Activities in Egypt

Background and Objective

Insurance for low income people is a critical component of sustainable development. Without it, low income families and even communities diminish resiliency in the face of financial crises. This diminished resiliency leads to lower investment in micro and small businesses, lower local purchasing capacity, and overall increased vulnerability. Well-designed insurance products can, and do, facilitate the financial protection of low income people fostering the potential for sustainable development on individual, family, and community levels.

Therefore, JICA is supporting the development of Microinsurance in Egypt with the aim to promote financial inclusion and poverty reduction to the financially challenged segment and protecting them against risks through the establishment of a Microinsurance market that will introduce microinsurance products that are tailored to the needs and income of the low-income individuals, families and businesses.

This support started from 2015 with our counterpart the Financial Regulatory Authority (FRA); from the developing of a National Strategy for Microinsurance, to study tours, to regulatory support, and, finally, to capacity building of regulators, training institutes, and the market.

Project Summary

Technical Cooperation

First Phase (March 2015 – March 2017)
"Development of a Microinsurance Framework in Egypt"

• A study visit of regulators was paid in 2015 to Philippines.
• A National Strategy for Microinsurance in Egypt was developed.
• Microinsurance Platform gathering all the market stakeholders was established at the Insurance Federation
• FRA issued the Microinsurance Directive in November 2016 which is considered to be setting the building block for the establishment of microinsurance in Egypt

Second Phase (April 2017 – March 2018)
"Enhancing Capacity of Training Institutes in Egypt for Microinsurance Development"

With the expertise of the Microinsurance Center at Milliman and in assistance of the Financial Services Institute (FSI) and Insurance Institute in Egypt (IIE) JICA:

• Conducted a basic needs assessment of training recipients
• With FSI: Development curricula and conducted Training of Trainers (ToT) for a program for high-level staff and intermediaries.
• With IIE: Developed curriculum for a ‘Microinsurance Diploma', as the first of its kind in the World, for practical capacity development of the market and offer microinsurance products; and a ToT for the program.
• Dissemination and exchange of knowledge through:
  
  • An International seminar of successful cases from other countries, in collaboration with GIZ Egypt and SANAD.

  • A study visit of members of the market and trainers to the Philippines.
• Conducting a Preliminary Demand Survey for Product Development of Microinsurance in Egypt for the use of the market and to fill the gap of the lack of data.

Results of the survey published on the following link: