Egypt's Financial Regulatory Authority (FRA) has granted a six-month extension for companies in the insurance and reinsurance brokerage sectors to meet minimum capital requirements. The new deadline is now June 2026.
The extension also applies to firms specializing in loss assessment, inspection, and insurance consultancy services.
Under the updated regulations, insurance and reinsurance brokerage firms must increase their capital to at least LE5 million, equivalent to approximately $106,000.
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Risk assessment, loss inspection, insurance consultancy, and actuarial expertise firms are required to reach a minimum capital threshold of LE3 million.
The capital requirements implement provisions of the Unified Insurance Law No. 155, enacted in July 2024. The FRA first introduced the mandate in January 2025, giving companies one year to comply before granting the current extension.
According to the FRA, the increased capital base is intended to enhance capital adequacy, enabling firms to underwrite larger risks supported by a more robust financial foundation. The regulator stated the measures contribute to strengthening financial stability across the insurance sector and support efforts to increase insurance penetration in Egypt.
The authority also indicated that the higher thresholds will facilitate companies' adoption of modern software and information systems to improve service delivery, while ensuring their ability to meet obligations to policyholders.
The reforms are part of broader efforts to modernize Egypt's insurance intermediary sector. The FRA issued Resolution No. 69 of 2025 in June, setting new professional standards for insurance and reinsurance brokerage. The regulator described the move as aligning Egypt's market with global best practices.
Egypt's capital requirements remain notably lower than those in neighboring markets. In the UAE, insurance brokers must maintain minimum paid-up capital of AED 3 million, equivalent to approximately $817,000, according to regulatory guidelines.
Saudi Arabia's central bank requires SAR 3 million, or approximately $800,000, for insurance brokers conducting aggregation activities.
Across the Middle East, regulators are tightening intermediary standards. The UAE's Insurance Brokers' Regulation 2024 took effect in February 2025, introducing changes to licensing, financial solvency, and corporate governance requirements.
Morocco is transitioning to a Solvency II-inspired risk-based framework overseen by ACAPS, with the objective of strengthening solvency standards.
The FRA has mandated that affected companies submit a detailed timeline outlining their capital increase plans within one month of the regulator's announcement.
The authority has also imposed restrictions on profit distribution during the compliance period. Companies are prohibited from distributing cash dividends to shareholders until they have met the minimum capital requirements and obtained FRA approval.
The regulator stated that the extension provides companies with sufficient time to comply while maintaining the sector's trajectory toward stronger financial foundations.
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