The Financial Regulatory Authority (FRA) has issued a decision introducing -- for the first time -- an integrated regulatory framework governing the licensing and registration of representative offices of foreign insurance and reinsurance companies in Egypt.
The move aims to enhance the competitiveness of the Egyptian insurance market and pave the way for the transfer of international expertise and best practices.
FRA Chairman Dr Mohamed Farid said the new regulations form part of the Authority’s ongoing efforts to develop the legislative and regulatory infrastructure of the insurance sector, in line with the Unified Insurance Law. He noted that representative offices of leading global insurance and reinsurance companies can play a key role in transferring advanced insurance technologies and strengthening risk management practices in the local market.
Clear licensing requirements
The decision sets out a number of core conditions for licensing representative offices. Chief among these is that the foreign insurance or reinsurance company must be subject to the supervision of a regulatory authority equivalent to the FRA in its home country. Companies are also required to submit an official statement confirming the approval of the relevant foreign regulator for expansion into the Egyptian market.
In addition, companies must provide a written undertaking confirming that the representative office’s activities will be limited to market research, public relations, and communication, and to acting as a technical liaison between the Egyptian market and the company’s headquarters abroad. The decision explicitly prohibits representative offices from engaging in insurance or reinsurance activities, whether directly or indirectly.
Existing representative offices have been granted a six-month grace period to regularise their status in accordance with the new regulations.