As prepared for delivery. 

Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority

Distinguished Guests,

It is a pleasure to be with you all today for this important event.

Today, the world faces multiple crises on the front lines of the COVID-19 pandemic, the continuing destruction & degradation of our natural world and a rapidly changing climate.

The fragilities of our societies, economies and healthcare systems have all been laid bare.

In this uncertain time, insurance and risk financing can provide a critical safety net, protecting assets, lives, and livelihoods from the impact of crises.

Egypt has over 100 million people, with more than half living in rural areas.

Due to climate change, the disaster risks facing Egyptians are exacerbated and, if not addressed, could seriously implicate the country’s response to a national emergency.

Egypt is among the highest-risk countries, ranking 24th of 193 according to the 2022 World Risk Report.

Risk management is a key driver to help mitigate the impact of disaster risks, while building adaptation and resilience to climate change. Yet, in Egypt only 26% of adults had an account at a financial institution in 2021, and only 3% had a mobile money account Insurance penetrates only 0.83% of the population.

The need for potential risk management solutions is high.

The business case is clear: Egypt’s untapped, underserved market is left exposed to the country’s disaster risk landscape and needs simple, financial risk management solutions.

Financial ecosystem players, from actuaries to intermediaries, insurers, and development organizations, must align with a clear action orientated strategy to address these needs and respond to the business case.

Climate change is a critical tipping point, not only for governments. Business models and practices must change. Fast. 

When we look at environmental challenges, we see how insurance financing can play a strong role in agribusinesses, water and irrigation, sea-level rise and climate change adaptation.

COP 27, with its renewed focus on the need to mobilize financing and target implementation, is an important juncture to reflect on what the insurance industry can contribute to strengthening financial resilience to climate change risks.

The leadership shown by Egypt at COP 27 needs to be followed up with action to enhance the resilience of Egypt and Egyptians. UNDP is supporting the country through its interventions, including:

Strengthening the actuarial profession in Egypt to allow innovations in risk management products and pricing.

Helping to build greater resilience for lower-income Egyptian families and businesses through a process leading to a significant expansion of inclusive insurance.

Working with various agencies of the government of Egypt to help develop and implement a robust strategy to ensure an adequate disaster risk financing program to manage the climate change risks that were discussed at COP27.

Thankfully, developing and scaling affordable insurance and risk financing solutions for climate-related shocks and disasters is very much possible.

Through its flagship Insurance and Risk Finance Facility, UNDP works with industry and governments in 27 countries to develop much-needed insurance and risk finance solutions. It contributes to designing policies, strategies and studies to bridge the challenges we face today.

UNDP is proud to have recently joined forces with Milliman to build actuarial capacity and help predict and prepare for risks in these uncertain times.

When insurers and institutions are better prepared for risks, they can ensure no one is left behind.

Ladies and Gentlemen,

As the 2021/22 Human Development Report shows, insurance, investment and innovation, are key for countries to tackle uncertainty and enhance financial resilience, thus delivering better, more inclusive development.

The achievement of multiple Sustainable Development Goals is predicated on good insurance products. And good insurance products require effective actuaries. UNDP’s Insurance and Risk Financing Facility and the government focus on these key risk management interventions to facilitate Egypt’s efforts to achieve the SDGs.

This event today brings together the government with leading insurance industry executives to jointly co-design a roadmap for insurance and disaster risk financing in Egypt to build forward better.

I look forward to the workshop’s outcome.

Thank you.