FRA amends rules governing insurance brokerage activities

The Financial Regulatory Authority (FRA) has issued a decision amending provisions of Decision No. 69 of 2025 governing the professional rules and standards for registering and conducting insurance and reinsurance brokerage activities.

The decision abolishes the requirement for insurance and reinsurance brokerage companies to open at least two branches within three years of commencing operations, which had been among the requirements for establishing and licensing such companies.

The amendment follows practical experience showing that insurance and reinsurance brokerage activities do not necessarily require geographical expansion through multiple branches in all cases, amid technological developments and the diversification of service delivery channels.

Accordingly, imposing geographical expansion within a specified timeframe could create financial and administrative burdens that do not necessarily correspond to each company’s needs or business model.

The decision also removes the provision that had allowed insurance consultants to assume executive management positions at insurance or reinsurance brokerage companies, effectively barring them from holding executive management positions at such firms.

The amendment is aligned with FRA Board Decision No. 25 of 2026 on the conditions, rules and procedures for registering and conducting insurance consultancy activities.

The decision requires individuals seeking registration in the insurance consultants’ register not to be registered in the FRA’s register of accredited insurance brokers. This is intended to prevent conflicts of interest and reinforce the separation of activities and independence of roles within the insurance sector.

FRA Chairperson Islam Azzam said the new decision aims to strengthen governance policies and ensure a complete separation between brokerage and consultancy activities, eliminating potential conflicts of interest.

He said the decision is in line with the regulatory framework established by the Authority for conducting these activities under the Unified Insurance Law No. 155 of 2024.

Azzam added that abolishing the requirement to open two branches within three years reflects the FRA’s commitment to maintaining continuous dialogue with market participants and responding to developments arising from practical experience.

The decision gives companies greater flexibility in managing their resources, determining their expansion strategies and delivering services according to customer needs and the nature of each company’s business, without compromising applicable regulatory controls and requirements, he said.

Azzam stressed that regulatory amendments consistently seek to strike a balance between supporting market participants, ensuring effective supervision and keeping pace with practical applications and developments in the insurance market in particular and non-banking financial activities in general.

This, he said, contributes to the growth of financial markets while safeguarding the rights of market participants.

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