A2ii Newsletter 08/22
Welcome! In this newsletter, we provide you with updates on the work of the A2ii, events and publications, and experiences and learning on inclusive insurance regulation and supervision across jurisdictions over the past month.
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In response to high demand from insurance supervisors, the International Actuarial Association, the Access to Insurance Initiative and the International Association of Insurance Supervisors have launched a self-directed virtual training on actuarial skills for supervisors.
The modules are hosted on the Connect.A2ii learning platform and are open to all supervisors with a Connect account free of charge. Read more here…
On 21 July, the most recent IAIS-A2ii Supervisory Dialogue took place. This dialogue was composed of a short presentation followed by a panel discussion, where supervisors listened to experts from different jurisdictions discuss the topic of Conduct and Culture.
‘Culture is complex. Culture is influencing how an insurer or intermediary designs products and deals with clients. Culture is essential for a fair treatment of customers. This is particularly relevant for vulnerable groups and this is why culture must get the attention of supervisors and on the agenda of on-site supervision’ said Manuela Zweimüller, Head of Implementation at the IAIS, in her welcome remarks.
During the recent Supervisory Dialogue, Lauren Eckermann, Senior Policy Advisor at the IAIS provided a comprehensive overview of the meaning, influence and importance of corporate culture, and presented the key aspects of the IAIS Issues Paper on Insurer Culture.
This presentation was followed by a panel discussion moderated by Charlotte Cross, Chair of the IAIS Market Conduct Working group and Head of Department for Wholesale Insurance, Supervision Division at the UK Financial Conduct Authority. The panellists were: Vanasa Padayachee, Manager of Insurers and Retirement Fund Benefit Administrators Supervision at the South African Financial Sector Conduct Authority (FSCA), Lim Hsin Ying, Director of Consumer and Market Conduct at Bank Negara Malaysia (BNM), and Germán Rodriguez, Legal Director at the General Insurance Superintendency of Costa Rica (SUGESE). The panel covered three main aspects:
1. The importance of Conduct and Culture
2. Compliance and enforcement
3. Impact of Culture on treatment of vulnerable consumers and inclusive insurance
During both sessions, Vanasa Padayachee shared South Africa’s experience on measuring the conduct risk profile of entities that they supervise and the impact that this has on the consumer. She also shared how the FSCA is enforcing requirements related to culture:
Following the introduction of Principles for Insurers in 2010, South Africa introduced the Policyholder Protection Rules, which relate to the fair treatment of customers. Padayachee provided first-hand examples on how FSCA deals with issues regarding compliance, misconduct management, and the effects of culture in the fair treatment of vulnerable customers, among others.
During the morning session, Lim Hsin Ying shared Bank Negara’s perspectives and experiences on the topic. BNM issued a principle-based and outcome-based policy document on Fair Treatment of Financial Consumers (FTFC) in 2019 and has been enforcing it since then. This document intends to clarify regulatory expectations and set specific principles, clarify expected outcomes, and overlay with examples of good and poor practices as guidance. Lim Hsin also shared some of the challenges in putting these policies into practice as opposed to the purely theoretical development.
During the afternoon session, Germán Rodríguez, shared SUGESE’s approach on the topic of insurer culture, how they perceive it to be an essential aspect of protecting policyholders and inclusion. In February 2022, 21 participants of Costa Rica’s insurance market committed to a Protocol of Responsible Business Conduct. Rodríguez shared insights on what fair treatment of customers involves, highlighting the importance of considering the specific needs of each group and their vulnerabilities. Regarding this topic, in August 2020, the Regulations for Inclusion and Access to Insurance was approved in Costa Rica, promoting inclusion and access while ensuring appropriate levels of consumer protection.
Both sessions were characterised by a lively discussion between the panelist, where participants were able to hear from the experiences from different jurisdictions and observe the similarities and differences between them. The recordings of this session will soon be available on Connect.A2ii, our supervisor-only learning platform.
If you have any questions or comments, please send them to email@example.com
Inclusive Insurance Business Models for Africa - 7th Eastern and Southern Africa Regional Conference on Inclusive Insurance | 13-15 July, Livingstone, Zambia
The two-day conference gathered about 120 participants to discuss major trends, developments and learnings for inclusive insurance in the African region. The conference was opened by the Zambian Minister of Finance and National Planning, Hon. Dr Situmbeko Musokotwane, who called the insurance industry to make themselves relevant and help consumers understand the value of insurance.
The A2ii moderated the second panel session of the conference on “Developing and regulating inclusive insurance markets” with Yizaso Musonda from the Zambian Pensions and Insurance Authority (PIA), Elias Omondi from FSD Africa, and Ancellmi Anselmi, Microinsurance Coordinator in Tanzania. The discussion focused on the role of the regulator in market development, key challenges to the development of inclusive insurance markets and strategies to overcome those as well as regulating for innovation and leveraging the benefits of digitalisation.
Some key aspects of the discussion included the need for the insurance supervisors to balance their different mandates, in particular the encouragement of market development and innovation while at the same time ensuring that consumers are protected. Yizaso Musonda shared the PIA’s approach to allow for the testing of innovations, while at the same time closely monitoring client outcomes for products that are in a testing phase, which is of particular importance when it comes to inclusive insurance and vulnerable consumers. Challenges to inclusive insurance market development remain on both demand and supply side: weak demand due to low insurance awareness and trust is among the key issues; a point which was also emphasized by Craig Churchill of the ILO in his keynote speech. Panellists also agreed on a number of supply-side issues, including low quality of supply, due to a limited understanding of the customer segment by the insurance industry, lack of data and technical capacity. This becomes apparent for example in the unavailability of local mortality tables (‘We live like Africans and die like Europeans’, as Anselmi put it).
Looking at innovation and digitalisation, a key theme included the need to coordinate between different regulators and create consistent and enabling conditions for the market to come up with innovative products.
A couple of key messages on the role of the regulator in market development emerged:
Moderate, coordinate, cooperate – Regulators can be at the center of market development by assessing the market, bringing stakeholders together, providing a platform and moderating; but they cannot be not sole drivers of development. Innovators need to be supported and collaboration among enables encouraged. Elias also highlighted the need for investments in supporting infrastructure to bridge the “missing middle” in effectively reaching out to customers. Anselmi also highlighted the need for increased collaboration and exchange among African countries on the common challenges they face.
Envision and plan – understanding gaps and barriers is not enough. A vision and clear implementation plan are needed for an effective development of the inclusive insurance market. There is a need for long-term strategies on both the regulator and the industry’s side. Or as Yizaso put it in her concluding remarks: Benefits take time to unfold.
“Unlearn and relearn” – Regulation follows innovation. Supervisors increasingly engage with the industry to understand business models before defining regulatory requirements. The challenge for supervisors in this context remains the effective protection of consumers, while at the same time allowing for innovation to happen.
Webinar on role of public policy and regulation in insurance development | 6 July
On 6 July, Hannah Grant, Head of A2ii Secretariat, took part in the Geneva Association and Insurance Development Forum (IDF) panel discussion on Insurance Development in Emerging Markets: The role of public policy and regulation the GA and IDF report. Other panellists were the report’s co-authors Bill Marcoux, Chair of Regulation & Resilience Policies (LRRP) Working Group, IDF and Dennis Noordhoek, Director Public Policy & regulation, Geneva Association as well as Corneille Karekezi, Group Managing Director and CEO, Africa Re and Sang Lee, CEO, Manulife Vietnam.
In line with the report’s conclusions, panellists discussed the critical role of good public policy and regulation in ensuring that the insurance sector can play its part in supporting economic growth, societal development and resilience. Key factors that drive insurance market development and close protection gaps were discussed: sufficient political prioritisation of insurance, higher levels of financial and insurance literacy and risk awareness among all stakeholders, effective and efficient insurance regulation and supervision, increasing trust in insurance solutions. Click here to watch the recording.
5th High Level Meeting for Insurance Supervisory Sector in Arab Countries | 13 July
This supervisor-only High-Level Meeting on the topic of ‘Green and sustainable insurance in light of the climate change risks and the repercussions of the post-Covid 19 pandemic’ was organised by the Arab Monetary Fund and attracted over 150 supervisors from the Arab region.
Hannah Grant, A2ii Head of Secretariat, presented in the opening session on the role that insurance supervisors can play in closing the climate risk protection gap. Her presentation was then followed by Dr. Mathew Connell, Director, Policy and Public Affairs, Chartered Insurance Institute who spoke about the integration of Environmental, Social and Governance (ESG) considerations into the insurance sector, and in particular the role of regulatory authorities in promoting green and responsible insurance. The subsequent session included case studies from supervisory authorities in the region, with presentations from Egypt and United Arab Emirates on how they are integrating ESG considerations into their work.
Launch of the Index Insurance Best Practices for Insurance Regulators and Practitioners | 16 August
The UN Capital Development Fund’s (UNCDF) Pacific Insurance and Climate Adaptation Programme (PICAP) and the Access to Insurance Initiative (A2ii) are hosting a joint webinar on 16 August to launch the ‘Index Insurance Best Practices for Insurance Regulators and Practitioners' (or the CDRI Best Practices Guideline). The publication was designed to inform and guide insurance regulators and other industry practitioners in the nascent but developing theme of climate disaster risk insurance especially with a focus on consumer protection and a risk-based approach to regulation. The publication is based on regulatory and market practices from ten different developing countries.
Click here for more information and to register.
A2ii Supervisory Special: Honduras Case Study | 17 August
An A2ii Supervisory Special will take place on 17 August in Spanish, with a case study presented by Honduran supervisors. The announcement in Spanish is below:
Especial de Supervisión A2ii: estudio de caso de Honduras | 17 agosto
La A2ii los invita al primer Especial de Supervisión de la A2ii en español. Para esta ocasión, la Comisión Nacional de Bancos y Seguros de Honduras (CNBS) presentará un caso práctico, para después dar paso a una discusión e intercambio entre pares. La reunión será exclusiva para supervisores y supondrá una gran oportunidad para aprender del tema con un ejemplo de caso real.
El evento tendrá lugar el día 17 de agosto de 9:00 a 10:30 horario de Honduras (10:00-11:30 Ciudad de México y 11:00-12:30 Santiago de Chile) a través de la plataforma Webex. La reunión tendrá lugar completamente en español. Haga clic para para registrarse.
Regulatory challenges and supervisory demands in facilitating remittance-linked insurance, (SDG 1) - Public Dialogue | 29 September
Approximately 281 million migrants, nearly half of whom are women, live and work outside their home countries. Any unforeseen events affecting these migrants, such as death, sickness or job loss, negatively impact the financial stability of the recipient family, leading to an excessive debt trap, inequality and poverty. Insurance and pensions are essential safeguards for migrant families against such unforeseen events. Despite international conventions and the focus of the SDGs, less than 3 percent of migrants from low-income countries have access to portable social protection schemes that could address these issues, necessitating a comprehensive market-based approach toward migrant insurance.
However, there is still a regulatory grey area in terms of supervisors’ roles. What can supervisors do to facilitate insurance products targeted at migrants and their families? How can specific migrant needs be reflected? These and other questions will be addressed during this dialogue, exploring the existing regulatory challenges and possible pathways to explore the full potential of migrant insurance.
For this occasion, A2ii and IAIS are partnering with UNCDF.
William Price, UNCDF specialist on migrant financial resilience, will be presenting a set of priorities to achieve this ambitious agenda.
Stay tuned for more information! Further speakers will be confirmed soon.
The dialogue will take place via Webex and is open to the public. It will start at 14:00 CEST and last 75 minutes, with simultaneous interpretation to French and Spanish.
Regional Training Seminar for Insurance Supervisors | 22-23 September, Lima, Peru
The Regional Training Seminar for Insurance Supervisors on ‘Challenges facing Insurance Markets Systems in Latin America’ is being jointly organized by the Latin American Association of Insurance Supervisors (ASSAL), the International Association of Insurance Supervisors (IAIS), the Access to Insurance Initiative (A2ii), the Microinsurance Network (MiN) and the Superintendency of Banking, Insurance and Private Pension Fund Administrators of Peru (SBS).
This event will take place at the SBS Training Centre, Lima, Peru, on 22-23 September, 2022. The agenda of the seminar will include topics on risk-based capital, stress testing, cybersecurity, catastrophic risk and the protection gap, amongst other issues. Click here for more information.
The Access to Insurance Initiative is offering two full scholarships for insurance supervisors for the online course ‘Insurance for Development’. The scholarships will cover the course tuition and will be awarded through a competitive application process. The deadline for scholarship requests is Tuesday, 16 August 2022. Applicants will be notified of the organisers’ decision by Tuesday, 23 August 2022. Find out more on our website.
CONVENTION A – an online event for the actuarial community | 19-23 September
From September 19 to 23, 2022 the European Actuarial Academy (EAA) with support of actuview will organise the first CONVENTION A as an online-only conference.
The theme is ‘Connecting Knowledge’. The event program is jointly created by 35 institutions from the actuarial community and companies active in the insurance industry. During the five days of the event, each participant will find offerings in a convenient time zone. More than 180 hours of actuarial content will cover all fields.
Find all details on the partners, speakers, and the conference programme on the event page.
Through the A2ii, a limited number of free tickets are available. Click here to request your ticket.
We are pleased to welcome Ronaldo ‘Ronnie’ Limbago to the team as the Regional Coordinator for Asia. He is responsible primarily for relationship management with Asian supervisors, including enhancing their capacities in inclusive insurance through A2ii offerings.
His background is in training and capacity development. He previously held positions at the Philippine Trade Training Center, focusing on MSMEs, InWEnt (Internationale Weiterbildung und Entwicklung), where he handled projects on social accountability and microfinance in the Philippines and Indonesia, the GIZ Office Manila, and most recently, the Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia III (RFPI Asia III), where he has worked on disaster risk insurance, Covid-19 emergency support measures for MSMEs, and agriculture insurance.
Ronnie graduated with a Bachelor Science in Commerce with a major in Business Administration from the University of Santo Tomas, the Philippines’ oldest university. From 1994 to 1996, Ronnie undertook a scholarship on the International Marketing of Furniture to Germany sponsored by CDG-Germany and implemented by the Export Akademie in Reutlingen. He has since served as an alumni coordinator of Philippine-German alumni as partners of German institutions for development cooperation. He speaks English, Pilipino, and German.
We are pleased to welcome Stephanie Campos to the A2ii team as an intern.
Stephanie supports the A2ii team on different capacity building tasks including online training modules, Monitoring and Evaluation, and the inclusive insurance innovation lab. Before starting at A2ii, Stephanie interned at the Latin American United Nations Office for Project Services (UNOPS) as a Regional Outreach and Communications Intern and worked on Project Development for the Andres Bello Agreement in Panama City, Panama. She currently holds a dual degree BBA in Marketing and BEc in International Business from Hofstra University and the Dongbei University of Finance and Economics, respectively. She is currently pursuing a Specialized Master´s degree in International Cooperation and Development at the Catholic University of the Sacred Heart in Milan, Italy. Stephanie is fluent in English and Spanish and speaks some French and Italian.
Insurance and the Sustainable Development Goals (SDGs)
The SDG pages include resources on the importance and the role of insurance across nine SDGs: 01 No Poverty, 10 Reduced Inequalities, 02 Zero Hunger, 03 Good Health and Well-being, 05 Gender Equality, 08 Decent Work and Economic Growth, 09 Industry Innovation and Infrastructure, 13 Climate Change and 17 Partnerships for the Goals.
Supervisory KPIs Lexicon
Interactive, searchable directory of KPIs for insurance supervisors across four pillars: prudential soundness, market conduct, insurance market development and the Sustainable Development Goals, with four accompanying handbooks.
Inclusive Insurance Regulations Map
The interactive map incorporates data about regulation and regulation which supports inclusive insurance sourced through A2ii's research, work and interaction with supervisory authorities worldwide.
ICP Self-assessment Tool
The tool is intended to help supervisors assess the level of observance of the Insurance Core Principles (ICPs).