Launch of Savings-based Micro insurance Product in Egypt Target Country: Egypt

1. Project Factsheet Launch of Savings-based Micro insurance Product in Egypt Target Country: Egypt The main objective of the project is to help reduce the impact of risk on the micro entrepreneur and his\her family, and help him\her develop more secure saving schemes than the home savings. In end 2009, PlaNet Finance carried an “Evaluation of the needs for microinsurance services in Egypt”. Based on the conclusions and 2 large first tier MFIs (including ABA and DBACD), PlaNet Finance developed an insurance-savings scheme prototype to address the challenges identified in the evaluation. CIL an insurance company was selected to provide the insurance policies through the MFIs, to the under privileged entrepreneurs interested in the product. The idea is to provide a saving scheme for the MFIs’ clients whereby they can save a small amount of money (less than three Euros) on monthly basis through an insurance policy. In so doing, the client will be able to receive the money saved in addition to the yield over policy duration, and s/he can use this money either to pay for education cost, celebration cost of wedding of children or as a retirement onetime payment. Thus, the product can be marketed in several forms. In addition to the return on saving, the client is insured against death and disability with more than 100 percent of the saved amount at the time of the event occurrence. Different scenarios have been developed with a seven percent and nine percent yearly yield. In addition, the client has an immediate access to a percentage of his/her saving. Such a product would enable the insured client to pass progressively from a short term saving scheme available in case of external risk, to a medium term saving scheme for family events as weddings, funerals or studies etc., to a long term saving able to cover retirement planning. The product is currently in the pilot phase and to be fine-tuned accordingly. innovations in ‘pro poor’ financial services and/or service delivery mechanisms: Few pilots in Egypt were undertaken by the MFIs to offer micro insurance in cooperation with insurance companies, yet such pilots have been limited to life and disability insurance of microcredit clients only. Therefore, the life cycle saving insurance product is not linked to the microcredit given the fact that the longest term of a loan doesn’t exceed 24 months, while the lifetime of this insurance product can be up to ten years. Therefore, for the first time a saving/insurance scheme is provided to microcredit clients irrespective of whether they remain credit clients. Achievements to Date: TRAINING OF PARTNER MFIs: PlaNet Finance conducted the following trainings for Partner MFIs staff: • Training of Trainers and operational staff on savings, insurance, risk management and on the new product: 40 MFI trainers trained in financial education modules linked to insurance and, and loan officers trained on the new product, • The administrative staff, cashiers, MIS etc. are currently receiving an on the job training to integrate the new product in their processes in the branches where the insurance product will be pilot tested.

2. TRAINING TO MICRO entrepreneurs: • Financial education training is targeted to the poor clients, as their aim is to transmit skills and knowledge that will enable them to better manage their money. • As micro insurance will be a new concept for the MFI clients, and is linked to basic saving, budgeting and insurance skills, we have to ensure that the target population understands these initial skills. The objective is to launch of an awareness campaign for clients in selected branches, including financial education for clients. So far approximately 3,000 clients, have attended training sessions on savings, budgeting, and insurance. • PlaNet Finance already trained MFIs trainers to train beneficiaries on financial education skills, utilizing aTrainers’ Guides developed by Microfinance Opportunities with permission. The modules are then adapted to suit the nature of the local audience and the profile of the final beneficiary. PlaNet Finance – 44 rue de Prony – 75 017 Paris – France Tel. 33 (0)1 49 21 26 26 – Fax. 33 (0)1 49 21 26 27 www.planetfinancegroup.org