The Egyptian Financial Supervisory Authority, led by Dr. Islam Azzam, has issued a circular to clarify the deadlines for insurance and reinsurance companies to comply with new governance rules. The circular, numbered 3 for 2026, interprets the application of certain provisions of the Authority's decision 200 of 2025 regarding governance rules for insurance companies. This decision was made in implementation of the Unified Insurance Law issued by Law 155 of 2024.
The circular defines the scope of application for extending the deadline for insurance and reinsurance companies to comply with governance rules. This comes after the Authority's decision 173 of 2026, which extended the deadline by three months in response to inquiries from several companies. The move aims to deepen communication with the insurance sector and eliminate any ambiguity that may arise from interpretations of the legislative and regulatory framework.
The circular differentiates between the conditions required for the formation of company boards of directors and the committees formed by the board, and other requirements and conditions stipulated in the corporate governance rules. The new rules for board formation and committee requirements will apply starting from the first upcoming board elections. However, companies must comply with other governance requirements by January 22, 2027, instead of the previous deadline of October 22, 2026.
The conditions related to board formation that will take effect from the next board elections include provisions of Article 11 of the governance rules regarding formation and related provisions, as well as Article 13 concerning the selection of independent members. Additionally, the requirements for forming committees outlined in Articles 22 and 23 will come into effect. However, rules regarding committee meetings, minutes, reports, and competencies will remain applicable as operational provisions.
All other conditions of the governance rules, including modifying the company's articles of association if necessary to comply with the provisions of the decision, remain subject to the deadline for compliance. The Authority aims to provide clarity and stability, encouraging companies to adjust their status according to the specified deadlines without delay.
The Egyptian Financial Supervisory Authority's move reflects its keenness to enhance communication with the insurance sector and provide a clear understanding of the regulatory framework. By setting these deadlines, the Authority seeks to ensure that insurance and reinsurance companies operate within a well-defined and transparent governance structure.
Companies are expected to adhere to the new governance rules to ensure their continued operation in the Egyptian market. The Authority's decisions and circulars are crucial in shaping the insurance sector's regulatory environment and promoting best practices in corporate governance.
Key points
- The Egyptian Financial Supervisory Authority has extended the deadline for insurance companies to comply with governance rules until January 22, 2027.
- The new governance rules will apply to board formation and committee requirements starting from the first upcoming board elections.
- The Authority aims to provide clarity and stability in the regulatory framework, encouraging companies to adjust their status according to the specified deadlines.
