New governance rules for Egyptian insurance and reinsurance companies

The Financial Regulatory Authority (FRA) has introduced new governance regulations for insurance and reinsurance companies.

This initiative aims to strengthen the sector’s regulatory framework, enhance transparency, integrity, and accountability, and safeguard the interests of shareholders and policyholders.

The new rules require companies to:

• Develop internal governance frameworks that define the responsibilities of boards of directors and committees, and establish policies for compliance, risk management, internal audit, investments, and the prevention of money laundering.
• Appoint an officer responsible for overseeing the implementation of these regulations and submitting quarterly progress reports to the FRA.
• Establish a board of directors comprising at least five members, with mandatory female representation.
• Prohibit board members from engaging in brokerage activities for their own benefit.

Prevent the same individual from simultaneously holding the positions of chair of the board of directors and chief executive officer.