Egypt’s FRA issues first governance rules for insurers, reinsurers to boost transparency

Egypt’s Financial Regulatory Authority (FRA) has issued the country’s first binding corporate governance rules for insurance and reinsurance companies, aimed at strengthening transparency, accountability, and market stability, the regulator said in a statement Monday.

The new framework, approved under FRA Board Decision No. 200 of 2025, requires all insurance and reinsurance firms to establish internal governance charters detailing the duties of their boards and committees, as well as policies for compliance, risk management, internal audit, investment, and anti–money laundering.

Companies must appoint a governance officer to oversee implementation and file quarterly progress reports to the FRA. They are also required to publish annual governance reports signed by both the board chair and CEO, disclosing ownership structures, board composition, and performance of oversight functions.

The regulations mandate a minimum of five board members, the majority of whom must be non-executive, including at least two independent members and female representation. The decision prohibits combining the roles of board chair and chief executive officer.

To ensure board effectiveness, companies must form ten specialised committees—including audit, risk, nomination and remuneration, investment, governance, and sustainability committees—some of which must be chaired by independent directors.

The FRA also introduced new disclosure and transparency obligations. Companies must make all general assembly meeting materials publicly available in advance and are now permitted to record meetings electronically in audio and video formats to safeguard records and ensure digital traceability.

The rules impose strict conflict-of-interest policies, barring board members from engaging in insurance brokerage activities on their own account or having personal interests in company contracts without prior shareholder approval.

Firms have one year to align with the new governance framework and amend their bylaws accordingly. The new board composition and committee rules will take effect with the next board elections, the FRA said.

The move is part of Egypt’s broader effort to modernise its financial sector’s regulatory infrastructure, enhance investor confidence, and align with international standards in insurance supervision.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser