(Ecofin Agency) - The newly formed company aims to serve nearly 12 million low-income Egyptians, offering insurance products tailored to their needs.

Axa Egypt, a leading insurance provider, has partnered with Egypt Post, the country’s government postal service, to launch a new micro-insurance company. The announcement was made on October 3. The company aims to provide affordable insurance services to 12 million low-income Egyptians who have limited access to traditional insurance products.

“The inclusive-insurance offerings will include both retail and group products, covering areas such as hospital cash (Hospi-cash), personal accident (PA), term life, payment protection, credit life, livestock insurance, and group protection,” Axa Egypt explained in a statement. These products will be available through various channels, including Egypt Post’s extensive network, microfinance institutions, and fintech platforms.

In May 2024, Egypt approved a new unified insurance bill that aims to modernize the insurance sector and improve transparency. The law introduces new categories of mandatory insurance and requires insurers to increase their minimum capital. Although the law has not yet come into effect, Egypt's insurance market continues to grow. According to Egypt’s Financial Regulatory Authority (FRA), insurance revenue increased by 28.9% to EGP35.8 billion in the first half of 2023.

Micro-insurance is growing rapidly across Africa. According to a May 2024 study by the Microinsurance Network, more than 34 million people in 14 African countries were covered by micro-insurance programs in 2021. This shows significant progress compared to 2008, when the International Labour Organization (ILO) reported that only 14.7 million low-income individuals were covered. Back then, these individuals made up just 2.6% of people living on less than $2 a day in 32 African countries, with micro-insurance premiums totaling around $257 million.