The Egyptian Insurance Federation plans to reach micro-insurance services to a larger segment of customers in various regions by taking advantage of the wide spread of the Postal Authority’s offices, which number about 4 thousand post offices spread throughout the Republic.
The union said, in a statement on its website, that the cooperation protocol signed with the National Post Authority last year aims to diversify insurance distribution channels for small and micro enterprises, whether new or existing, insurance programs for individuals and families, spread insurance awareness and community development, and benefit from financial capabilities. and the human resources owned by the Egyptian Insurance Federation and its member companies, and investing in the great potentials owned by the Egyptian Post represented in the infrastructure and the wide geographical spread of post offices, in addition to encouraging the culture of insurance and achieving financial inclusion.
According to the federation, the protocol comes within the framework of supporting the state’s plans to achieve financial inclusion for the various segments of society, and to provide different insurance models for all sectors of economic activities in Egypt to ensure that micro-insurance services reach all citizens with ease.
According to the union, the insurance sector plays a pivotal role in implementing the financial inclusion strategy, by providing insurance services that contribute to attracting the poorest classes, expanding the issuance of micro-insurance policies, in addition to motivating companies to expand geographically in remote areas crowded with small and medium enterprises.
Insurance, especially “micro” ones, is one of the pillars of achieving financial inclusion, but it faces several challenges, most notably the low insurance awareness and the difficulty of reaching the target groups through regional distribution channels. In a related context, the Union pointed out that the Misr Life Insurance Company renewed the signing with the National Postal Authority of Egypt, the insurance partnership agreement.
Activating this partnership allows providing insurance products; To facilitate individuals in the governorates and regions to access insurance services, and obtain their insurance needs and requirements in one place, through flexible and effective programs and solutions.
It is scheduled to provide four of the company’s most important products, including the Egypt – investment document, the Egypt – protection and investment document, the Egypt – tripartite document, and the Egypt – pension document.
During its publication entitled “Post and Insurance Organizations”, the Union reviewed models of cooperation with the post globally, which include 3 models: agency, full partnership and the integrated model, explaining that these three business models include the participation of the Postal Authority in the insurance process to varying degrees.
According to the union, the higher the degree of participation of the Postal Authority, the higher the percentage of potential revenues. The presence of more responsibility in the insurance process gives the Postal Authority the opportunity to negotiate and demand a larger share of the revenues in its partnership with insurance companies.
In the latter type of business model, the Postal Authority provides its own insurance products, and therefore the Postal Authority retains all revenue.
The union also reviewed a number of scientific experiences in cooperation between postal authorities and insurance companies such as the United Kingdom, France, India, Kazakhstan, Kenya and Zambia.
According to the experiences of those countries, insurance coverage poses a strong challenge to the world postal authorities. While 91% of the global postal authorities provide financial services, the percentage of the organizations that provide insurance products and services is 38% globally, 39% in developed countries and 34% in other countries. developing.
Despite the presence of high penetration rates in many countries, Japanese Post was able to integrate 38 million customers into postal insurance services, compared to 30 million in India.
The article “Al-Masry Insurance” plans to reach micro-insurance services for the customers of 4,000 post offices, which was written in Al Borsa newspaper.