The list of market development KPIs is sorted into three broad categories:
- Market Inputs are deemed as the fundamental building blocks of insurance market development. Much of this data is broader than the insurance sector and can be pulled from global indices, government data, cross-sectoral financial sector data or academic research.
- Market Operations describe how the “wheels are turning” and how the market is functioning. These are influenced by the market inputs.
- Market Outcomes are where most consumer outcomes are captured. These capture observable results that arise from Market Inputs and Market Operations. They also reflect development objectives or desired outcomes such as access to insurance.
In using the KPIs, supervisors can take a 'modular approach' i.e. select KPIs that correspond to their specific objectives such as KPIs under the ‘Access and Outreach’ and ‘Inclusive insurance’ components. Supervisors can also take a 'dashboard approach' i.e. combine different components and KPIs that gives a big-picture analysis, therefore helping supervisors to identify priority or problem areas based on the larger market context.
There is no standard global approach to defining and measuring insurance market development, beyond a few common indicators such as the insurance penetration rate and insurance density. While some emerging market supervisors have long played a role in this area, strategies vary based on the needs of the local population, economy and national development goals. Issues could range from inclusion, digitalisation, liberalisation, fragmentation, intermediary competence to climate resilience.
The KPIs in this list are anchored on the following conceptual framework (see figure below), developed and adapted by the team based on Chamberlain et al (2017). The framework covers all potential angles of market development. In having multiple components, it can be tailored to the diverse development priorities of emerging markets. It is designed to help supervisors track development areas that are important to them, rather than to fix a definition of market development. The KPIs are drawn from a cross-section of established work on inclusive insurance, supervisory practices, academic and development research. Examples are provided in the ‘Notes’ column where available.