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  • Monday, 15 July 2024

The Ministers of Planning and International Cooperation, ICT, & the Head of the Financial Regulatory Authority Witness Signing Ceremony of Strategic Partnerships between the Insurance and ICT sectors and the National Telecommunications Regulatory Authority to Accelerate Digital Transformation and Financial Inclusion

H.E. Dr. Rania A. Al-Mashat, Minister of Planning and Economic Development and International Cooperation:

● “We are working on enhancing structural reforms and focusing on several key sectors that drive growth and achieve comprehensive economic development.”

● “The partnership between the insurance and telecommunications sectors enhances Egypt's role as a regional hub for technology and innovation and facilitates citizens' access to financial services.”

H.E. Dr. Rania A. Al-Mashat, Minister of Planning and Economic Development and International Cooperation, Dr. Amr Talaat, Minister of Communications and Information Technology, and Dr. Mohammed Farid, Chairman of the Financial Regulatory Authority (FRA), witnessed the launch ceremony of the first strategic partnership between the insurance and telecommunications sectors, represented by Misr Life Insurance Company and Etisalat Misr, at the headquarters of the authority. This aims to market and distribute insurance products through Etisalat Misr branches e&, as part of efforts to expand the beneficiary base of insurance coverage to enhance insurance inclusion levels, and the first cooperation between the authority and the National Telecommunications Regulatory Authority as part of efforts to support digital transformation and financial inclusion, through signing an agreement on customer data verification service in Egypt.

The partnership between Egypt Life Insurance and e& (formerly Telecom Egypt) marks the first implementation of the Financial Regulatory Authority's decisions allowing insurance companies to market their approved insurance products through establishing a branch within the branches or offices of telecommunications companies. This comes after insurance companies were permitted to electronically market microinsurance documents through licensed telecommunications companies and e-commerce platforms authorized by relevant authorities.

The FRA aims to enhance integration among all institutions and support the role of the non-banking financial sector in the national economy. This targets increasing the number of beneficiaries of non-banking financial services to improve financial inclusion, particularly enhancing insurance inclusion in Egyptian society.

Present at the event were Engineer Mohamed Shamroukh, Acting CEO of the National Telecommunications Regulatory Authority; Dr. Ahmed Abdel Aziz, Managing Director at Misr Life Insurance; Engineer Hazem Metwally, CEO of e&; Mr. Mohamed Mehran, CEO of Misr Holding Insurance; Mr. Mohamed Abdel Gawad, Chairman of the Board of Misr Life Insurance; as well as Deputy Chairmen of the Authority Dr. Islam Azzam and Mr. Mohamed El Sayed, Dr. Mohamed Abdel Aziz, Assistant to the Chairman of the Authority, and Mohamed Ayad, Media Center Director at the Authority, along with various leaders from different entities present at the signing.

The partnership between Misr Life Insurance and e& enables the marketing of a number of insurance products belonging to Egypt Life Insurance through 52 branches of E& as an initial phase distributed across governorates nationwide, with plans to expand collaboration to broader geographic areas.

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, emphasized the importance of this partnership, the first of its kind between the telecommunications and insurance sectors in Egypt. H.E. Dr. Al-Mashat highlighted its central position within all economic development plans, aligning with the state's structural reform efforts supporting the Egyptian economy, focusing on key sectors driving economic growth and digital transformation, aiming to strengthen Egypt's role as a regional center for technology and innovation. H.E. Dr. Al-Mashat also underscored that the current stage of the Egyptian economy necessitates expanding partnerships with the private sector, contributing to achieving comprehensive and sustainable development.

In the same context, H.E.Al-Mashat applauded the partnership between the Financial Regulatory Authority and the National Telecommunications Regulatory Authority for accelerating the pace of digital transformation in the non-banking financial sector, enhancing citizens' access to these services.

Dr. Mohamed Farid, Chairman of the FRA, stated that today's partnerships aim to support government efforts to achieve financial inclusion, expand the base of beneficiaries of non-banking financial services, especially insurance inclusion.

He further explained that the FRA continues its efforts to expand the spread of insurance products, which began with issuing Board Decision No. 292 of 2023, allowing the electronic marketing of microinsurance documents through the internet via telecommunications companies and licensed e-commerce stores, reinforcing digital transformation efforts and accelerating the digitization of non-banking financial transactions to strengthen the role of the non-banking financial sector in the national economy.

Dr. Farid added that the Unified Insurance Law allowed companies to obtain licenses to operate microinsurance activities, aiming to enhance their growth and development in the coming periods.

Moreover, the Board of the FRA issued Decisions No. 59 and 60 of 2024, allowing insurance companies to market their insurance products approved by the Authority by establishing a branch within the branches or offices of telecommunications companies licensed by the National Telecommunications Regulatory Authority.

These decisions stipulate that agreements between insurance companies and telecommunications companies licensed by the National Telecommunications Regulatory Authority will determine these branches and offices. The agreements may include the presence of representatives of the insurance company at those branches or offices.

The cooperation aims to provide advanced and innovative insurance solutions to clients by leveraging ease of access to insurance services and direct communication with service providers, benefiting from insurance products that provide protection, savings, and investment, adapting to technological advancements using the technological capabilities and diversity of both companies in offering these solutions.

The alliance will also work on creating new marketing channels that are more widespread and present in the Egyptian market, providing insurance solutions that meet customer requirements, offering them a seamless and unique purchasing experience for insurance documents, thereby saving customers time and effort.

In his speech, Dr. Amr Talaat, Minister of Communications and Information Technology, emphasized that the agreements consolidate the vision of the telecommunications and information technology sector in facilitating the provision and governance of services to citizens through their empowerment in light of the vital role played by the telecommunications and information technology sector, indicating that this sector has become a common denominator for all sectors and a fundamental pillar for achieving real renaissance across all other sectors. He added that the signing of the cooperation agreement between the National Telecommunications Regulatory Authority and the Financial Regulatory Authority comes in light of the importance of verifying and ensuring the accuracy of data to provide better services to citizens, stressing that no software system can bear fruit without the availability of accurate, timely, and verified data.

Dr. Amr Talaat pointed out that the telecommunications and information technology sector has been the fastest-growing sector in the country over the past six years, with a growth rate exceeding 16% in the last fiscal year. Its contribution to the gross domestic product reached about 5.8% in the fiscal year 2023/2024, up from 3.2% six years ago, with a target to reach 8% in the near future.

He highlighted the Ministry's keenness to expand the use of information technology in various sectors and services provided to citizens, explaining that one of the main pillars of work in the telecommunications and information technology sector is establishing partnerships between the public and private sectors.

Dr. Ahmed Abdel Aziz, Managing Director at Misr Life Insurance, stated that the strategic alliance with ENS represents the first of its kind in the Egyptian market, launching a new phase of expansion and development as a positive model for innovation and interaction in the financial services and telecommunications market, resulting in increased growth rates, broader awareness of insurance in the Egyptian market, and the use of financial technology.

He added that this alliance represents a cornerstone in providing advanced and innovative insurance solutions to customers, leveraging ease of access to insurance services and direct communication with service providers, and benefiting from insurance products that offer protection, savings, and investment to customers in line with technological advancements, using the technological capabilities and diversity of both companies to provide these solutions.

Dr. Abdel Aziz emphasized that this strategic alliance with E& will ensure the presence of new, more widespread marketing channels in the Egyptian market, providing insurance solutions that meet the requirements of E& customers, enabling them to benefit from a seamless and unique experience in purchasing insurance documents, thereby saving customers time and effort.

Engineer Hazem Metwally, CEO of e&, stated that this alliance will enable effective means to achieve a breakthrough in providing various insurance products to company clients, and this agreement with Egypt Life Insurance aims to meet our customers' requirements, establish extended relationships with them, and provide them with unique and distinctive financial products and services.

He pointed out that this strategic partnership comes within the framework of the company's new vision to transform into an integrated technology company offering a wide range of innovative solutions, products, and services to its customers in Egypt, helping them improve their operational efficiency and enhance their growth, including these innovative insurance services.

Furthermore, the business plan focuses on providing a number of different insurance products in 52 branches of e& as an initial phase nationwide, with efforts underway to complete collaboration steps to include broader geographic areas, enabling more uses of financial technology and positively impacting customer interests, providing insurance and financial solutions more easily and smoothly.