Private insurance funds are a tool for saving and providing protection after reaching retirement age, as an insurance system registered with the Financial Supervision Authority, separate from the entity that established it, and are formed for the purposes of granting benefits to a group of employees of the established entity, in the form of insurance, additional pensions, social benefits, or health care.
A private insurance fund is any system in any association, union, body, or group of individuals linked to one profession, one business, or any other social relationship that consists of something other than capital, for the purpose of providing its members or beneficiaries with compensation, financial benefits, periodic salaries, or specific pensions. The Private Insurance Funds Law No. 54 of 1975 and its executive regulations regulate the activity of private insurance funds in Egypt, and within the framework of developing the rules regulating private insurance funds, the executive regulations of the law were amended in 2015.
Private insurance funds are of great importance for all workers and the entities in which these funds are established, as well as the state, as they provide participating workers with reassurance and financial stability upon reaching the age of retirement, death, or permanent total disability, while working to increase the production of the entities in which they are established, while preserving expertise and attracting more employees. Highly efficient workers, and for the state, it is considered a savings pot and a source of financing through investing the funds’ money.