AXA Launches Egypt's First Microinsurance Offering

AXA and Egypt Post have joined forces to launch Egypt’s first microinsurance company.

This partnership, made possible under the new Unified Insurance Law, aims to provide affordable insurance to low-income citizens, advancing the Egypt's recent financial inclusion efforts.

The signing, witnessed by Amr Talaat, Minister of Communications and Information Technology and Mohamed Farid, Chairperson of the Financial Regulatory Authority (FRA), marks a significant step in Egypt’s insurance landscape. French Ambassador to Egypt, Eric Chevallier, and Thomas Buberl, CEO of AXA Group, were also in attendance.

Bringing insurance to under-served Egyptians

Targeting more than 12 million low-income Egyptians, the new company will offer a range of microinsurance products including health, life, personal accident and livestock coverage.

Customers will have access to these products through the Egyptian Post’s extensive network of 4,850 branches as well as microfinance companies and digital platforms.

“This initiative extends insurance services to all citizens, particularly the most vulnerable,” says Amr. “It reflects Egypt’s commitment to advancing financial inclusion and ensuring citizens have the protection they need.”

The plan is for Egypt Post to provide its broad national network, ensuring that even those in remote or rural areas can easily access insurance services.

This is part of Egypt Post's recent growth, which has seen it grow from 3,200 branches to nearly 5,000 today, offering a range of non-banking financial services.

The goals of AXA, Egypt Post and the Egypt government

Thomas Buberl, CEO of AXA Group, described the partnership as a key milestone for AXA, which has been active in the microinsurance sector in more than 20 countries since 2016, many of which are in Africa.

Egypt, he says, is a critical market for the company’s ambitions to grow its customer base.

“By 2026, AXA aims to protect 20 million customers worldwide through microinsurance, and Egypt is central to that goal,” Thomas says. “Through our collaboration with Egypt Post, we will bring tailored insurance solutions to people who need them the most.”

Egypt Post’s infrastructure will be vital to the initiative’s success, allowing AXA to reach far and wide across many different demographics in Egypt.

Abdo Alwan, Acting Chairperson of the National Postal Authority, notes that the organisation’s reach and technology will help make insurance accessible to under-served populations.

“Our goal is to provide financial protection in a simple and affordable way,” he says.

How policy made this deal possible

Mohamed Farid, Chairperson of the FRA, stressed the importance of the new Unified Insurance Law in fostering market development and driving innovation.

The partnership between AXA and Post for Investment is the first tangible result of the new law, setting a precedent for future collaborations in Egypt’s insurance sector.

“This will help expand insurance coverage and improve financial inclusion across Egypt,” Mohamed says.

The power of public-private partnerships

For Egypt Post, this venture forms just one part of a continued effort to nurture more public-private partnerships.

Speaking of the partnership, Egypt Post CEO, Ahmed Ali Abdel Rahman says that Egypt Post has a trustworthy relationship with Egyptian citizens, which will afford AXA that same respect.

“This partnership allows us to combine Egypt Post’s unique distribution capabilities with AXA’s insurance expertise,” he says. “It’s a significant step in providing sustainable financial solutions that generate positive social impact.”

Omar Shalaby, CEO of AXA Egypt, echoes this sentiment, expressing pride in co-founding the country’s first microinsurance firm.

“This joint venture is a demonstration of AXA’s commitment to supporting Egypt’s economic and social development through insurance,” Omar says.

“We believe insurance plays a crucial role in the prosperity of any nation, and we are proud to be part of Egypt’s journey.”

**************

Make sure you check out the latest edition of InsurTech Digital and also sign up to our global conference series for our sister site – FinTech LIVE 2024.

**************

InsurTech Digital is a BizClik brand.