Egypt’s Financial Regulatory Authority (FRA) has issued a comprehensive regulatory framework to govern government insurance funds, establishing an integrated system of oversight to ensure financial sustainability and protect the rights of approximately 30 million beneficiaries.
The new rules, issued under Decision No. 265 of 2025 by the FRA’s Board of Directors, create an end-to-end supervisory structure covering the entire lifecycle of a fund. This includes mandatory registration, internal controls, financial disclosure, risk management, and investment policies, according to a statement from FRA Chairman Dr. Mohamed Farid.
Dr. Farid said the decision marks an important step toward enhancing oversight by introducing clear, enforceable rules that go beyond periodic monitoring. He noted that the framework ensures funds are operationally and institutionally prepared before commencing activities, while promoting disciplined management of resources to achieve long-term financial sustainability.
Under the framework, government insurance funds must be established by a decree from the Prime Minister following a proposal from the FRA’s Board. Public entities proposing new funds must submit accredited actuarial studies to verify the adequacy of resources and the fund’s ability to meet future obligations. The FRA is now prohibited from allowing funds to start operations before they are registered and have passed pre-operational on-site inspections of their administrative and information systems.
The decision sets specific governance standards for board formations and responsibilities. Funds are required to submit board meeting minutes to the FRA for approval, while key executive appointments are subject to the authority’s prior non-objection. Internal control and risk management systems have been designated as the primary line of defence for protecting fund assets.
Regarding financial transparency, funds must prepare financial statements in accordance with Egyptian Accounting Standards and submit them to the FRA within specified deadlines. Accounts must be audited by FRA-registered auditors. Furthermore, funds must issue annual activity reports, periodic actuarial assessments, and regular disclosures on investment activities.
The FRA has been granted broad powers to intervene in cases of violations or risks that threaten a fund’s financial position. Existing government insurance funds have been given a one-year deadline to bring their operations into compliance with the new regulations.
Government insurance funds in Egypt are distinct from the national social insurance and pension systems. They are designed to cover specific risks typically rejected by private insurers or managed directly by the state. Currently, six such funds are registered with the FRA, covering areas including postal service risks, mechanized fishing vessels, transport vehicle accidents, and insurance for students in public and Al-Azhar education institutions.
