Micro Insurance Egypt

The Project

The Micro Insurance Egypt project is a Dutch initiated project approved and supported by Dutch, Swiss and Egyptian government authorities with key objective to enhance economic empowerment and alleviate poverty by creating easy access to insurance products & services for the low income segment in Egypt, empowering women in particular as integral part of Guydyon’s Inclusive Finance Concept.

Concept

The Company leverages a Micro Insurance Service Platform (MISP) in each country of operation that is unique and first of its kind. It will operate in a nation-wide insurance infrastructure and enables a rapid expansion of micro insurance products focused on a commercially viable basis. Through this platform providers of micro insurance can offer their products directly to Base of the Pyramid (BoP) consumers (BoP refers to the 4 billion people world wide that have an annual purchasing power of less than USD 1.500).

Feasiblity Study 2010

By request of Egyptian Insurance Company, Saudi Egyptian Insurance House, Guydyon performed an exstensive feasibility study for the Egyptian market. The study conducted by Guydyon in 2010 showed great potential for developing a sustainable micro insurance market:

  • With a large market in Egypt with 90 million people and 25% living of less than USD 2 a day the Egyptian market has a huge potential;
  • By building on the existing infrastructure used for microcredit and adding urgently required microinsurance products, the pilot avoids having to create new institutional structures. By being open to all interested parties, it achieves immediate scale, which in return allows short-term financial sustainability.
  • The insurance market for the top segment is already in place, for existing insurance companies a wider range of products and clients is extremely relevant for the upcoming years;
  • The feasibility study shows a large interest on the demand side – every family is saving for pension, study of the children and illness (health care);
  • Wide spread distribution: top 10 NGO’s, Post Office network (in Egypt 3.500 post offices covering all rural areas), MFI’s;
  • The pilot is an ecologically ‘clean’ product and is therefore called environmentally sustainable.