FRA head urges better climate risk data to support maritime insurance and adapt to faster natural disasters.
FRA Chairman Mohamed Farid speaks at MENA Marine Insurance Forum, calls for climate risk data and sector reform.
Dr. Mohamed Farid, Chairman of Egypt’s Financial Regulatory Authority (FRA), emphasized the critical need to build and improve climate risk databases to support sound planning in the insurance sector—particularly maritime insurance. He noted that the absence of accurate data poses a major challenge to strategic planning, especially in addressing carbon emissions from fuels used in maritime transport.
Speaking at the 2025 Middle East and North Africa Marine Insurance Forum—organized by the Egyptian Insurance Federation and the International Union of Marine Insurance (IUMI)—Farid highlighted the urgency of adapting to faster climate changes. He pointed out that natural disasters which used to occur once every 70–80 years now happen every 7–8 years, creating severe challenges for regulators and insurers alike.
He called for the implementation of the "differentiated responsibility" principle in climate action, urging industrialized nations—historically responsible for pollution—to contribute more significantly to global climate adaptation efforts. This includes financing clean energy solutions and climate-resilient infrastructure in developing countries.
Farid underscored that maritime insurance remains essential for international trade growth, as it mitigates risks associated with shipping goods across borders. He noted Egypt’s historic and strategic role in global trade, referencing the issuance of the country's first maritime insurance legislation in 1888, post the opening of the Suez Canal.
He also reiterated the FRA's commitment to balancing insurance protection requirements with economic developments. This includes the introduction of Egypt’s new Unified Insurance Law, aimed at modernizing the sector’s regulatory framework and enabling local insurers to integrate with global markets more effectively.
