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"Paving the Road for Micro-Insurance in the MENA Region" Conference, Held on December 16-17, 2009
In light of the growing interest of the Egyptian Government, duly represented by the Ministry of Investment, in the spread and development of micro-insurance with the aim of covering all segments of the society, and given the Government's trend to expand the participation of insurance sector with the aim of providing more social protection to the low income classes through expanding the concept of micro-insurance and enhancing social development role played by the various types of micro-insurance institutions, and
Within the framework of the developments of the financial services in Egypt and given the micro-insurance role which actively provides finance to micro-enterprises with the aim of maximizing the Egyptian economic growth, and Whereas, the Egyptian economy's growth further relies on the diverse laborer-extensive production sectors serving the informal economy and gaining unfixed income, and Whereas, this large segment of society has insurance requirements that can be provided by micro-insurance,
Therefore, the EFSA, in cooperation with the International Association of Insurance Supervisors and the International Labor Organization, has organized a conference titled "Paving the Road for Micro-Insurance in the MENA Region" and held during the period of December 16-17, 2009.
Global studies and statistics point out that the value of micro-insurance installments in the Middles East and North Africa do no exceed 1% of the Gross National Product.
This is fundamentally based on the fact that insurance industry in the region does not cover the requirements of all society segments, particularly the low-income class.
Micro-insurance covers only 135 million of low income citizens at the international level, which figure is less than 3% of the low income population whose number exceeds 2 billion.
Conference Objectives:
First: Giving ample opportunity to exchange ideas and experiences and to propose solutions to the problems and challenges that may face insurers and insurance supervisors in the Middle East region in their development of insurance products to meet the requirements of the low income class. Second: Creating awareness of the importance of micro-insurance among insurance supervisors, insurers and micro-finance institutions in the Middle East and North Africa, through reviewing and benefiting from the experiences of participating States and International Organizations which managed to develop ways and means to design and distribute micro-insurance products. The conference was attended by more than 120 participants from the Middle East Countries, including Syria, Libya, Palestine, Morocco and Emirates. It was also attended by representatives of Egyptian insurance companies, delegates from Belgium and Netherlands and other persons interested in micro-insurance coming from all over the world. In the conference, thirteen lectures were given, eight lectures of which were given by international lecturers representing the International Association of Insurance Supervisors, the International Labor Organization, South Africa, Morocco, India, Switzerland, Luxemburg and the United State of America, in addition to other four lecturers from Egypt, two of them were representing the EFSA.
The conference produced various positive results, including: • A preliminary approval was given by the World Bank Representative as to providing technical support to the EFSA to prepare, develop and apply a micro-insurance strategy in Egypt • A proposal was submitted by the International Organizations to assign Egypt as the Middle East representative for all micro-insurance activities in the International Organizations; this proposal was approved by the attendees. • A preliminary approval was obtained to assign Egypt as member of the executive board of the "Access to Insurance Initiative", which is an international program designated to assist the supervisory authorities, at the level of developing and least developed countries, to raise their capability to expand and spread insurance in their markets and to help them to apply a strict control system and proper regulatory and supervisory rules conforming to the international standards.
It is worthy noting that the program represents an alliance between the International Labor Organization, the International League to Help the Poor, the World Bank, the International Association of Insurance Supervisors, and other donors. The alliance aims to reduce and limit poverty and manage risks through providing insurance coverage to the individuals at all standards of living.
The attendees further discussed the means for incorporation of a specialized micro-insurance company in Egypt to be the first in the Middle East Region. This company is intended to be supported by a financial group from Netherlands and Saudi Arabia.
Please find herein below the presentations made during the conference sessions. - Introduction to Microinsurance - Country experience & emerging lessons for microinsurance regulation & supervision - Manging performance using indicators - Micro Insurance In Egypt challenges & opportunities - Microfinance in Egypt - An overview - MicroTakaful Opportunities and need Egyptian Experince - A global Programme for sound regulatory & Supervisory frameworks |
