Egypt FRA Establishes First-Ever MGA Registry with Three-Year Registration

Introduces First-Ever Regulatory Framework for Managing General Agents (MGAs) to Strengthen Reinsurance Sector – Wednesday 22 April 2026

Home Media Center, Press Releases Introduces First-Ever Regulatory Framework for Managing General Agents (MGAs) to Strengthen Reinsurance Sector – Wednesday 22 April 2026

Dr. Islam Azzam:

• New framework defines roles and responsibilities to match international standards.
• MGAs and insurers have six months to ensure full compliance. FRA Board of Directors chaired by Dr. Islam Azzam, issued Decree No. 55 of 2026 to regulate the registration of Managing General Agents (MGAs). This initiative aims to develop reinsurance market and enhance efficiency following the enactment of the Unified Insurance Law No. 155 of 2024.

Dr. Islam Azzam noted that this decree establishes a crucial framework for regulating insurer-MGA relations. The goal is to define responsibilities more clearly, bolster reinsurance market performance, and ensure the sector remains responsive to international practical developments.

The decree defines the MGA’s scope of work and prohibits insurers from outsourcing reinsurance operations to unregistered entities. It mandates MGA participation in efficient claims management and dispute resolution, setting strict technical expertise and financial solvency as core registration criteria.

An MGA is defined as a legal entity authorized by FRA-registered reinsurers to provide services, including underwriting and claims settlement. These powers are granted via a “Binding Authority Agreement,” which precisely outlines the agent’s mandate to contract and act on the reinsurer’s behalf.

For the first time, a dedicated MGA registry has been established. It tracks essential data, regulatory jurisdictions, and contractual relationships with insurers and reinsurers to bolster transparency and simplify regulatory supervision.

To ensure all transactions involve supervised and financially sound entities, insurance firms operating in Egypt are strictly prohibited from dealing with any MGA not officially registered with the FRA.

The decree mandates stringent registration criteria, requiring oversight by a competent regulatory body equivalent to FRA. Applicants must demonstrate extensive reinsurance expertise and maintain a qualified workforce. Furthermore, they must provide a proven track record with a reinsurer rated at least (A), based in a jurisdiction with a minimum (BBB) credit rating. Additionally, all major stakeholders must maintain a clean record relative to international sanctions and domestic terrorist watchlists.

Registration requires a valid Binding Authority Agreement with an FRA-registered reinsurer (minimum one-year term) and a Professional Indemnity policy from a licensed Egyptian insurer with at least EGP 40 million in coverage. Applicants must submit comprehensive technical and financial documentation, with FRA reserving the right to verify competence via field audits or technical interviews.

The registration period for Managing General Agents (MGAs) is three years, renewable contingent upon continued compliance with all regulatory standards. To ensure business continuity, renewal applications must be filed within a prescribed timeframe prior to the registration’s expiry.

To secure an official listing, applicants must submit a comprehensive documentation package, including full disclosure of ownership structure, Binding Authority Agreement, and the reinsurer’s Letter of Authorization. Additionally, the filing must include audited financial statements in both Arabic and English, alongside a strategic business plan detailing target volumes for the Egyptian market.

FRA Chairman Dr. Islam Azzam emphasized that the decree establishes a framework for disciplined market operations and clear accountability. MGAs are strictly required to adhere to all governing laws, Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regulations, and data confidentiality protocols. Additionally, periodic disclosures regarding business volumes and executed operations must be submitted to FRA.

Moreover, domestic insurance companies engaging with MGAs are responsible for verifying the agent’s scope of authority as defined in their respective binding agreements. Insurers must also proactively notify FRA of any new contracts, material amendments, or regulatory violations committed by the agent.

FRA Board is empowered to revoke an agent’s registration for failing to meet eligibility conditions, breaching statutory obligations, or ceasing operations for two consecutive years. Notably, the agent’s liabilities toward Egyptian insurance entities remain enforceable even post-deregistration.

The decree provides a six-month grace period for MGAs and insurance firms to reconcile their status with the new regulations. Furthermore, insurance companies are required to submit comprehensive data on all existing agents to FRA within one month of the decree’s effective date.

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Tags: FRA Chairman, Financial Regulatory Authority (FRA), Insurance Sector, Unified Insurance Law, Dr. Unified Insurance Law Last modified: April 23, 2026 Comments are closed.