Insurance experts welcomed the idea of establishing a micro-insurance company, noting that this will benefit insurance sector and economic status as a whole, as it will secure financing for SMEs.
Abdel Raouf Kotb, head of Insurance Federation of Egypt (IFE), said that Egyptian Financial Supervisory Authority shall first approve certain legislations for micro insurance and financing.
Insurance Federation of Egypt will implement a marketing plan for micro-insurance services, without waiting till there will be a licensed company. Parliament is the one who will legislate the needed micro-insurance Act, but it has currently many other priorities, therefore it is preferable to promote this kind of insurance through specialized administrations at insurance companies.
Ali Bashendy, head of technical unit at Arab Misr Insurance Group and vice president of the general committee of accident insurance at IFE, said that Egypt has limited experience in micro insurance, therefore there shall be an experienced specialized micro-insurance company.
Essam El-Korashy, head of SMEs development Group at Social Fund for Development, assured that promoting micro-insurance will post a positive impact on micro-financing for SMEs, contributing to increasing loans to SMEs.
Amwal Al Ghad was informed that IFE will market the idea of establishing micro-insurance company in the upcoming period.
