Cairo: Egypt's Financial Regulatory Authority (FRA) has amended regulations for insurance and reinsurance brokerage firms, removing a requirement to open at least two branches within three years of starting operations.

According to State Information Service Egypt, the FRA explained that this requirement was eliminated after practical experience demonstrated that insurance brokerage firms do not always necessitate an extensive physical branch network. This change aligns with the growing expansion of technology and digital service channels, which have become increasingly integral to the industry.

The regulator highlighted that mandatory expansion could impose unnecessary financial and administrative burdens on companies whose business models do not necessitate additional branches. By eliminating this requirement, the FRA aims to provide brokerage companies with greater flexibility in managing their resources and planning their growth strategies.

Additionally, the amendments include a prohibition on insurance consultants holding executive management positions at insurance or reinsurance brokerage companies. This measure is intended to maintain a clear separation between brokerage and consultancy activities and to prevent potential conflicts of interest. This follows FRA regulations issued in 2026 that bar individuals seeking registration as insurance consultants from also being registered as insurance brokers.

FRA Chairman Islam Azzam noted that the removal of the branch requirement allows brokerage companies to tailor their expansion plans based on their specific business models and customer needs. The regulatory adjustments are part of the broader framework under Egypt's Unified Insurance Law No. 155 of 2024.

The decision will be implemented the day after it is published in the Egyptian Gazette.