The lack of awareness of insurance in addition to lack of data on women with limited income, have led to the insurance sector underserving this segment of the population.
There are currently large gaps in meeting women’s protection needs, including, for example, the provision of full and affordable insurance coverage, not only in Egypt but also in other parts of the world.
According to a study by the Insurance Federation of Egypt (IFE), to meet the need for coverage and benefits that are based on the size of the risks that women may be exposed to, insurance companies should go beyond traditional microinsurance coverage to design insurance products such as micro-pension plans, simple hospitalisation products, multi-risk products, family coverage, life insurance with the advantage of preserving the cash-value option, and others.
In brief, insurance companies can create basic insurance products that would be of low cost and are specially designed for women with limited income and their families, reported Youm7.
There is no doubt that microinsurance has proven its importance in particular for women with limited income, covering gender-related risks such as “mother’s health” and “loss of income due to stopping work to take care of a family member”.
However, women are still in need of more forms of insurance coverage. Women are likely to bear the burden of providing income for their families alone. Therefore, providing micro-insurance coverage for the head of the family or the breadwinner who is a woman prevents financial shocks that the family may be exposed to. In addition, long-term savings and pension plans can reach a wider group of women, not just entrepreneurs who are typically targeted by financing products.
On its part, the IFE has called on industry unions, chambers of commerce, investor associations, and other bodies interested in empowering women to participate in efforts to put in place the appropriate mechanism for introducing insurance products specially designed for women, and to raise awareness of the products.
Source: MEIR
