Arab Finance: The Board of Directors of the General Authority issued Financial oversightHeaded by Dr. Mohamed Farid, Resolution No. 69 of 2025, regarding setting new professional rules and standards to regulate the registration and practice of mediation activity in insurance and reinsurance, within the framework of the authority’s endeavor to enhance the efficiency of the insurance market, and to ensure the protection of the rights of customers and improve the level of services.
The decision comes in light of the implementation of the provisions of the Unified Insurance Law No. 155 of 2024, which was issued last July, and aims to control and regulate the mediation market and raise the efficiency of its workers, in line with the best global practices, and enhances insurance and financial inclusion.
The decision obligated all employees of insurance professions, including brokers, to quickly register on the electronic platform for professionals within 45 days of the decision valid, with the possibility of extending the deadline in cases accepted by the authority.
The commission also decided to increase the period of intermediaries in the record designated for that to five years instead of three, with the necessity of starting the renewal procedures at least three months before the end of the registration period, with the aim of unifying the obligations between all workers in the sector.
The new rules obligated insurance and reinsurance companies, as well as brokerage companies, to inform the authority within a week from the date of the completion of any mediator service, and the company bears the responsibility of any violations committed by the mediator until the official notification of the end of his service.
The decision stipulated the necessity of strict conditions in the members of the Board of Directors of the brokerage companies, including the failure of criminal provisions that violate honor during the last five years, and not to belong to the boards of directors or work teams in other insurance companies. The decision also stipulated the availability of integrity, good reputation, and enjoying full legal eligibility.
In the event that the institution of the mediation company is a foreign financial institution, it must obtain the approval of the corresponding supervisory authority in its mother country to practice the activity in Egypt, while adhering to the principle of combined control.
The decision stipulated that there are at least two members in the board of directors with experience in mediation or insurance activity, one of which is executive and the other is independent, with the prevention of double membership in other companies that practice the same activity.
The decision obligated brokerage companies that their capital and the paid capital should not be less than 5 million pounds, in accordance with the decision of the Board of Directors of the Authority No. 196 of 2024. The companies were also obligated to open at least two branches within three years of the start of the activity, provided that each branch is supervised by an accredited insurance broker.
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