuaries other than those registered with the Authority, to ensure the quality and accuracy of technical estimates related to the sector.
For companies incorporated to offer actuarial services are limited to providing such services. They also have to meet the minimum capital requirement. Their shareholders and board members must include actuaries.
Individual actuaries are required to have internationally accredited professional degrees in actuarial science, such as fellowships from recognised actuarial institutes or societies, passing the tests held by the Authority, and adhering to continuous professional development requirements.
The resolution also regulates the procedures for registering foreign actuarial experts, who must have a licence from the corresponding regulatory bodies and at least 10 years of experience. They must specify their areas of work in the Egyptian insurance sector, which would have to meet the needs of the market.
Actuarial companies and experts have to obtain a professional liability insurance policy, setting a minimum value of EGP5m ($95,100) for actuarial companies, EGP1m for individuals working for insurance companies, and EGP500,000 for those working with insurance funds. The sum insured will be recalculated upon renewal according to the volume of business.
The Authority stresses the commitment of actuarial experts to the principles of integrity, impartiality and independence, maintaining data confidentiality, avoiding conflicts of interest, adhering to approved technical and professional standards, in addition to documenting all studies and reports issued by them, and not relying on estimates not supported by accurate data.