Evolving Microinsurance Business Models and their Regulatory Implications

One of the aims of the cross-country synthesis exercise is to gain a better understanding of the dynamics, development and evolution of microinsurance markets. Identifying discrete microinsurance business models allows the roles and incentives of the players involved in the provision of microinsurance to be disaggregated so as to better understand the way that the microinsurance market evolves across countries and to gauge the risks involved. Business models give rise to a number of consumer protection risks. Understanding which business models prevail in specific markets thus also results in a greater understanding of the kind of risks that predominate. Once the risks are identified, the analysis considers what the drivers of the specific risks are, as well as the regulatory implications of the business models. From this, appropriate regulatory responses can be designed for individual markets.