Key Performance Indicators are a powerful tool for supervisors to regularly evaluate the development, soundness and appropriateness of the inclusive insurance sector. ICP 9 on Supervisory Review and Reporting sets out that risk-based supervision should use both offsite monitoring and onsite inspection, and supervisors should collect the necessary information to conduct effective supervision and evaluate the insurance market.
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Insurance fraud is a phenomenon that every supervisory authority comes into contact with sooner or later, and if left unchecked it can seriously harm the health of the insurance market. On this consultation call, we had a number of supervisors who shared their approach to dealing with fraud: they spoke about the current state of fraud in their market, how they monitor it, and what kind of measures they have taken to address it.
The insurance penetration rate is traditionally calculated based on total premiums as a percentage of Gross Domestic Product (GDP). This has served as a useful high-level measure of insurance development, while providing a good basis for international comparison. However, supervisors pursuing more specific policy goals, such as financial inclusion or client value, may find that this measure on its own does not provide enough meaningful information to guide policy strategies.
In response to requests from the IAIS Executive Committee as well as Latin American supervisors the next A2ii-IAIS Consultation Call will be on the topic of reinsurance. The call focused on reinsurance from a host jurisdictions perspective and will examine questions around enforcement of contracts, direct and indirect supervision of reinsurers and contract oversight among other issues.
On the topic: With access to insurance high on the financial inclusion agenda, efforts are being undertaken to develop inclusive insurance regulatory frameworks in many jurisdictions. Effectively implementing such frameworks requires a multifaceted approach involving numerous stakeholders and proportionality considerations.
On the topic: Regulatory incentives to foster the growth of inclusive insurance are important. Regulation needs to be proportionate to the nature, scale and complexity of risks inherent in individual insurance business and strike a balance between “motivating the industry” and “protecting the consumer” if it is going to achieve its intended objectives and expand access to insurance for low income consumers.
Incentives for insurers and examples of a proportionate approach include:
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.
La prochaine consultation téléphonique AICA – A2ii aura lieu le jeudi 23 mars 2017. Elle aura pour thème « Mesurer le développement de l’assurance : au-delà du taux de pénétration ».
La próxima Llamada de Consulta de IAIS-A2ii se llevará a cabo el martes 23 de marzo de 2017 y versará sobre “Medir el desarrollo de los seguros: más allá de la tasa de penetración de seguros”.
En réponse aux requêtes du Comité exécutif de IAIS ainsi que des superviseurs latino-américains, le prochain appel de consultation A2ii-IAIS portera sur le thème de la réassurance. L'appel s'est concentré sur la réassurance du point de vue des juridictions et examinera les questions relatives à l'exécution des contrats, à la supervision directe et indirecte des réassureurs et à la surveillance des contrats, entre autres questions.