Egypt launches 1st microinsurance company under new unified insurance law

Updated 10/7/2024 4:02:00 AM

Arab Finance: Post for Investment, Egypt Post’s investment arm, and AXA Egypt have signed a partnership agreement to launch Egypt’s first microinsurance company under the newly implemented Unified Insurance Law, as per a statement.

Chairman of the Financial Regulatory Authority (FRA) Mohamed Farid noted that insurance plays a significant role in promoting social and economic stability, especially microinsurance, which caters to vulnerable communities by protecting against various future risks.

This, in turn, increases the ability of individuals and institutions to manage risks and face uncertainties, he added.

Farid also stressed that insurance is a key player in enhancing national savings by mobilizing individual savings and offering tailored insurance products that bridge the gap between savings and investment, which is necessary for achieving targeted economic growth.

He highlighted that there are currently 15 companies offering microinsurance services, with 6.3 million active policies by the end of the last fiscal year.

Minister of Communications and Information Technology Amr Talaat highlighted the importance of expanding digital services through Egypt Post to promote financial inclusion.

Talaat pointed out that microinsurance services will cater to the needs of low-income individuals, who often need insurance services that align with their financial capabilities.

He also mentioned that this new service adds to the growing financial offerings available through Egypt Post, which has already expanded into micro-lending and consumer loans.

Egypt Post has also significantly increased its presence, from 3,200 branches a few years ago to 4,850 branches nationwide, offering both postal services and various financial services.

The new partnership between Post for Investment and AXA Egypt will involve significant technological integration, including linking with the FRA to verify customer data electronically.

The companies will also be expected to issue official policies digitally and market their services through various channels, including telecom platforms and e-commerce sites.