The microinsurance segment in Egypt generated premiums totalling EGP377m ($7.7m) and paid out compensation of EGP193m in 2023, according to data from the Financial Regulatory Authority (FRA).
Insurance expert Ahmed Ibrahim told Al Mal News that microinsurance offers protection against risk in life, health, property, accidents and disasters, at affordable premiums.
Awareness
Citing some challenges facing the microinsurance segment, Mr Ibrahim said that the lack of awareness and knowledge of the importance of microinsurance is the biggest obstacle to its spread among target groups. There is also difficulty in reaching remote markets and rural areas, which limits access to insurance services to residents in such parts.
Access to microinsurance
Mr Ibrahim stressed the use of mobile applications in providing easy access to insurance services and speeding up procedures.
He also suggested that the insurance sector form partnerships with community or non-governmental organisations to increase access to and awareness of microinsurance services.
He said that joint projects between the public and private sectors can provide the resources and expertise needed to expand the scope of microinsurance programmes, and that integration between microfinance institutions and insurance companies will enhance the access to insurance solutions by target groups.