Financial Regulatory Authority amends insurance brokerage rules

The Financial Regulatory Authority (FRA) has issued new amendments to the professional rules governing insurance and reinsurance brokerage activities. These changes aim to enhance governance, improve efficiency, and prevent conflicts of interest within the sector.

One major update is the removal of the requirement for insurance and reinsurance brokerage companies to open at least two branches within three years of starting operations. The FRA noted that technological advancements and diverse service channels mean geographic expansion via physical branches is no longer a necessity for all business models, and mandatory expansion could impose unnecessary financial and administrative burdens.

Additionally, the decision prohibits insurance consultancy experts from holding executive management positions within brokerage firms. This measure is designed to ensure a strict separation between brokerage activities and consultancy roles, aligning with the Unified Insurance Law No. 155 of 2024 to eliminate potential conflicts of interest.