(Ecofin Agency) – The newly created entity targets nearly 12 million low-income Egyptians, with specific insurance products adapted to their condition.
Egyptian insurer, Axa Egypt, and the country’s government postal service agency, (Egypt Post) have jointly launched a micro-insurance company in the country. The announcement was made on Thursday, October 3, 2024. The entity targets 12 million low-income Egyptians with limited access to traditional insurance services offered on the market.
“This microinsurance offerings will include both retail and group products, covering areas such as hospital health insurance, individual accident insurance, term life insurance, payment protection, credit life insurance, livestock insurance and group protection. These products will be accessible through multiple channels, including Egypt Post’s extensive network, microfinance institutions and fintech platforms », Specifies Axa Egypt.
With the approval in May 2024 of a new unified insurance bill, the Egyptian government is working to modernize the sector and increase its transparency. This law introduces new categories of compulsory insurance, and recommends an increase in the minimum capital of the country’s insurers. While awaiting its entry into force, the Egyptian insurance market continues its growth dynamic. It has recorded considerable progress in terms of penetration and written premiums. Revenue in the Egyptian insurance market grew 28.9% to 35.8 billion Egyptian pounds in the first half of 2023, according to data released by the Financial Regulatory Authority (FRA) of Egypt.
Microinsurance growing in Africa
Overall, microinsurance has great potential for expansion and growth in Africa. According to a study on the state of microinsurance published in May 2024 by the platform Microinsurance Networkmore than 34 million people living in 14 African countries were covered by microinsurance programs in 2021. This data is a clear increase compared to that collected 13 years earlier, i.e. at the end of 2008, by the Fund for innovation in microinsurance from the International Labor Organization (ILO). The organization revealed in a study on the state of microinsurance in Africa that 14.7 million low-income people were covered at this time. These insured persons represented approximately 2.6% of the population living on less than $2 per day in 32 countries. Total microinsurance premiums paid in 2008 were approximately $257 million.
Chamberlain Moko
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