Egypt’s FRA grants temporary licenses to six healthcare TPAs under a new insurance law

EGYPT—Egypt’s Financial Regulatory Authority (FRA) has issued temporary operating licences to six healthcare third-party administrator (TPA) companies as it begins implementing the country’s Unified Insurance Law.

The move marks the first formal regulatory framework for TPAs in Egypt and is expected to reshape how healthcare claims and medical insurance services are managed.

FRA Chairperson Islam Azzam announced the decision during an extended meeting with TPA representatives, senior authority officials, and technical departments.

He said the regulator is also reviewing additional licence applications to ensure more companies meet the new legal and operational requirements.

Under FRA Board Decision No. 229 of 2025, companies have until July 10, 2026, to regularise their status in line with the authority’s standards.

However, the FRA board may extend the deadline if necessary.

New rules for healthcare administrators

The Unified Insurance Law No. 155 of 2024 formally recognises TPAs for the first time and places them within Egypt’s non-banking financial services sector.

Previously, these firms operated without a dedicated legal framework.

Under the new law, TPAs must register in a special official registry and can only operate within the activities approved under that registration.

In addition, the law allows them to manage self-funded healthcare programmes for institutions, government entities, and employers, provided the client fully covers the cost of services.

Azzam said stronger regulation would improve healthcare quality for millions of Egyptians by introducing clearer rules, better oversight, and stronger accountability across the sector.

Focus on insurance market growth

During the meeting, Azzam said the FRA is prioritising the expansion of medical insurance and healthcare services under the new law.

He also held discussions with industry participants to gather feedback on market developments and the practical impact of recently issued regulations.

He added that the authority continues to approve new insurance products designed to meet changing customer needs, stimulate competition, and attract fresh investment into the market.

The FRA plans to continue consultations with companies operating across insurance and other non-banking financial services.

Operational standards and governance

Azzam stressed that TPAs must protect customer rights, maintain market stability, and fully comply with licensing conditions.

Because TPAs act as intermediaries between insurers and clients, they must process claims fairly, avoid discrimination among healthcare providers, and maintain strong internal control systems.

They must also assess operational risks carefully, confirm insurance coverage before referring claims to insurers, and safeguard confidential customer data.

Companies may only disclose private information with customer consent or through a judicial or regulatory order.

The law also requires each TPA to hold an annual general assembly within three months after the close of its financial year.

Companies must prepare financial statements under Egyptian Accounting Standards and submit them to the FRA one month before the meeting, together with an auditor’s report from an FRA-approved auditor.

Restricted activities

TPAs may not sell, market, or broker insurance policies, nor can they conduct direct insurance business.

They are also barred from charging fees based on claim values or retaining unused claim settlement funds, which must be returned to the insurer.

To strengthen transparency, all licensed TPAs must adopt formal conflict-of-interest policies covering both board members and employees.