To identify current practices in microinsurance regulation and supervision, a survey of insurance supervisors was carried out by the IAIS in 2006. The survey aimed to identify legislation that encourages or discourages microinsurance initiatives. Forty IAIS member jurisdictions responded. The results showed that although there is much interest in regulation, supervision and policy issues surrounding microinsurance, many supervisors felt that more could be done. Since circumstances vary from one jurisdiction to another, there is no single approach to the regulation and supervision of microinsurance that is universally applicable. As a result, it was decided to review the existing regulatory and supervisory requirements that are important for the development of microinsurance.
This Issue Paper summarizes the results of this review. It generates a common understanding of microinsurance by describing the background, concepts, products, stakeholders, challenges and regulatory aspects. It identifies areas where issues arise in the application of IAIS Insurance Core Principles to the supervision of microinsurance.
