Within the framework of supporting the Egyptian government’s plans to achieve financial inclusion for different segments and provide different insurance models that suit all society’s segments, AXA Egypt, one of AXA Group’s subsidiaries and a worldwide insurer, asset management, and innovative multiline insurance services, signed a cooperation agreement with Egypt Post and Post for Investment (PFI), the insurance arm for Egypt Post, to establish the first Egyptian micro-insurance firm.

The agreement was signed in the presence of Mr. Ayman Kandeel, Managing Director of AXA Life Insurance Egypt and Chairman of AXA General Insurance, Khaled Emam, Vice Chairman for Financial Inclusion at Egypt Post, and Ahmed Abdallah, Chief Executive Officer at Post for Investment.

From his side, Ayman Kandeel, Managing Director of AXA Life Insurance Egypt and Chairman of AXA General Insurance expressed his content with signing the agreement with a large national entity such as National Postal Authority by stating: "Today, AXA is taking an important step towards further accelerating its commitment to support the insurance sector in Egypt and this agreement reflects the government's trust in AXA's insurance capabilities and improving its overall performance."

Kandeel further commented: “Through this partnership, we strive to strengthen the company’s directives, develop its operations, and deliver the best-in-class and latest insurance solutions in Egypt, while also adhering to our growth strategy of expanding our activities and services to reach all Egyptians.”

In this context, Hadil Abdelkader, Head of Emerging Customers & Governmental Affairs at AXA Egypt, highlighted the importance of micro-insurance in penetrating different markets and being an essential tool for achieving sustainable development, saying “Our goal is to reach one million customers till end of 2022 and AXA Egypt is working in line with its expansion plan to increase penetration rate of customers to the micro-insurance segment and serve Egyptians customers through developing innovative solutions, be it in terms of partnerships, products and services, distribution channels, in order to better address the needs of this client segment.”

Respectively, Sharif Farouk, Chairperson of Egypt Post said that this partnership complements AXA’s strategy, which contributes in offering a range of value-added insurance services to low-income segments, who are not heavily targeted by the formal financial sector. Moreover, it aligns with the Egyptian government’s goals of supporting financial inclusion, developing the expanding SME segment, and further digitizing financial services.

Accordingly, Farouk further expressed that a feasibility study is co-designed and co-run for the establishment of a joint venture, dedicated to tailoring micro-insurance products and services for mass consumer segments that lack access to financial services in general, and insurance solutions in particular, including - but not limited to - micro entrepreneurs, SMEs, seasonal workers, self-employed, blue-collar workers, small-scale farmers, and others.

Khaled Emam, Vice Chairman for Financial Inclusion at Egypt Post said that this agreement comes in line with Egypt Post’s strategy to develop new services that meet the needs of all society’s segments, noting that the micro-insurance firm will be licensed as soon as the new insurance law is issued, which is expected to be soon, which will enable the joint venture to offer exceptional insurance solutions across the Life, Property, and Health Insurance branches, and provide integrated and diversified insurance solutions that cover a variety of risks and reduce the likelihood of those insured to experience financial constraints or fall into poverty.

Moreover, Ahmed Abdallah, Chairperson of Post for Investment (PFI), revealed that this will be the first of its kind firm in the Egyptian market. It will contribute significantly to offer an added value in the insurance sector by developing insurance solutions for groups that are not covered by the official financial sector and execute the firm’s vision in achieving financial inclusion.

It is worth noting that AXA Group, a French global leader in insurance, asset management, and the provision of various insurance services, was founded in 1816. AXA provides services to its 95 million customers in 50 countries. The company began its operations in Egypt seven years ago, offering all insurance branches and services to assist its clients in their personal growth. Furthermore, Post for Investment (PFI) is an Egyptian joint stock firm established under Law No. 159 of 1981 and is considered the investment arm of Egypt Post, which seeks to enhance its profitability by leading strategic development projects and digital transformation by targeting appropriate investments while maintaining transparency and commitment to governance and internal control systems.