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The Role of the Insurance I ndustry in Financial I nclusion. Financial Inclusion Conference | 17 June 2014 | Cairo Elena Butarova, Managing Director and Deputy Chairman, MetLife Alico Egypt. Current State of Financial Inclusion in the Region

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The role of the insurance i ndustry in financial i nclusion

The Role of the Insurance Industry in Financial Inclusion

Financial Inclusion Conference | 17 June 2014 | Cairo

Elena Butarova, Managing Director and Deputy Chairman, MetLife Alico Egypt



What is financial i nclusion
What is financial inclusion?

Financial inclusion means that households and businesses haveconvenientaccess to a full suiteof quality, affordable financial services, delivered by trustworthy providers with respect for the customer.

These services allow improved management of incomes and assets, ultimately contributing to greater self-sufficiency and the ability to pursue more out of life.


Half the world excluded from formal jobs and finance
Half the world excluded from formal jobs and finance

What about Egypt?

40+%

below

$2/day

~50%

with

informal

jobs

50+%

w/out formal financial

account

80+%

w/out formal financial

account



Financial inclusion o pportunities r emain s ignificant
Financial inclusion opportunities remain significant

MENA Penetration Rates (estimates)

99%

241 m

55%

105 m

84%

18 m

MICROCREDIT

Source: CGAP, 2011

(1) Current microcredit borrowers divided by Sanabel estimate for potential demand for microenterprise credit (22 million)

(2) Current commercial and postal depositors for Egypt, Algeria, Jordan, Morocco, Tunisia and Yemen divided by their total population

(3) World Insurance Forum White Paper estimate of insurance penetration divided by MENA adult population



The r ole of i nsurance in financial i nclusion
The role of insurance in financialinclusion

SAFETY

Security, stability, protection

BASIC NEEDS

PHYSIOLOGICAL

Food, water, shelter



Challenges
Challenges

For the customer

For the Insurer

  • Understanding customer needs

  • Underwriting / scoring experience with low-income segments

  • Distribution cost per policy

  • Reliability of payment mechanisms

  • Trust in financial institutions

  • Insurance awareness and peers’ referrals

  • Reachability

  • Ease and convenience of payment


Opportunities
Opportunities

  • Gam’iyatculture

  • Mobile technologyiseverywhere

  • Limited competition as the opportunity is huge

  • Collaboration neededamongstakeholders (industries, NGOs, governments)



Helping people pursue more from life
Helping people pursue more from Life


Some figures
Some figures

  • Established in 1868

  • 90+ million customers

  • Top 5 position in severalemergingmarkets

  • Operating in Egypt since 1997

  • First life insurance company to enter the Egyptian market with a major foreign shareholding structure


Metlife foundation
MetLifeFoundation



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