• Sherif Samy: Micro-insurance is an important pillar for achieving financial inclusion in Egypt
• Microinsurance protects ordinary citizen and provides them with a saving tool
•EFSA: Entities operating in microfinance have an important role in spreading insurance
Sherif Samy- EFSA’s Chairman asserted that the Authority keens on the success of the micro-insurance system and stresses on the right of the ordinary citizens and low-income individuals to obtain insurance coverage that is characterized by simplicity in understanding its policies and easy access.
The workshop on “Micro Insurance – International Experiences and Applications of Egypt” was organized by the Authority over two days. A large number of insurance companies, insurance brokers and members of the Egyptian Microfinance Federation have participated in the event. By the end of the workshop, EFSA’s Chairman stressed on the importance of benefiting from other experiences to maintain a strong start in micro-insurance.
He noted that the workshop was supported by Japan International Cooperation Agency (JICA), German agency for international development cooperation (GIZ) and Sanad Foundation. He added that EFSA hosted directors of insurance companies from Morocco, Jordan and Ghana to review successful experiences in launching and marketing of micro insurance products. Also, representatives of the Egyptian insurance companies who participated in the workshop were trained to study market needs, identify distribution channels and provide appropriate insurance policies.
Sherif Samy explained that for the first time in Egypt, EFSA regulated micro-insurance activity last November and it set the controls that allow the possibility of issuing and distributing electronic policies, which is an important step to access insurance services for new segments of society and it is considered as an addition to Egypt’s efforts in the field of financial inclusion.
EFSA’s Chairman pointed out that the Authority defined micro-insurance as any insurance service which targeted low income individuals in the areas of property insurance and life insurance to protect them from the risks they may face and they shall pay in return installments commensurate with the nature of the insured risk, that is in the branches stipulated in the decision, adding that the value of insurance policy shall not exceed one hundred thousand Egyptian pounds.
He added that micro insurance branches include all types of life insurance, personal accidents and long-term medical insurance. Also, it includes property insurance and liability insurance in all branches except petrol, cars, aircraft and ships (excluding fishing boats) and the dangers of land, sea and air transport.
Sherif Samy revealed that one of the most important elements that contribute to the success of micro insurance system is that the content of the insurance policy shall be simple and clear. It is also necessary to have wide network of insurance policies’ distribution, collection of premiums and payment of compensation. He added that it shall be close to the clients who are ordinary and low-income individuals. In this respect, the Authority has approved the possibility of electronic issuance of these policies by the insurance companies through the International Information Network, allowing printing, distribution and collection of premiums through insurance brokers, insurance companies, associations and civil institutions licensed by EFSA to practice microfinance activity in addition to Egypt post and banks after obtaining the approval of the Central Bank of Egypt.