The success of microinsurance depends on three main pillars, which are the development of innovative business models based on digital technology, such as mobile payments and parametric insurance, flexible regulatory frameworks and the strengthening of partnerships among governments, the private sector and international organisations.
The Insurers Federation of Egypt (IFE) said this in its latest weekly bulletin, entitled “Microinsurance: Towards Achieving Financial Inclusion and Enhancing Economic Resilience in Africa”.
The IFE commended the experiences implemented by a number of African countries in developing microinsurance. The experiences reflect the continent’s ability to create flexible insurance solutions that meet the needs of low-income groups and rural communities. The countries concerned also call for strengthening regional cooperation, exchanging experiences and expanding partnerships to develop insurance products that are more suitable for the needs of African markets.
Microinsurance has witnessed gradual development in Africa since the mid-1990s with the entry of private insurance companies into the market. The branch became better organised towards the end of the 1990s through partnerships between insurance companies, microfinance institutions and international organisations, which have contributed to expanding access to insurance services at a low cost and higher efficiency.
Africa has promising economic opportunities, but faces a large insurance gap, especially in light of the dominance of the informal sector and the dependence of millions of families on unstable sources of income, in addition to rising climate risks that threaten livelihoods.
Egypt
On its contributions to microinsurance in Egypt, the Federation affirmed microinsurance as a priority area that it supports, as it is an effective means of promoting financial inclusion and protecting low-income groups in Egypt by providing low-cost products that include medical, agricultural and life insurance.
The bulletin pointed out that the Egyptian market has been developing microinsurance in recent years through the introduction of new products supported by digital solutions, and increased cooperation with FinTech companies, which has contributed to raising insurance penetration rates and enhancing awareness of insurance. Playing a pivotal role, the Egyptian government has provided a legislative framework for microinsurance via the new unified insurance law passed in 2024.
Egypt, as the chair of the African Insurance Organization for the 2026–2027 term, aims to increase the exchange of knowledge and expertise among insurance markets across the continent and to highlight the opportunities and potential of the African insurance industry. To support this, the IFE is producing a series of specialised publications on insurance markets in Africa, highlighting their key features and developments.