Egypt’s FRA forms committee for insurance pools

Egypt’s Financial Regulatory Authority (FRA) has formed a committee to prepare a unified model for the bylaws of insurance pools in line with the Unified Insurance Law No. 155 of 2024, the FRA said on Saturday.

The committee will include several FRA leaders and officials, while its chairman may invite specialists and experts to attend meetings and assist with its work without voting rights.

The committee has been assigned 11 responsibilities, including reviewing the existing bylaws of insurance pools, identifying similarities and differences, and determining provisions that can be standardised across the pools. It will also develop indicative rules covering governance, management, disclosure, and conflicts of interest.

The committee will establish controls governing membership and members’ rights and obligations, as well as frameworks for forming general sssemblies and boards of directors, their responsibilities, and requirements for holding positions. It will also set controls for financial systems, investment management, internal control, and risk management.

Other responsibilities include establishing frameworks for specialised committees, particularly audit, risk, and investment committees; setting rules for dispute settlement and amendments to bylaws; and preparing the unified model and the regulatory decisions required for its approval and implementation.

The committee will also propose a mechanism and timeframe for existing insurance pools to comply with the unified model.

Five insurance pools currently operate in Egypt: the Nuclear Constructions Insurance Pool, the Railway, Metro and Highway Accident Insurance Pool, the Civil Liability from Construction Insurance Pool, the Egyptian Compulsory Insurance Pool for Civil Liability Arising from Motor Vehicle Accidents, and the Egyptian Pool for Travel Insurance.