Egypt: Insurance for casual workers may boost sector's growth by 4-5%
Source: Middle East Insurance Review | Apr 2018
The sale of the newly introduced Aman (safety) certificates to casual workers could contribute to the growth of Egypt’s insurance sector by between 4% and 5%, said Dr Adel Mounir, Secretary General of the Federation of Afro-Asian Insurers and Reinsurers (FAIR).
Banks in Egypt could sell about 12 million Aman certificates within the next 18 months worth up to EGP600 million (US$34 million), according to local media reports citing Dr Mounir.
The Aman certificate, available recently, is a local savings certificate with a life insurance policy that is sold to casual workers aged 18-59. The certificate, which has a value of EGP500 and available in multiples thereof up to EGP2,500, was proposed by President Abdel Fattah Al Sisi. The policy includes coverage for natural and accidental death and pays one-time benefits of EGP10,000-250,000 or monthly pensions of EGP120-1,000 over five or 10 years.
Currently, the cover is provided by state-owned Misr Life Insurance with the Aman certificate sold through four government-owned banks – National Bank of Egypt, Banque Misr, Banque du Caire and the Agriculture Bank.
Private-sector life insurers are studying with Insurance Federation of Egypt how they can participate in the scheme and sell such certificates.
Dr Mounir believes that companies and employers would raise the money required to buy the certificates for the casual workers, in addition to the workers themselves purchasing the certificate.
The involvement of private-sector insurers would be good for all parties because it will lead to a better distribution of risks, he said. M
EGP1 = US$0.06