The Financial Regulatory Authority (FRA) has approved the establishment of Sawa Microinsurance Company, granting Egypt's first microinsurance licence.
The new company is a joint venture between AXA Life Insurance Egypt and Post Investment Company. Its issued capital is EGP100m ($2.1m), exceeding the minimum limit set by the FRA for standalone microinsurance companies, which is EGP40m.
AXA Life Insurance Egypt–one of the companies affiliated with Paris-headquartered AXA Group–signed a strategic partnership agreement with Post Investment Company–the investment arm of Egyptian Post–at the beginning of October 2024, to establish the first microinsurance company under the umbrella of Egypt’s new Unified Insurance Law. The Authority was contacted about approval for the formation of a microinsurance company, reported Amwal Alghad.
The Unified Insurance Law, passed in 2024, includes a legislative chapter that regulates the establishment of standalone microinsurance companies. The Law aims to expand the base of insurance beneficiaries, particularly among the most needy groups, owners of micro-enterprises, and microfinance clients.
AXA Life Insurance has a stake of approximately 49% in Sawa Microinsurance Company, while Post Investment Company has a stake of 51%.
The new company aims to reach 12m customers through 4,000 postal branches in order to provide life insurance services to these customers.
Although microinsurance policies have been issued in Egypt for several years, this is the first time a legislative and regulatory framework has been established for this branch of business, which has grown increasingly important in the country.