The Access to Insurance Initiative (A2ii) and the International Labour Organization (ILO) through its Impact Insurance Facility (IIF) have commissioned this study to assess the impact of microinsurance regulatory frameworks on developingn inclusive insurance markets by way of a Regulatory Impact Assessment.
The project managed by the A2ii, which ran for 46 months concluding in May 2016, contributed to the growth of the inclusive insurance market in Latin America and the Caribbean.
This paper considers the various regulatory approaches implemented by insurance regulators and supervisors globally in order to achieve the objective of inclusive insurance market development. The primary question that this paper seeks to address is: what is the optimal regulatory approach to be followed by a particular country to promote increased access to insurance in a particular product market or across multiple product markets?
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.
The note describes the role of insurance for development and the concept of pathways to development. On the promotion pathway insurance promotes development objectives such as private, agricultural and financial sector development; on the protection pathway it fosters household resilience.
Context: Policy makers and supervisors aim at making insurance markets more inclusive and adopt varying regulatory approaches. The International Association of Insurance Supervisors (IAIS) provides a globally accepted framework for the supervision of insurance through the Insurance Core Principles (ICPs) and related guidance.
Context: Insurance supervisors face an increasing variety of business models in microinsurance. Supervisors need to nderstand which business models prevail in specific product markets leading to new consumer protection risks, as well as regulatory responses to these risks in various jurisdictions.
The Technical Note No. 3 summarizes the objectives and the the oberservations of the self-assessment and peer review tool based on the Application Paper Regulation and Supervision supporting Inclusive Insurance Markets (2012) conducted by the IAIS and the A2ii in 2013.
The Technical Note No. 4 introduces the The training module "module on regulation and supervision supporting inclusive insurance markets" which uses a learning environment to support supervisors to effectively implement the concepts set out in the Application Paper on “Regulation and Supervision Supporting Inclusive Insurance Markets (2012)”.