On the topic: Given the typically low margins on low value policies, most successful microinsurance business models innovate distribution channels in order to minimise distribution costs and scale up the number of policies sold, either by leveraging groups or the infrastructure and reach of aggregators. These new ways to sell insurance typically result in long distribution chains involving a variety of entities and their employees, some of which may not traditionally be regulated by the insurance supervisor.
Consultation Call Reports
On the topic: Inclusive insurance markets require a proportionate approach to product oversight including product standards. Supervisors have different options for product oversight before and after product launch. The overall objective of such steps is to discourage products and services that may cause consumer detriment from reaching the market. Some insurance supervisors require the pre-approval of insurance products, in both life- and general lines or in one of the two. Others have opted for a file-and-use process.
The fourth consultation call focused on agriculture insurance, an issue that has hardly been discussed when considering inclusive insurance markets. It was attended by almost 30 supervisors from various jurisdictions across Asia, Africa, Latin America and the Caribbean.
“This is the third call I’ve participated on and I can say that in terms of the quality of the outputs and the conversations taking place between supervisors, it’s shown to be immensely beneficial and I think that’s consistent with the feedback that has been returned to the A2ii and IAIS from IAIS members.”
These were the opening remarks made by IAIS Secretariat staff Conor Donaldson for the third Consultation Call held on 22 May.
"Technical innovations are a key issue, not only for financial inclusion, but for the future development of the (insurance) regulatory approach." These were the opening remarks of IAIS Secretary General Yoshihiro Kawai in the A2ii’s second Consultation Call on 24 April.
"Setting guidelines does not mean anything without implementation." These were the opening remarks of IAIS Secretary General Yoshihiro Kawai in the A2ii’s first Consultation Hour call on 27 March. The first call focused on the definition of microinsurance. It was attended by 35 participants from across Asia, Africa and Latin America.
Since March 2014 the A2ii hosts bi-monthly consultation calls for supervisory and regulatory authorities. The calls offer an exchange platform to discuss current regulatory and supervisory topics and trends around access to insurance. They are opened with an input presentation introducing the key topic of the month and followed by three question and answer rounds where participants can exchange their experiences and get guidance by experts. Participation is restricted to supervisors and regulators. The calls are held in English, French and Spanish.