Egypt’s Financial Regulatory Authority (FRA) has granted temporary operating licences to six healthcare third-party administrator (TPA) companies, as the regulator begins enforcing the country’s new Unified Insurance Law, the authority’s chairperson said.
The announcement came during an extended meeting held by FRA Chairperson Islam Azzam with TPA representatives, authority leaders, and relevant departments. The authority is currently examining further applications to ensure companies meet the legal requirements.
Under the FRA Board of Directors Decision No. 229 of 2025, companies have a deadline of 10 July 2026 to adjust their status in accordance with the authority’s rules and standards, though this period may be extended by board decree.
The Unified Insurance Law No. 155 of 2024 regulates TPA activities for the first time in Egypt, integrating them into the non-banking financial services system. The legislation mandates that TPAs be recorded in a special registry and restricts their role strictly to this purpose. It also permits these companies to manage self-funded healthcare programmes for institutions, authorities, or employers, provided the client pays the service costs in full.
“Regulating and governing healthcare activities will reflect positively on the quality of services provided to millions of citizens,” Azzam said.
Azzam stated that the authority is prioritising the development of medical insurance and healthcare under the new law. He managed an open discussion to hear market opinions and practical developments regarding the implementation of theregulatory decisions.
“We are approving diverse insurance products to stimulate the market and meet customer needs, and we aim to attract investments and expand competition,” Azzam said, adding that the FRA will continue its series of meetings with active parties across the insurance and non-banking financial sectors.
Azzam stressed the importance of stability within the sector, the protection of client rights, and adherence to the law and executive decisions for licensing. He outlined strict operational obligations for TPAs, which act as intermediaries between insurance companies and clients. These include maintaining impartiality and accuracy in claims settlement, avoiding discrimination among service providers, establishing internal control systems, and defining and evaluating acceptable risk levels without exceeding them.
Furthermore, TPAs must verify insurance coverage before referring claims to insurers and protect client data privacy, onlydisclosing information with explicit consent or following a judicial or regulatory request.
The new legislative framework imposes specific governance standards on TPAs. Companies must hold a general assembly at least once annually within the three months following the end of their financial year. They are required to prepare financial statements and accompanying disclosures under Egyptian Accounting Standards, submitting them to the FRA one month prior to the general assembly, alongside an auditor’s report from an auditor listed in Section 1 or Section 2 (A) of the FRA’s registers.
The law and its executive decisions also outline several prohibitions for TPAs. Companies are banned from selling, marketing, or brokering insurance policies, as well as practising direct insurance activities. They are prohibited from calculating their fees as a percentage of claim values, and they cannot retain any surplus funds from claim settlements, which must be returned to the insurance company.
To reinforce integrity, transparency, and accountability, TPAs must also implement a conflict of interest policy applicable to board members and employees.
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