A2ii Newsletter June-July 2024
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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iii-Lab Update | Upcoming Events | News | Staff Updates | FeMa Meter | Blog | Index Insurance Insights | ICP Tool | Trainings | Useful Tools on Our Website
iii-Lab Update
International Incubator Event | 23-25 July, Frankfurt, Germany
Current and past Inclusive Insurance Innovation Lab (iii-lab) participants attended the three-day iii-lab international incubator event which brought together alumni from labs 1-3 with current lab 4 participants for the first time.
A highlight of the first day was an alumni stories panel with representatives from Labs 1-3 from Argentina, Costa Rica, Grenada, Kenya, Morocco, and Zimbabwe, who shared their experience with the lab, the results of their prototypes, and advice with current lab participants and invited guests. Then, each alumni hosted a “learning circle” in small groups discussing topics such as:
Private sector and industry collaboration
Role of supervisors working
How do you develop a model product?
Focusing on beneficiaries and human-centred design (the ResilientME! game)
On the second day, alumni acted as coaches for the country teams, helping them to refine their prototype ideas as they worked in groups. Country teams worked on consolidation of the inputs and refined their presentations for the pitching session on day 3.
Alumni also shared valuable experiences from their lab journeys, challenges that they faced and how to overcome them as a team. They covered how to institutionalise solutions developed, and how to include them into the national insurance ecosystems.
The third and last day was dedicated to a Dragon's Den style pitching session of prototypes from all three countries. The panel consisted of Laura Schäfer, Insuresilience Solutions Fund; Matthias Range, A2ii; Martina Wiedmaier-Pfister, Inclusive Finance and Inclusive Insurance / Climate Risk Insurance Specialist; and Manoj Pandey, Climate Risk Financing Specialist UNEP FI.
This international incubator event allowed lab participants and alumni to continue to build the lab community, support each other, and learn from each other.
Coming up next, the implementation process will begin, wherein country teams will start experimenting, testing and implementing the newly developed prototypes in the real world. They will each have a national in-person ecosystem event to present their prototype to the wider national ecosystem, and international sessions will be held where they will receive feedback from their peers.
The 4th iii-lab is a 12-month journey where teams from Armenia, Nepal and Senegal, consisting of key stakeholders from the insurance sector, are collaborating on innovative insurance solutions to increase resilience against the impact of climate change. For more information on the iii-lab, click here.
Upcoming events
Capacity building for insurance supervisors: leveraging actuarial skills | 17-20 September, Kuala Lumpur, Malaysia
The training is organised by the Access to Insurance Initiative (A2ii), International Actuarial Association (IAA), International Association of Insurance Supervisors (IAIS), and the ASEAN Insurance Training and Research Institute (AITRI).
This training targets supervisors from Asia. It aims at strengthening the understanding and implementation of the actuarial concepts and tools necessary to support effective insurance supervision and regulation.
The training will cover the following areas:
1. Enterprise Risk Management
2. Valuation and Actuarial Reports
3. Reinsurance
4. Risk-based Capital
The approach of this training will be on learning principles, while being as simple and practical as possible.
The mandatory onboarding session will take place virtually on 13 August 2024, from 08:00 to 11:30 CEST, while the training takes place from 17 to 20 September 2024. The training consists of a combination of online self-paced modules, and in-person live sessions which include a range of lecture-based sessions, case studies, breakout sessions and quizzes. The self-paced modules must be completed before the live sessions.
The training will be held in English, with no tuition fees. However, participants will be responsible for their transportation and accommodation.
This in-person training is open for insurance supervisors based in Asia-Pacific only. The deadline for registration has been extended to 7 August 2024.
Click here for more information.
News
Matthias Range joins Toronto Centre’s Insurance and Pensions Advisory Board (IPAB)
A2ii is pleased to announce that Matthias Range, its Executive Director, has joined Toronto Centre’s Insurance and Pensions Advisory Board (IPAB).
The IPAB is a global body composed of fourteen experts with a deep understanding of financial supervision in the insurance and pensions sectors. Mr. Range brings his extensive knowledge and experience to this group.
Toronto Centre, a leading global non-profit organization, is dedicated to providing leadership training to financial regulators and supervisors worldwide. A2ii and the Toronto Centre share a long-standing partnership, most notably through the Inclusive Insurance Training Programme, which equips insurance supervisors from developing and emerging economies with capacities to build up inclusive insurance in their countries.
Case Study launched: Bolivia’s Journey to Inclusive Insurance
In August 2022, the Bolivian Pension and Insurance Supervisory and Control Authority (APS) launched an Inclusive Insurance Regulation aimed at increasing access to insurance products for low-income populations.
The journey began with Bolivia's participation in the A2ii-IAIS-Toronto Centre Inclusive Insurance Training in 2019, an instrumental step in the country's decision to launch an inclusive insurance regulation in 2022. The regulation, developed over the course of several years, faced political challenges and a global pandemic and was a direct result of the action plan drawn up by the participants from the APS during the training, subsequently supported by the A2ii and the Toronto Centre until its launch.
After the regulation was launched and implemented in 2022, A2ii interviewed key stakeholders to learn about their experience and perspectives in the regulatory process. These experiences are showcased throughout the case study, to serve as an example and an incentive for other insurance supervisors in their journey to inclusive insurance.
To find out more about our findings, read the case study on our website.
A2ii-IAIS Public Dialogue: Launch of the Report on Sustainability and ESG Regulatory Landscape in the CEET region | 27 June
The insurance industry plays a vital role in mitigating and pooling risks, with core principles deeply intertwined with environmental, social, and governance (ESG) standards. As demands from investors, end customers, policymakers, and standard setters continue to rise, the explicit incorporation of ESG factors into insurance operations becomes increasingly essential.
To delve deeper into how ESG standards are integrating into the insurance sector across Central, Eastern Europe, and Transcaucasia (CEET), the Access to Insurance Initiative (A2ii), in collaboration with the Insurance Supervisory Agency of Slovenia (AZN), conducted a survey in 2023 aimed to evaluate the current state of insurance regulations and initiatives encouraging sustainable insurance growth in the CEET region. A forthcoming publication will report on the results of the survey.
In this Public Dialogue, we discussed the findings from this survey, which shed light on the progress and challenges of integrating ESG considerations into the CEET region's insurance sector. The speakers were Klime Poposki, EERIA Vice President, Gorzard Cibej, Managing Director at the Insurance Supervision Agency of Slovenia, and Ksenija Dencic-Mihajlov, Professor at University of Nis, Serbia.
Click here to watch the recording.
First Latin-American Congress of Inclusive Insurance | 15-19 July, Santa Cruz de la Sierra, Bolivia
From 15 to 19 July 2024, the First Latin-American Congress of Inclusive Insurance “There is no growth without inclusion” took place in Santa Cruz de la Sierra, Bolivia.
The event, jointly organised by the Bolivian Insurance Brokers Association (ABOCOSER), the Microinsurance Network and the Munich Re Foundation, was attended by more than 150 participants, representing insurers, brokers, InsurTechs, development organisations and consultants.
In fourteen sessions, four training courses and several networking events, participants exchanged experiences and discussed themes and topics related to inclusive insurance in the region, such as strategies for driving industry success, technological solutions for improving efficiency, climate change solutions at micro, meso and macro levels, and education programmes to support the development of an insurance culture. The inspiring event, in addition to bringing a lot of innovation, provided participants with new perspectives on segments that are generally excluded and underserved by insurance services.
Regina Simões, A2ii regional coordinator for Latin America, participated as a speaker in the panel "Relationship between regulation and success in inclusive insurance". Together with Nicolas Morales and Sara Orozco (MiN), she also moderated two training sessions on "Practical elements in public-private partnerships".
The event coincided with the launch of the “Journey to Inclusive Insurance in Bolivia” case study by A2ii, on the work of the APS team towards the approval of the Inclusive Insurance Regulation, from its participation in the A2ii-Toronto Centre Inclusive Insurance Training in 2019 until its publication in 2022. Since its adoption, there has been a gradual but encouraging expansion of the Bolivian insurance market, especially health products.
Global Partnership for Financial Inclusion Second Plenary Meeting | 1-3 July, Fortaleza, Ceará, Brazil
The GPFI's Second Plenary meeting was hosted by the Brazilian Presidency in Fortaleza, Ceará, Brazil, on 1-3 July. Welcoming remarks were provided by the Governor of the State of Ceará, Mr. Elmano de Freitas.
Among the highlights of the plenary meeting was the presentation of the draft Policy Note on Defining and Measuring Financial Well-Being, by the Subcommittee Co-Leads with the support of Implementing Partners (OECD, CGAP, UNSGSA), followed by a productive roundtable discussion. Regina Simoes, A2ii's Regional Coordinator for Latin America, welcomed the proposed working definition of financial well-being, as well as the proposed structure for the document. She also welcomed the numerous references to insurance services, as well as the mention of the IAIS’s paper on Takaful insurance, thus incorporating religious beliefs among the individual factors that may be associated with financial well-being, as they can be expected to influence how people take financial decisions.
Also on the agenda:
The proposal for the New G20 Action Plan for MSME Financing,
The draft report of the Guidance Note on Policy Options to Improve Last Mile Access and Quality Inclusion through Digital Infrastructure, including digital public infrastructure (DPI), Consumer Protection and other FIAP Objectives.
The Global Principles for Open Finance Initiative, by CGAP
The topic of remittances came up with the presentation of the report on “Promoting financial inclusion through digitalisation of remittances”, by IFAD.
The G20 plenary meetings were followed by the "Responsible Finance Forum", which began with a field trip to Banco Palmas, a community bank which became a national model of social and financial inclusion in marginalised communities. During the event, trend topics for financial inclusion were addressed, such as Digital Public Infrastructure (DPI), Data Sharing, AI, and Regulation in Responsible Finance.
AITRI Regional Workshop on Supervisory Implications of IFRS 17, Insurance Contracts | 16-19 July, Kuala Lumpur, Malaysia
A2ii, in cooperation with the ASEAN Insurance Training and Research Institute (AITRI), and with the support of Bank Negara Malaysia (BNM), recently conducted the AITRI Regional Workshop on Supervisory Implications of IFRS 17, Insurance Contracts. This took place on 16-19 July 2024 at the Sasana Kijang in Kuala Lumpur, Malaysia. The 4-day in person training aimed to provide participants with the knowledge and better understanding in the implementation of the reporting standard which provides a more uniform and transparent basis for the recognition, measurement, presentation, and disclosure of insurance contracts.
A total of 30 junior to middle level officials from Asian and Pacific Island insurance supervisory authorities took part in the training. Mr. Paul Low, the Chief Executive Officer of AITRI and Ms. Lau Chin Ching, Director of the Financial Development and Innovation of BNM, delivered the Welcome and Opening Remarks. Both Mr. Low and Director Ching stressed the importance of IFRS 17 which already has a profound impact in regulatory frameworks and global financial reporting practices.
The training featured three highly experienced speakers who shared expertise with the participants through a combination of lectures and interactive activities. The speakers were Ms. Michelle Chong Tai-Bell, an independent and short-term consultant with the IMF; Ms. Joanne Law, a Fellow of both the Institute of Actuaries in the UK and the Actuarial Society of Malaysia, and Ms. Low Chiew San, Head of Actuarial Statutory Valuation of Etiqa Life Insurance Berhad in Kuala Lumpur. Among the key topics tackled during the training were:
Background, Objectives, and Design Features of IFRS 17
Presentation and Disclosure Requirements of IFRS (IAS 1, IAS 34, and IFRS 17)
Real World Challenges
Benefits of Aligning Regulatory Reporting and Prudential/Capital Framework with IFRS 17/IFRS 9
Risk Based Capital Design Using IFRS 17 as the Liability Basis
Adapting Supervisory Processes for IFRS 17 – Project Planning and Management
Global Shield Costa Rica Workshop | 9-10 July
On 9 and 10 July, Costa Rica’s Ministry of Finance and the insurance regulator Superintendencia General de Seguros (SUGESE) hosted a multi-stakeholder workshop. The primary aim of this workshop was to identify the most pressing financial needs arising from the increasing frequency and severity of climate-related shocks.
During this event, Matthias Range, Executive Director of the Access to Insurance Initiative (A2ii) introduced its initiative to support SUGESE within the framework of the Global Shield against Climate Risks. This intervention will involve a comprehensive assessment of the existing regulatory and supervisory frameworks relating to Climate Risk Insurance. Additionally, the A2ii will support SUGESE with capacity building and enhancing awareness among key stakeholders where needed.
Presentation for Central Bank of Gambia on index insurance and inclusive insurance
On 28 June, the Access to Insurance Initiative (A2ii) held a presentation on guidelines for Micro and Index Insurance during the meeting of validation of draft index and micro-insurance guidelines.
During this event, participants engaged in reviews and provided comments on the two proposed regulations. The objective of this effort was to refine the guidelines, to ensure that they can later be effectively implemented in the jurisdiction’s regulatory frameworks.
Financial Inclusion Forum (FIF) Plenary Meeting | 22-23 July, Frankfurt, Germany
Climate risk and sustainable development
Insurance and sustainable development: building societal resilience
Public-private partnerships (PPPs) and the viability and value of inclusive Insurance
Global protection gaps beyond NatCat
In an interactive Tour de Table, FIF members specifically shared supervisory initiatives in their jurisdiction aimed at enhancing climate risk awareness and climate risk insurance literacy, measures to incentivise insurers to integrate risk prevention in their product design and underwriting and pricing practices, and supervisory actions to facilitate the development of new and innovative need-based insurance coverages for climate risk.
FIF members were also invited to the official opening of the A2ii Inclusive Insurance Innovation Lab (iii-lab) international incubator event on 23 July, where they heard about the lab over the years and impact stories from lab alumni.
Staff Updates
We welcome Kitti Fodor to A2ii
Kitti joined A2ii in July 2024, and she is supporting the work of the Climate Portfolio, the online and in-person events of the iii-lab, as well as she assists activities related to communications. She is a Master's student in International Development at Sciences Po, Paris, with a focus on environmental issues and sustainability. Prior to joining A2ii, Kitti has gained experience in the field of inclusive, climate- & biodiversity-positive financing of rural and vulnerable populations, hence her commitment to climate resilience and inclusion. She speaks English, Spanish, French and Hungarian.
FeMa Meter Tool
Globally, women constitute the majority of the uninsured population and are underrepresented in insurance policymaking and supervision, which exacerbates their access challenges. To address these issues, A2ii launched the FeMa-Meter on 8 March.
This toolkit collects and reviews sex-disaggregated data to analyse gender differences in insurance indicators. Piloted in Argentina, Lesotho, Pakistan, and Zambia, it has proven to be an effective tool for collecting sex-disaggregated data.
With an intuitive interface, users can input data and generate insights swiftly. To access the FeMa-Meter, visit its dedicated website and its accompanying training module. Join us in advancing gender equality and improving insurance access through data-driven approaches.
Blog
How to insure unqualified or uninterested customers? Ask insurance supervisors in Belize and Ghana
In the recent annual event bringing together alumni from Women’s World Banking’s Leadership and Diversity Program for Regulators (LDR), forward-thinking government institutions shared how they are approaching inclusive insurance. The session was sponsored and co-hosted by the Centre of Excellence on Gender-Smart Solutions, an initiative under the Global Shield against Climate Risks, and Access to Insurance Initiative (A2ii).
LDR provides a platform for its various cohort participants to share their experience and knowledge to compare and assess commonalities in their challenges and solutions for women’s financial inclusion. Amongst the attendees, the Office of the Supervisor of Insurance and Private Pension, Belize, and the National Insurance Commission, Ghana, are thinking differently about insurance for low-income and unqualified customers. Both institutions also participated in LDR in 2019.
Here are some key takeaways from the event:
Belize: The Office of the Supervisor of Insurance and Private Pension developed a policy to bring insurance to traditionally "uninsurable" groups, like farmers and fishers, and they're focusing on financial literacy to make sure people understand the risks and how insurance can help. Microinsurance is also included in their new Insurance Act.
Ghana: The National Insurance Commission has successfully implemented a policy to increase financial capability among low-income populations of Ghana. Along with the insurance sector, they are working on relevant products for micro and small businesses, especially those owned by women. They use "micro-insurance clinics" to build capacity and gather data. Strong stakeholder engagement (including insurers, technical service providers, and mobile money providers) has been key to their success.
If you are interested to learn more about the outcomes of the event, we invite you to read the full blog on our website.
Index Insurance Insights
Learn about index insurance in our free training and obtain the A2ii-UNCDF Certificate on Index Insurance for Supervisors. Exclusively designed for insurance supervisors, this certification offers comprehensive insights into index insurance mechanisms. Ready to take the next step? Enrol now on A2ii’s learning platform, Connect.A2ii.
For all other stakeholders not in supervisory roles, access our open version of the training on our website.
Insurance Core Principles Self-Assessment Tool
Have you tried the SAT tool yet? The Insurance Core Principles Self-Assessment Tool is a joint initiative of the IAIS and the A2ii designed to facilitate the assessment of the level of observance of the ICPs. Leveraging the analytical framework of the Peer Review Process, it empowers supervisors to evaluate adherence to these essential principles.
How it works:
Supervisors can access the tool through the dedicated platform. Once on the platform, they can navigate through a series of questionnaires tailored to each ICP.
The questionnaires are crafted to cover various aspects of each principle, providing a comprehensive evaluation framework. Supervisors can respond to these questions based on their assessment of their jurisdiction’s practices and policies.
Upon completing a questionnaire, supervisors receive immediate feedback. These results offer insights into the level of observance of the assessed ICP, enabling supervisors to identify strengths, weaknesses, and areas for improvement.
We encourage all supervisors to explore this resource and its potential to drive positive change within the insurance landscape.
Trainings
Self-directed training
Supervision of climate-related risks in the insurance sector
Applying a gender lens to inclusive insurance
How to conduct a rapid gender diversity assessment
Index Insurance Training for All Stakeholders
Are you an insurance supervisor? Then join Connect.A2ii - our learning platform restricted to supervisors offering free and certified courses and an opportunity to learn from peers.
Useful Tools on Our Website
Inclusive Insurance Regulations Map
The interactive map incorporates data about existing inclusive insurance 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).
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.
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.
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