A2ii Newsletter

Access to Insurance Initiative Newsletter 02/2018

Welcome to our monthly newsletter, where we update you on the work of the Initiative, inform you about events and publications, and share experiences and learning on inclusive insurance regulation and supervision across jurisdictions. Follow us on Twitter @A2ii_org where we serve you news and updates on #inclusiveinsurance.

 

Recent Events

 

A2ii-IAIS Regional Meeting for Insurance Supervisors in Sub-Saharan Africa  

30-31 January 2018, Pretoria, South Africa

Thirty-one delegates from twenty insurance supervisory authorities across Sub-Saharan Africa attended the meeting, including representatives from the sub-regional committees for East Africa, Southern Africa and French-speaking West and Central Africa.

The main focus of the meeting was to give feedback on the capacity building needs and priorities as set out in the IAIS-A2ii Implementation Plan developed in 2017 and therefore set the agenda for the A2ii-IAIS activities in Sub Saharan Africa in 2018 and 2019.

Participants reported on recent developments in insurance supervision in their countries and shared experiences around the supervision of intermediaries and analysis of claims and expense ratios. Insurance supervisors welcomed the opportunity to share experiences and learn from other authorities in the region. The importance of access to good data on inclusive insurance and the feasibility of collecting data for products aimed specifically at low-income consumers was also discussed.

Jonathan Dixon, the Secretary-General of the IAIS gave an overview of the IAIS standard-setting activities and importance of supporting the implementation of Insurance the Core Principles and enhanced cooperation among supervisors. The focus on emerging risks including FinTech, cyber and sustainability and climate change risks were also discussed.

Hannah Grant, Head of the Secretariat of the A2ii, gave an update on the activities of the A2i supporting insurance supervision as well as recent publications and upcoming A2ii events.

The Association of African Insurance Supervisory Authorities (AAISA) meeting was held on 1 February 2018 alongside the IAIS-A2ii Regional Meeting. This meeting focused on AAISA membership, the strategy and workplan for the organisation over the next year. 

The meeting was jointly organised by the Access to Insurance Initiative and the International Association of Insurance Supervisors and was hosted by the South African Financial Services Board. 

 

IAIS – A2ii Consultation Call on index insurance

25 January 2018

On Thursday, 25 January the IAIS and A2ii organised their most recent bi-monthly consultation call, which is a webinar that offers in-depth insight into particular topics, paired with concrete examples from supervisors, and the opportunity to have a dialogue on the issues. This consultation call explored index-based insurance, with presentations by both Craig Thorburn, World Bank, Chair of the IAIS drafting group on index-based insurance Richard Carpenter author of the recent A2ii paper examining regulatory challenges of index-based insurance and Peter Wrede, World Bank and technical expert on the topic. The Kenyan Insurance Regulatory Authority (IRA) and the Guatemalan Superintendencia de Bancos

(SIB) gave concrete examples from their jurisdictions.

Presentations are already available, and the report of this Consultation Call will soon be available on A2ii.org.

The next A2ii Consultation Call will take place on 22 March and will focus on innovation hubs and sandboxes. Keep an eye on our events page or our Twitter account  @A2ii_org for updates.

 

Upcoming Events

The 12th Consultative Forum on InsurTech: rising to the regulatory challenge

20 March 2018, Colombo, Sri Lanka

 

While the InsurTech revolution undoubtedly offers vast and untapped opportunities, it also embodies a challenge for regulatory frameworks that must now consider new business models, new actors in the insurance value chain, data protection, cybersecurity and consumer education. To meet this challenge, supervisors have to strike a balance between facilitating innovation, increasing the inclusiveness of the insurance sector, and maintaining the conditions for a fair, safe and stable insurance sector for the benefit and protection of policyholders.

The 12th Consultative Forum will focus on how various stakeholders — insurance supervisors and policymakers, private sector insurance, data and technical service providers — can cooperate and align their respective roles to achieve sustainability and scale while ensuring that clients receive fair treatment. The first of a three-part series, this Forum will be followed by two further Consultative Forums on the topic in Africa and Latin America.

To participate in the Consultative Forum, please register here by 12 March 2018, close of business, Central European Time. 

More information including the Invitation and a detailed Agenda here. 

 

 

 

International Dialogue of the Inclusive Insurance Innovation Lab

28 Feb – 2 March 2018, Akosombo, Ghana

For the first time, members from all four participating countries of the Inclusive Insurance Innovation Lab (Albania, Ghana, Kenya and Mongolia) will meet together during a 3-day international dialogue.

The workshop offers a space for mapping and peer exchange on challenges, successes and systemic issues of the inclusive insurance sectors in the participating countries.

Through field visits, dialogues with experts and opportunities for peer learning and joint reflection, participants will gain knowledge from the experiences of different perspectives, sectors and jurisdictions. The International Dialogue will also enable participants to build robust relationships with each other with the intention of working together as an international team over the next year and beyond the duration of the lab.

To find out more about the Lab click here.

 

Recent Publications

 

A2ii publishes Index Insurance: Status and Regulatory Challenges paper

On Wednesday 24 January, the A2ii published a paper on the status and regulatory challenges of index-based insurance (also known as parametric insurance). The paper is a stock-taking exercise which elaborates on a supervisory questionnaire. It identifies a range of possible supervisory concerns and risks which supervisors must be cognisant of when supervising index-based insurance. You can find the A2ii report here.

 

25th IAIS – A2ii Consultation Call on Supporting responsible MSME insurance report

This call identified what the specific insurance needs are of MSMEs, and what regulatory and supervisory factors can stifle or stimulate the market for products targeted at MSMEs. We saw what the global trends are, and looked at case studies to illustrate the principles at work. We also complemented this with first-hand accounts from jurisdictions with experience on the topic. The material on this call will help supervisors and regulators consider whether there are any steps that their authority could take to help stimulate the provision and uptake of good quality MSME insurance.

Presentations from the call along with the English language report are available here.

French and Spanish translations of the report coming shortly.

 

Spanish translations of the Toolkits 1 & 2 and the A2ii Standard Terms of Reference for Country Diagnostics

Toolkit 1 outlines the analytical framework and methodology for conducting a microinsurance country diagnostic study. It is designed to assist readers who wish to gain a deeper understanding of the development of microinsurance markets, as well as researchers, consultants, insurance practitioners, policy-makers regulators and supervisors tasked with the analysis of a national insurance market with a view to developing strategies and recommendations for the growth of microinsurance. To access the Toolkit 1 click here.

Toolkit 2 is intended as a practical tool to guide the reader in unpacking the process of a microinsurance development strategy and the fundamental questions underlying it. It highlights the considerations to take into account, steps, stakeholders, issues that may arise and desired outcomes of a microinsurance development process. Finally, it provides guidance on the core, practical questions faced by stakeholders aiming to promote microinsurance market development.Essentially, it groups these questions into three categories – “why”, “what” and “how”. To access the Toolkit 2 click here.

The A2ii Standards Terms of Reference for Country Diagnostics describes the objectives, scope and approach to be followed undertaking an individual country diagnostic using the methodology developed by the Access to Insurance Initiative (the Initiative).  This document can be used as a basis for developing the Terms of Reference to request proposals by consultants to carry out the diagnostic. To access the document click here. 

 

Knowledge category: 

Access to Insurance Initiative Newsletter 01/2018

Welcome to our monthly newsletter, where we update you on the work of the Initiative, inform you about events and publications, and share experiences and learning on inclusive insurance regulation and supervision across jurisdictions.

We have a new website! Visit us at www.a2ii.org, explore our knowledge hub, check out our upcoming events and ongoing projects and find what you need fast.

 

A taste of things to come: 2018 highlights

In 2018 the A2ii will continue its focus on implementation both at the global level, supporting the work of the IAIS Implementation Committee, as well as on the ground in the regions. Our main regional focus with continue to be Sub-Saharan Africa, Latin America and Asia; however responding to supervisory demand, 2018 will also see us organizing events in the Middle East and North Africa as well as the Central European region.

Following an assessment of supervisory needs, we will continue to provide tailor-made capacity building support at a regional level. This will now include actuarial skills training for supervisors under our new five-year partnership signed in November 2017 between the IAIS, the International Actuarial Association and the A2ii.

Knowledge generation will also remain core to our agenda along with feeding the learnings from our work on the ground back into the development of new IAIS supervisory materials.

Following the launch of our Inclusive Insurance Innovation Lab at the end of last year we will also continue working with the country teams – Albania, Ghana, Kenya and Mongolia - to help them identify innovations in their market which have the potential to help support the growth of their domestic insurance market. Learnings from this exercise will then be disseminated both regionally and globally.

More specifically:

Continued support for IAIS standard setting and implementation work through:

  • Development of an online portal for IAIS ICP self-assessment questionnaires enabling supervisors to get instant feedback on their compliance with individual ICPs;
  • Publication of one proportionality in practice case studies;
  • Participation in IAIS drafting groups under the Financial Inclusion Working Group;
  • Supporting the development of regional implementation plans in Sub-Saharan Africa and Latin America; and
  • Analysing the results of the recently conducted A2II/IAIS Review on Regulation and Supervision supporting Inclusive Insurance Markets. Providing participating regulatory authorities with individual responses as well as releasing an aggregate report.

Facilitate peer dialogue among, regional and global supervisory communities to strengthen understanding of the IAISs ICPs and share best practices on topical inclusive insurance issues:

  • Hosting supervisor only global conference calls (‘Consultation Calls’) every 2 months in English, French and Spanish
  • Support IAIS regional coordinators and local regional supervisory associations in organising regional supervisory break-out meetings

Building and sharing knowledge on InsurTech through facilitating three separate multi-stakeholder dialogue events in Africa, Latin America and Asia respectively through a series of ‘Consultative Forums’ organized on the topic.

Knowledge generation publications on topics including:

  • Index based insurance;
  • Inclusion of insurance in national financial inclusion strategies and
  • Digital financial inclusion

Strengthening the A2iis foundations and long-term sustainability:

  • Adoption of an updated Charter with an updated governance structure; and
  • Start of a new funding term with an improved monitoring and evaluation system to support it.

If you would be interested in more information on our upcoming activities please refer to our website or send an email to the Secretariat at secretariat@a2ii.org

 

Upcoming Events

 

6th IAIS-A2ii Consultation Call on Index-Based Insurance

18 January 2018

On the first call of 2018 we will explore current practices with regards to index-based insurance.  On this call, we are delighted to have experts from the World Bank sharing their expertise on the topic followed by a number of insurance supervisors presenting their country case studies.

For more information, or to register for the call please follow this link.

 

 

IAIS-A2ii Regional Meeting for Sub-Saharan African insurance supervisors

30th and 31st of January 2018, Pretoria, South Africa

 

This meeting is intended to set the agenda for A2ii-IAIS capacity building activities in Sub-Saharan Africa in 2018. The activities that will be presented for discussion at the meeting are taken from the Regional Implementation Plan for the implementation of the IAIS Insurance Core Principles developed in 2017. 

The programme is jointly organised by the Access to Insurance Initiative (A2ii), the International Association of Insurance Supervisors (IAIS) and will be hosted by the Financial Services Board (FSB). A meeting of Association of Africa Insurance Supervisory Authorities (AAISA) will be held along-side the AIS-A2ii Regional Meeting on 1 February 2018.

 

Innovation Lab International workshop

28 February – 2 March 2018, Accra, Ghana

 

The four country teams participating in the Inclusive Insurance Innovation Lab (Lab) will come together for what promises to be a highly interactive 3-day workshop. The workshop will provide participants with an opportunity to learn from their international peers while also gaining closer insights into their own domestic insurance markets. This workshop is the second of five workshops which are taking place between November 2017 and November 2018.

The Lab is a collaboration between the A2ii and the GIZ Global Leadership Academy. It started in November 2017 and will run for a 12 month period. Over this period 4 different multi-stakeholder country teams will first identify barriers to insurance market growth in their country before coming up with innovations to overcome these barriers. For more information please see A2ii website.

 

12th Consultative Forum

InsurTech: rising to the regulatory challenge.

Tuesday 20 March 2018, Colombo, Sri Lanka

The 12th Consultative Forum on microinsurance regulation for insurance supervisory authorities, insurance practitioners and policymakers will address the consequences of rapid technological change in the inclusive insurance sector, exploring how regulators are responding to the need for oversight, consumer protection, stability in the business and financial systems while supporting and encouraging innovation.  

Discussions will focus on how various stakeholders — insurance supervisors and policymakers, private sector insurance, data and technical service providers — can cooperate and align their respective roles to achieve sustainability and scale while ensuring that clients receive fair treatment. The first of a three-part series, this Forum will be followed by two further Consultative Forums on the topic in Africa and Latin America.

The 12th Consultative Forum will take place on Tuesday 20 March in Colombo, Sri Lanka, alongside the Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public Private Dialogue 5 (21-22 March 2018). Approximately 60 high-ranking representatives from insurance supervisory authorities, the industry and the public sector are expected to attend the event.

For more information, please see A2ii website.

 

 

Knowledge category: 

Access to Insurance Initiative Holidays' Edition Newsletter 12/2017

Welcome to the holidays' edition of our monthly Newsletter featuring a look back at 2017. Read about the most popular a2ii.org content of 2017; find out what the A2ii Secretariat highlight as recommended reads from across the web and which of our activities generated massive social media engagement over the past 12 months and why. Also, see what we have cooking for 2018. Read on! 

 

What You Were Reading to Stay on Top of the Game 

Here are 5 of the most popular reads on a2ii.org ranging from Consultation Calls reports to A2ii Thematic Reports to the A2ii Newsletter: 

1. A2ii-IAIS Consultation Calls

Consultation Calls are supervisors-only space for the exchange of knowledge and experiences. Six Consultation Calls took place in 2017 and here are the reports on ReinsuranceMeasuring insurance development: beyond the insurance penetration rateThe importance of insurance regulation in disaster resilienceProportionate approaches to disclosure of informationSupervising InsurTech, and Supporting responsible MSME insurance.

2. Thematic Reports including:

Regulatory Impact Assessments: Microinsurance Regulations in Peru and the Philippines
Proportionality in practice: Distribution
Proportionality in practice: Disclosure of Information
Regulating Mobile Insurance: Status and Regulatory Challenges

3. A2ii Toolkits, which provide supervisors with the required skills and knowledge for effective implementation of the ICPs remain high on our most popular reads list.

4. Next on the 2017 most-read list is the A2ii Newsletter where we update you on a monthly basis on our past and upcoming activities, publications and events.

5. A2ii Events – a list of all our upcoming events and a look back at our past events. Watch this page in 2018!

 

What We’re Reading


It is the time of sharing hence we would like to share with you a few blogs and some publications series from across the web from the A2ii reading list. For 2018, we recommend that you keep an eye on:

The Center for Financial Regulation and Inclusion (CENFRI) publications and blog;

Swiss Re’s Sigma series;

CGAP blog; and

ILO’s Impact Insurance Facility’s Emerging Insights;

 

Social Media Highlight

Among the A2ii events throughout 2017, our Trends and Supervisory Approaches Panel that took place alongside the 13th Microinsurance Conference in Lima, Peru generated most buzz on Twitter.

In the event report entitled What does the Fourth Industrial Revolution hold for Insurance we provide a recap of the discussions.

Follow us on Twitter @A2ii_org 

 

 

Upcoming Events

26th IAIS-A2ii Consultation Call on Index Based Insurance

25 January 2018

On the first call of 2018, we will explore current practices with regards to index based insurance. Keep an eye on our events page to learn more about this supervisor only call.

 

IAIS-A2ii Regional Meeting for Sub-Saharan African insurance supervisors

30th and 31st of January 2018, Pretoria, South Africa

This meeting is intended to set the agenda for A2ii-IAIS capacity building activities in Sub-Saharan Africa in 2018. The activities that will be presented for discussion at the meeting are taken from the Regional Implementation Plan for the implementation of the IAIS Insurance Core Principles developed in 2017. 

The programme is jointly organised by the Access to Insurance Initiative (A2ii), the International Association of Insurance Supervisors (IAIS) and will be hosted by the Financial Services Board (FSB). A meeting of Association of Africa Insurance Supervisory Authorities (AAISA) will be held along-side the AIS-A2ii Regional Meeting on 1 February 2018.

 

The Secretariat of the A2ii wishes you happy holidays and a successful start of the New Year! 

Knowledge category: 

Access to Insurance Initiative Newsletter 11/2017

Welcome to our monthly newsletter, where we update you on the work of the Initiative, inform you about events and publications, and share experiences and learning on inclusive insurance regulation and supervision across jurisdictions.

We have a new look! Visit us at www.a2ii.org, explore our knowledge hub, check out our upcoming events and ongoing projects and find what you need fast. 

 

Recent Events

 

11th Consultative Forum on Scaling up insurance as a disaster resilience strategy for smallholder farmers in Latin America

6 November, Lima, Peru

 

This year’s third and last Forum on this subject gathered over 60 high ranking representatives of the insurance industry, regulatory and supervisory bodies coming from 22 different countries. 

The underlying objective of the Forum was to foster sound policymaking for the development and scaling up of agricultural insurance across the region. The panellists focused on different roles and levels of intervention among the industry, the supevisors and the aggregators and the importance of open communication and strong collaboration between them.

The following key messages emerged from the discussion:

  • Open dialogue and cooperation among all stakeholders is vital’;
  • A multi-stakeholder approach is essential for achievement of scale;
  • Governments’ role needs to extend beyond mere payment of premiums and support the creation of a conducive ecosystem for insurance, including things such as:
  • provision of public goods such as data and information systems;
  • support for research and development; and
  • education and capacity building for the farmers, distributors and insurers.
  • Public Private Partnerships are an important strategy for developing affordable and sustainable agricultural insurance products;
  • The support of the insurance supervisor and of government policies is essential;
  • Technology can play a very important role in driving innovations in product development (e.g. use of satellites and scientific agencies) and facilitating improvements in premium and claims payment processes;
  • More promotion of financial literacy programmes creating customer awareness and understanding of agricultural insurance and particular products is needed;
  • Ongoing monitoring of the results is vital.

Here you can watch a 3-minute video featuring the panellists’ key messages.

For the recording of the entire event click here. 

The event was co-organised by the Microinsurance Network, the A2ii and the IAIS and was held alongside the 13th International Microinsurance Conference co-organised by the Munich Re Foundation and the Microinsurance Network, and hosted by the APESEG.

 

 

A2ii hosts panel on digital technologies and supervisory approaches at the 13th International Microinsurance Conference

8  November, Lima, Peru

 

How to regulate in order to foster responsible innovation for market development?


Creating flexibility in regulation in order to facilitate innovation is key and it is necessary for the supervisors to strike a balance between facilitating innovation, increasing inclusiveness and protecting policyholder. Stefanie Zinsmeyer of the A2ii facilitated the panel and set the framework for what was to come:

The Fourth Industrial Revolution, or the Digital Revolution is here with its challenges and opportunities. It is largely expected to drive economic growth with increased efficiency and productivity. However, it is expected that innovation and new technologies will disrupt existing industry value chains. Carlos Belloni, former COO of Zurich for Latin America, spoke about possible ways that the fourth industrial revolution will disrupt the insurance industry questioning whether the industry and the regulators were ready for this.

 

Denise Garcia of Mexico’s supervisory authority CNSF, shared the insights from the IAIS report on FinTech developments in the insurance industry. Although the working group did not yet conclude which trend will materialize, they concluded that regulatory oversight will become more difficult.

Other topics included:

  • The support that IAIS offers to supervisors and on the draft Application paper on digital technologies in inclusive insurance delivered by Peter van den Broeke from the IAIS Secretariat,
  • Ghanaian experience with Mobile Insurance and their recently issued mobile insurance regulation by Kofi Andoh from Ghana’s supervisory authority National Insurance Commission,
  • Phiwa Nkambule from Riovic, an InsurTech start-up from South Africa presented their flexible microinsurance for South Africans at 50c a day targeting millennials along with the regulatory challenges they faced.

Greater availability of big data and new data analytics hold a vast potential for improvements in product design and the development of better-tailored products and servicing of customers. Supervisors have to strike a balance between facilitating innovation, increasing the inclusiveness of the insurance sector, and maintaining the conditions for a fair, safe and stable insurance sector for the benefit and protection of policyholders.

More insights from the panel as well as presentations can be found here.

 

Association of South East Asian Nations (ASEAN) Insurance Regulators Meeting

22 November, Vientiane, Laos

The A2ii presented on the work and support services provided by the A2ii to this regulators only meeting of ASEAN Insurance Regulators.  It is the first time that the A2ii has been invited to directly engage with this forum. The occasion provided a good opportunity for the A2ii to further strengthen its contacts in the region as well as explore opportunities for future collaboration with the ASEAN Secretariat. Supervisors as well as ASEAN Secretariat welcomed the presentation made by the A2ii and s the opportunity to work together more closely in the future. 

 

 

First national workshops for the Inclusive Insurance Innovation Lab

27 November 2017

 

The kickoff workshops for the Inclusive Insurance Innovation Lab took place in the four participating countries (Kenya, Ghana, Mongolia and Albania) over the past three weeks. In each of these countries, the country teams consisting of the insurance supervisor as well as 6-7 other key stakeholders of the inclusive insurance sector (representing the supply- and demand-side, as well as intermediaries) came together in a two-day workshop to better understand the lab methodology, grow together as a country team and to start discussing priority areas for innovation and learning. At each workshop, country team members committed to specific actions that they will undertake in the run up to the first international workshop in February, during which all country teams will come together for the first time.

 

 

 

 

 

 

ASSAL Capacity Building Regional Seminar for Latina American Insurance Supervisors

29 November – 1 December, Montevideo, Uruguay

The event brought together supervisors from Argentina, Paraguay, Chile, El Salvador, Guatemala, Panama, Peru, Mexico, Uruguay and Rhode Island, and Latin American industry representatives. The A2ii participated in the event and organised a meeting with supervisors alongside to discuss a long-term joint work plan in Latin America.

 

25th Consultation Call on ‘Supporting responsible MSME insurance’

16 November 2017

Micro, small and medium enterprises (MSMEs) make up the vast majority of enterprises and make a significant contribution to employment and economic growth. However, especially for micro and small businesses, insurance products suited to their specific demands often do not exist. For both social and economic reasons, it is in policymakers’ and supervisors’ interest to scale up the provision of appropriate and responsible insurance products amongst MSMEs. This means that it is important to better explore these segments to find out and understand their characteristic requirements, which blend personal insurance and business insurance products. 

This call identified what the specific insurance needs are of MSMEs, and what regulatory and supervisory factors can stifle or stimulate the market for products targeted at MSMEs. We saw what the global trends are, and looked at case studies to illustrate the principles at work. We also complemented this with first-hand accounts from jurisdictions with experience on the topic. The material on this call will help supervisors and regulators consider whether there are any steps that their authority could take to help stimulate the provision and uptake of good quality MSME insurance.

The presentations used can be found on the A2ii website here, and the written report of the consultation call will be published shortly.

 

Upcoming events

 

26th IAIS-A2ii Consultation Call on Index Based Insurance

18 January 2018

On the first call of 2018 we will explore current practices with regards to index based insurance. Keep an eye on our events page to learn more about the call. 

 

IAIS-A2ii Regional Meeting for Sub-Saharan African insurance supervisors

30th and 31st of January 2018, Pretoria, South Africa

 

This meeting is intended to set the agenda for A2ii-IAIS capacity building activities in Sub-Saharan Africa in 2018. The activities that will be presented for discussion at the meeting are taken from the Regional Implementation Plan for the implementation of the IAIS Insurance Core Principles developed in 2017. 

The programme is jointly organised by the Access to Insurance Initiative (A2ii), the International Association of Insurance Supervisors (IAIS) and will be hosted by the Financial Services Board (FSB). A meeting of Association of Africa Insurance Supervisory Authorities (AAISA) will be held along-side the AIS-A2ii Regional Meeting on 1 February 2018.

 

Recent Publications

24th A2ii-IAIS Consultation Call Report on ‘Supervising InsurTech

 

Announcements

Staffing Update

The A2ii Secretariat warmly welcomes Ms Maria Döll as our new Office Manager.  Before joining the A2ii, Maria worked in the private sector for different international companies, mainly in the area of international sales and project assistance. Maria will be responsible for administrative and back-office procedures.

Knowledge category: 

Access to Insurance Initiative Newsletter 10/2017

Welcome to our monthly newsletter, where we update you on the work of the Initiative, inform you about events and publications, and share experiences and learning on inclusive insurance regulation and supervision across jurisdictions.

Visit us at www.a2ii.org.

 

A2ii welcomes new Chair and Governing Council members

The A2ii is delighted to announce Peter Braumüller as the new Chair of its Governing Council and Executive Committee. This follows Jonathan Dixon, the A2iis former Chair’s, departure from the South African Financial Services Board to take up a new position as Secretary General of the IAIS. Peter Braumüller, is the Managing Director, Insurance and Pensions Supervision at the Austrian Supervisory Authority, and brings with him a passion for greater access to insurance and a wealth of experience in senior positions including serving for six years as IAIS Executive Committee Chair. 

We are also delighted to announce three new members of our Governing Council - Mr Ibrahim Kaddunabbi Lubega from the Ugandan Insurance Regulatory Authority, Ms Li Tang from the Chinese Insurance and Regulatory Commission (CIRC) who is also vice-chair of the IAIS’s Implementation Committee and Mr José Gerardo López Hoyo from the Insurance and Surety National Commission of Mexico (CNSF). Along with each bringing considerable expertise, we are also delighted by the breadth of their geographical representation.

 

Recent Events

 

IAIS-A2ii Peer Learning Workshop on Risk-based Solvency and the Use of Early Warning Indicators to Identify Emerging Solvency Risks

16 October, Windhoek, Namibia

This peer learning workshop gave participants an opportunity to share their experiences in assessing and monitoring solvency using a risk-based approach. Case studies were provided by representatives from the National Insurance Commission in Ghana and the Financial Services Board of South Africa. This was followed by a Tour de Table where participants from other supervisors shared their experiences in moving to more risk-based approach in assessing and monitoring the solvency of the insurers in their countries. Supervisors shared:

  • Key factors for successful implementation of a more risk-based approach to solvency assessment and monitoring
  • Challenges in implementing solvency requirements and in the monitoring processes
  • The benefits of moving to a more risk-based approach to solvency assessment and monitoring

Examples of possible interventions when  addressing emerging risks at an early stage
Lessons learnt from implementation

Thirteen representatives from insurance supervisors from six countries across Sub-Saharan Africa attended the workshop. The workshop was held along-side the Financial Stability Institute training seminar on risk-based supervisory practices, risk management and governance and was hosted by the Namibia Financial Institutions Supervisory Authority and was organised by the A2ii and supported by the IAIS. 

 

IAIS Drafting Group on Actuarial Services and its draft paper ‘Proportionate Prudential Requirements in Inclusive Insurance Markets’

The A2ii participated in the IAIS drafting group on Actuarial Services in Inclusive Insurance Markets teleconference on 20 October 2017. Possible country case studies to be included in the application paper were discussed. It is planned for these case studies to be included in the next version of the paper to be discussed at the Round Table Discussions in London on 21 and 22 November.

 

Meeting of the G20 Global Partnership for Financial Inclusion (GPFI), Washington DC, 12 October 2017

A2ii participated in the last meeting of the G20 Global Partnership for Financial Inclusion (GPFI) under the German G20 Presidency. A key topic addressed during the meeting was data protection in digital financial services in the light of the G20 High-Level Principles for Digital Financial Inclusion. Members also discussed the financial inclusion of forcibly displaced persons (FDPs). The incoming Argentine Presidency introduced its priorities for 2018 and discussed these with the GPFI members.

A2ii is an Affiliated Member of the GPFI’s Regulation and Standard-Setting Bodies Subgroup. More information on the GPFI is available here.

 

 

A2ii on regulatory panel at 25th FAIR conference

10 October 2017

Manama, Kingdom of Bahrain

The participants at the panel on regulatory affairs at the 25th conference of the Federation of Afro-Asian Insurers & Reinsurers (FAIR) discussed the supervisor’s role in deepening insurance penetration, and how to balance the opportunities and threats associated with innovative technologies.

The panel was moderated by Dr Kai-Uwe Schanz, Member of the Board of Directors of Trust Re and it included the following participants: Mr Hassan Boubrik, Supervisory Authority of Insurance and Social Welfare, Kingdom of Morocco, Mr P.J. Joseph, Insurance Regulatory and Development Authority of India, Ms Grace Mohamed, Namibia Financial Institutions Supervisory Authority, Mr Arup Chatterjee, Principal Financial Sector Specialist, Asian Development Bank, Philippines and Oscar Verlinden,  Advisor with the A2ii.

 

Insurance Development Forum Microinsurance Working Group Seminar, London, October 16th

The A2ii participated in the first meeting of the Insurance Development Forum (IDF) Microinsurance Working Group which was co-chaired by BlueMarble and the International Cooperative and Mutual Insurance Federation (ICMIF).

The seminar provided an opportunity for members to share case studies of efforts underway to cover more low income people against climate change related risks. All these efforts together are intended to contribute to the target set under the German G7 presidency of insuring 400 million more low income people between 2015-2020 covered against climate change risks.

 The A2ii welcomed reference made by both DFID (Department for International Development) and BMZ (German Ministry for Economic Development and Cooperation) on the need for the group to also give its support, and provide space, for discussions on the development of an enabling regulatory environment. It was emphasised that , without an enabling environment new policies to protect individuals and businesses against climate related risks, might not be feasible or even possible in some markets.

 

Global Action Network Meeting (GAN)

17 and 18 October, Geneva Switzerland

On 17 and 18 October, the A2ii participated in an event organized by the Global Action Network (GAN), and hosted by the International Labor Organization (ILO) to discuss the way forward in achieving greater scale and impact with agriculture insurance. About 30 participants took part including academics, researchers, consultants, donor community, development agencies and industry practitioners. Preliminary discussions centred on how assessment tools created under Global Action Network (GAN) can address challenges inherent to agriculture insurance.  The participants expressed the need for research and data collection in support of the development of agriculture insurance.  The transition of schemes out of pilot phase and sustainability of index based insurance were some of the main topics discussed along with the need for continuous improvement in cooperation between government agencies and regulators.

 

Recent Publications

A2ii Annual Report: Empowering Regulators – Developing Communities (in English, Spanish and French)

On 30 October the A2ii published its Annual Report covering the period from October 2016 – September 2017. In the report, the A2ii identifies the key trends that have marked the reporting period: digital financial inclusion, mass distribution channels, insurance as a tool to support disaster recovery relief and the role of insurance in helping countries implement the 2030 Agenda for Sustainable Development.

 

The report is available here

 

 

Regulatory Impact Assessments: Microinsurance Regulations in Peru and the Philippines

The 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 developing inclusive insurance markets by way of a Regulatory Impact Assessment. The Philippines and Peru have been selected as early pioneers of measures to develop microinsurance via supportive policy and regulatory approaches and considering their unique approaches, policy objectives and local market contexts. The Regulatory Impact Assessments and the accompanying Technical note are available at this link.

 

 

Consultation Call Reports:

  • English summary of the 24th consultation call report

On this call, entitiled “Supervising InsurTech” the participants explored emerging technologies and the implications for insurance supervisors, market and consumers.

The report is available here

  • French and Spanish summary of 23rd consultation call report

The A2ii has published the Spanish and French-language versions of its 23rd consultation call on "Proportionate approaches to disclosure of information". This report, entitled "Approche proportionnée de la divulgation d’informations" (FR) / "Enfoques proporicionales para la divulgación de información", is a translation of the English report which was published previously.

All A2ii consultation call reports can be found on the A2ii website.

 

Spanish versions of the Proportionality in Practice: Disclosure of Information and Distribution now available

On 18 October, the A2ii published Spanish translations of the Proportionality in Practice reports on Disclosure of Information and on Distribution, respectively.

Proportionality in practice: Disclosure of information draws on the experiences of Brazil, Pakistan, Peru and El Salvador and examines the practical aspects of disclosure in which supervisors adopt proportionate regulation to encourage the industry to offer inclusive insurance while ensuring consumer protection.

Proportionality in practice: Distribution examines the practical aspects of distribution where insurance supervisors are flexible and adjust certain supervisory requirements to encourage the insurance industry to offer insurance to the underserved or those excluded from insurance services while protecting consumers. It draws on the experience of Ghana, Mexico and the Philippines. 

Knowledge category: 

Access to Insurance Initiative Newsletter 9/2017

Welcome to our monthly newsletter, where we update you on the work of the Initiative, inform you about events and publications, and share experiences and learning on inclusive insurance regulation and supervision across jurisdictions.

Visit us at www.a2ii.org.

 

Recent Events

Inclusive Insurance Training Programme for Supervisors in Sub-Saharan Africa

4-8 September 2017, Dar es Salaam, Tanzania

This training programme exposed insurance supervisors to how sound supervisory principles can be applied in a manner that encourages the development of an inclusive insurance market. The participants learned about the role of the supervisor and prudential and market conduct issues in overseeing inclusive insurance markets.

The training was based on the IAIS Application paper on the regulation and supervision of inclusive insurance markets and IAIS-A2ii Core Curriculum for Insurance Supervisors: Regulation and Supervision Supporting Inclusive Insurance Markets.

Throughout the interactive sessions, the participants shared their experiences in group discussions and activities. Practical examples to supervising inclusive insurance included:

  • Case studies and presentations from Ghana and Tanzania on their experiences in developing a supervisory approach to support inclusive insurance;

  • Supervisory approaches to mobile insurance in Ghana;

  • Index-based agricultural insurance in Kenya.

The participants worked on action plans to tackle specific challenges in supporting inclusive insurance markets in their home countries. These action plans are aimed to ensure that participants put lessons learned during the training into practice upon return home to their supervisory authorities.  

34 representatives from insurance supervisors from 11 countries across Sub-Saharan Africa attended the programme hosted by the Tanzanian Insurance Regulatory Authority (TIRA), and jointly organised by the Toronto Centre and the Access to Insurance Initiative (A2ii) and supported by the International Association of Insurance Supervisors (IAIS). 

 

24th A2ii-IAIS Consultation Call on 'Supervising InsurTech'

21 September 2017

On this call, emerging technologies and how they affect the insurance market, consumers and supervisors were discussed. Stefan Claus, Bank of England, Didier Warzee, ACPR and Denise Garcia, CNSF, Mexico on the English, French and Spanish call, respectively, presented the results of an IAIS stocktaking study on FinTech Developments in the Insurance Industry concluded earlier in the year. 

Emerging technological innovations in the insurance value chain are confronting supervisors with new questions. Consumers’ needs have evolved, distribution channels have digitalised, the Internet of Things is affecting how risk is underwritten and predicted, and Peer-to-Peer technology is set to affect claims management.

All these aspects hold great promise for extending access to insurance for those previously underserved by more traditional business models. However, extending the reach of insurance coverage more widely and the complexity of some of the business models used also presents a number of risks which must be addressed.

On the calls, additional country case studies were provided by UK Financial Conduct Authority and BaFin (German supervisory authority). Fifty-eight insurance supervisors from 25 countries participated.

For the presentations in English, French or Spanish click here.

A report summarising the discussions from all 4 calls will be published later in the year.

 

A2ii hosts a regulatory panel discussion on Micro, Small and Medium Enterpreises

21-22 September 2017, Ulaanbaatar, Mongolia

On 21 September, the A2ii hosted a panel discussion at the two-day Asia Learning Session and Public Private Dialogue (PPD3) for Asian regulators on the topic of Inclusive Insurance for MSMEs (Micro, Small and Medium Enterprises) in Ulaanbaatar, Mongolia. The A2ii panel at this event focused on regulatory aspects that can enable insurance for micro and small enterprises, and was an exchange between participants from Indonesia, the Philippines, and the SECP of Pakistan. 123 attendees were present.

The session focused on ways in which proportionate approaches to regulation can help stimulate insurers to offer products for small businesses, and what kind of framework conditions regulators can set up to unlock the potential of a well-insured entrepreneurial sector. Panellists noted how important it is to have strong inter-institutional cooperation, led from a high level of government, which can align all stakeholders behind a single vision of inclusion. A close, enabling relationship between regulator and industry is also a key to exploring the potential of this market.

The PPD3 meeting was co-organised by the Mutual Exchange Forum on Inclusive Insurance (MEFIN), GIZ RFPI, GIZ Mongolia, and the Financial Regulatory Commission of Mongolia. 

Find out more about the event and access Oscar Verlinden's (@Oscar_A2ii) presentation at the panel by clicking here.

 

IAIS Implementation Committee Meeting

27 September 2017

On September 27th the A2ii participated in the IAIS implementation committee conference call. The committee discussed its draft roadmap for 2018-2019 and an updated draft of the strategic review of the IAIS’s Coordinated Implementation Framework.  The Coordination Framework outlines the IAIS’s strategic approach to implementation and was last published in 2013.

This update does not replace the original version, which endorses a regional approach to implementation and working through partners, but supplements it.

 

Recent Publications

IAIS Application Paper on the Regulation and Supervision of Mutuals, Cooperatives and Community-Based Organisations (MCCOs)

20 September 2017

This paper, published on September 20th, provides guidance to supervisors on how the ICPs can be implemented in a proportionate manner to support the involvement of MCCOs in providing inclusive insurance. The Access to Insurance Initiative (A2ii), as the IAIS´s implementation partner on financial inclusion, was a member of the drafting group.

The paper highlights the dual role that MCCOs can play in an insurance market both as an underwriter of the risk as well as providing administrative, educational and distribution services. The A2iis on the ground experiences working with supervisors as well as a supervisor only WebEx call organised by the A2ii on the topic as part of its Consultation Call series were key inputs to the drafting process. 

To access the Paper click here.

 

Announcements

 

Staffing Update

We are very happy to welcome Mohammed Rieaz Khan as Junior Advisor and Dunja Latinovic as Communications Advisor to our team.

Dunja brings to the A2ii years of experience in communications, film production and media development. She hopes to strengthen the A2ii with innovative communications practices that drive engagement, interaction and dialogue.

Mohammed is on secondment from the Central bank of Fiji for a period of 12 months. As an experienced supervisor with years of supervision experience in the insurance sector, Mohammed hopes to strengthen the A2ii’s knowledge base, as well as build capacity for the Asian region.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Knowledge category: 

Access to Insurance Initiative Newsletter 8/2017

Welcome to our monthly newsletter, where we update insurance regulators and supervisors on the work of the Initiative, inform you about events and publications, and share experiences and learning across jurisdictions.

Visit us at www.a2ii.org.

 

Recent Events

Regional Learning Sessions: Inclusive Insurance Business Models for Africa
29-30 August, Kigali Rwanda

Around 80 representatives from the insurance industry, insurance supervisors and development agencies from Eastern and Southern Africa and further afield gathered in Kigali to share insights on inclusive insurance business models serving low-income market segments in Africa.

The first panel focused on the landscape of microinsurance in Africa where the Munich Re foundation gave an overview of microinsurance in Africa, Access to Finance Rwanda provided insights into the microinsurance market in Rwanda and the A2ii gave an overview of inclusive insurance regulatory frameworks in Sub-Saharan Africa.

The A2ii also moderated a panel on inclusive insurance regulation. On the panel insurance supervisors from Kenya and Zimbabwe shared their experiences around supporting the development of inclusive insurance markets. Cenfri also presented an overview of different regulatory approaches to supporting responsible innovation. The discussion focused on:

  • Different approaches to formalisation of informal insurance providers

  • Supervising life and non-life business and the possibility of issuing composite microinsurance products

  • The challenge of keeping exclusions for microinsurance policies minimal whilst at the same time using exclusions to manage product risks during the product approval process.

  • Going beyond regulatory frameworks to develop tools for the supervision of microinsurance business

  • The role of the supervisor in supporting innovation and developing the market whilst at the same time protecting consumers in the context of mobile insurance when products reach a large number of consumers in a short time but can be quickly withdrawn from the market.

A key message from the learning sessions for insurance supervisors is that supervisors need to create the framework in which the industry operates but they must leave the industry to fill in the rest of the picture.

The learning sessions also covered a number of other topical issues in inclusive insurance including: strategy and business modelling, health insurance, agricultural insurance, using data to gain insights on client value and business viability, distribution and technology, consumer education.

The event was organized and hosted by Access to Finance Rwanda, Munich Re Foundation and Rwanda Insurers Association (ASSAR) with support from ILO’s Impact Insurance Facility, Centre for Financial Regulation and Inclusion (Cenfri) and Financial Sector Deepening Africa (FSDA), Microinsurance Network and Access to Insurance Initiative (A2ii).

IAIS Product Oversight Drafting Group Meeting 
28 and 29 August 2017, Hyderabad, India

The drafting group for the IAIS Application Paper on Product Oversight in Inclusive Insurance met in Hyderabad, India. The working group, including the A2ii who participated remotely, discussed the comments received during the public consultation and proposed resolution of the comments. The revised draft will be shared with the IAIS Financial Inclusion Working Group and Market Conduct Working group. A stakeholder feedback session on the proposed resolution of feedback from the public consultation will also be held before finalising the paper.

FSD Insurance Community of Practice Workshop on InsurTech and Innovation in Developing Insurance Markets
31 August, Kigali Rwanda

The A2ii Regional Coordinator for Sub-Saharan Africa was invited to attend the Financial Sector Deepening (FSD) Africa workshop on insurtech and innovation which was held along-side the learning sessions on inclusive insurance in Kigali, Rwanda coordinated by Cenfri.

This workshop explored how emerging insurtech models can address challenges to developing inclusive insurance markets.  FSD representatives from Kenya, Mozambique, Rwanda, Tanzania, Uganda and Zambia gave input on innovative insurance products that they are supporting in the market. Representatives also shared their needs around research and data gathering to support the development of inclusive insurance their markets. The need for more research around inclusive insurance regulatory frameworks across Africa to support inclusive insurance market development was highlighted.

 

Recent publications

Spanish version of A2ii publication of Proportionate Regulatory Frameworks in Inclusive Insurance

The A2ii has just published a Spanish translation of its milestone publication 'Proportionate Regulatory Frameworks in Inclusive Insurance: Lessons from a Decade of Microinsurance Regulation'. In this publication, the A2ii looks back at what supervisory approaches have been undertaken since the first microinsurance regulations were put in place then, and draws lessons from the past, as well as looks forward and new trends in inclusive insurance markets and supervisory challenges. The Spanish translation can be found here.

23rd Consultation Call Report published

The report summarises the discussion on the 23rd consultation call on "Proportionate approaches to disclosure of information", the report can be found here.. On the 23rd consultation call we examined the practical aspects of proportionate disclosure regulation, which can encourage the industry to offer inclusive insurance while ensuring consumer protection. The call also leveraged the lessons learned from the recent A2ii study, which was commissioned by the IAIS, entitled “Proportionality in practice: Disclosure of information” which can be downloaded for free here.

 

Other News

Countries from Asia, East and West Africa and Eastern Europe to participate in the Inclusive Insurance Innovation Lab

The selection process for countries to participate in the Inclusive Insurance Innovation Lab has come to an end, with Ghana (West Africa), Kenya (East Africa), Mongolia (Asia) and Albania (Eastern Europe) being offered a space in the Lab.

The call for applications generated an overwhelming response from supervisors and all applicants were invited to participate in a selection call. The final composition of the group had to balance a wide variety of factors, including regional diversity and diversity of experience with inclusive insurance. The insurance supervisors of the four selected countries will now be supported in putting together their country teams for the Lab process. These teams will consist of around eight senior insurance stakeholders each. In addition to the insurance supervisors, country teams will include the main supply- and demand-side stakeholders in a country.

The Inclusive Insurance Innovation Lab is scheduled to begin in November. Guided by experienced change facilitators, the four country teams will initially explore what the barriers are to greater inclusive insurance market growth in their countries. In a second step, the teams will develop innovative solutions that can increase the uptake of insurance by vulnerable people and businesses.

For more information on the Inclusive Insurance Innovation Lab, please click here or contact anke.green@a2ii.org.

Knowledge category: 

Access to Insurance Initiative Newsletter 7/2017

Welcome to our monthly newsletter, where we update insurance regulators and supervisors on the work of the Initiative, inform you about events and publications, and share experiences and learning across jurisdictions.

Visit us at www.a2ii.org.
 

A2ii establishes regional hub in Latin America

On 1st July 2017, the A2ii opened a new regional office for Latin America in Rio de Janeiro, Brazil. The office is kindly being hosted by the Brazilian Superintendence of Private Insurance (SUSEP). This Latin American hub is another key milestone in bringing the A2iis regional implementation strategy to life, following on from the success of the A2ii’s first regional hub launched in Sub-Saharan Africa in September 2016. It also responds to requests from supervisors in the Latin American region for increased capacity building support and will enable the A2ii to better tailor the support it provides to regional needs and local market realities. In developing its work plan for the region the A2ii will be working very closely with the IAIS and the ASSAL (Asociación de Supervisores de Seguros de América Latina) thus bringing to life the MOU signed by the three organisations back in 2015.

Ms. Regina Simões, formerly SUSEP and an active member of a number of IAIS working groups, has taken up the position as A2ii regional coordinator and will be based in Rio Janeiro, Brazil.
 

Recent Events

AAISA/ IAIS/A2ii Meeting for Insurance Supervisors in Africa
|26-27 July 2017|


The A2ii’s Sub-Saharan African regional coordinator Janice Angove supported the General Assembly meeting of the Association of Africa Insurance Supervisors (AAISA) in Pretoria, South Africa hosted by The Financial Services Board. Representatives of the secretariat of the AAISA and twenty-three delegates from supervisors across Sub-Saharan Africa participated in this meeting.

The participants discussed the articles in the proposed constitution of the AAISA, the work plan and budget for 2017-2018. The General Assembly adopted the Constitution of the AAISA and the budget for membership fees of the association. The General Assembly also expressed appreciation to the Government of Cameroon for its support in setting up the headquarters of the AAISA in Yaoundé.

The A2ii provided supervisors with an overview of the draft regional implementation plan and in particular the results of its work to identify capacity building needs and priorities. Participants were given an opportunity to give input on the overall objectives of the regional implementation plan and priority themes and topics for capacity building activities for the A2ii in Sub-Saharan Africa in 2018.

Conor Donaldson of the International Association of Insurance Supervisors (IAIS) gave an update on upcoming IAIS papers and assessment and implementation activities, including the upcoming self-assessment review on inclusive insurance. The importance of the involvement of supervisors in Sub-Saharan Africa in the activities supported by the IAIS was emphasised during the discussion as was the continued commitment of the IAIS and A2ii to support supervisors in Sub-Saharan Africa in developing capacity.
 

23rd A2ii-IAIS Consultation Call on "Proportionate approaches to disclosure of information”
|20 July 2017|

Fifty three supervisors from Latin America, Asia Pacific, and African countries participated in the 23rd A2ii-IAIS Consultation Call on Proportionate approaches to disclosure of information held on 20 July 2017. The call examined practical aspects of proportional disclosure regulation and how the goal of an approach which both encourages the industry to offer inclusive insurance whilst protecting the more vulnerable inclusive insurance consumer can be achieved.Furthermore, this topic leveraged the lessons learned from the recent A2ii study, which was commissioned by the IAIS, titled “Proportionality in practice: Disclosure of information”.To download the presentations, please click here and the report will be available on our website soon.
 

Recent Publications

Report of the 22nd A2ii – IAIS Consultation Call “The Importance of Insurance Regulation in Disaster Resilience" is now available in Spanish

The 22nd Consultation Call, held on 18 May 2017, addressed the topic of the importance of insurance regulation in disaster resilience. This report explored key questions around disaster resilience, such as the scale and nature of disaster risk exposure, specific laws and regulations facilitating resilience and existing good practices from various jurisdictions.

The report is available in English and Spanish. The report in French will be available soon.

Videos of the 10th Consultative Forum on Microinsurance Regulation, Uganda is now available in French

The A2ii, African Insurance Organisation, IAIS, and the Microinsurance Network held its 10th Consultative Forum on “Scaling up agricultural index insurance in Africa: Building disaster resilience of smallholder farmers” on 24 -25 May 2017 in Kampala, Uganda.

The videos of the 10th Consultative Forum are available in English and French, please visit A2ii Youtube’s channel for more videos and please subscribe.

Knowledge category: 

Access to Insurance Initiative Newsletter 6/2017

Welcome to our monthly newsletter, where we update insurance regulators and supervisors on the work of the Initiative, inform you about events and publications, and share experiences and learning across jurisdictions.

Visit us at www.a2ii.org.

Recent Events

MiN’s Annual Member meeting
|27-28 June 2017, Luxemburg|

The A2ii’s Anke Green presented an interactive session on the role of insurance supervisors in market development at the Microinsurance Network’s annual June Member Meeting in Luxembourg. During this session, attendees were asked to come up with answers to a number of questions, including what market participants see as the supervisor’s role in market development.

MiN members presented to approximately 70 attendees on the role of inclusive insurance in risk reduction, including several first-hand accounts of local initiatives and their experiences in improving insurance coverage in underserved segments of the population.

More information on the MiN June Member Meeting can be found here.

10th Annual IAIS Global Seminar
|29-30 June 2017, Old Windsor, London|

Around 280 IAIS members and stakeholders came together for this two day event in Old Windsor, London. Panel discussions ranged from systemic risk and International Capital Standards to conduct of business supervision and sustainable insurance.

Hannah Grant, A2ii took part in a panel moderated by Jonathan Dixon, South African FSB discussing the role of insurance supervisors in market development. Following a brief input presentation by the A2ii, panellists from the Bank of England, Financial Stability Institute, MicroEnsure and the Chinese Insurance and Regulatory Commission (CIRC) discussed the important role that insurance supervisors can play in developing their markets. All panellists agreed the insurance supervisor has an important and lead role in market development. However, the type of intervention or support required is heavily dependent on the local market context with supervisors from more developed countries playing an important role in fostering and enabling competition; whereas supervisors from developing and emerging countries instead needing to focus their efforts on encouraging industry to enter the market through enabling market access and building consumer confidence.

More information on IAIS global seminar can be found here and videos of each of the sessions will be available from mid-July.

Selection calls with applicants to the Inclusive Insurance Innovation Lab have started     
The call for application for A2ii’s new capacity-building tool, the Inclusive Insurance Innovation Lab, generated an overwhelming response from supervisors. Applications were received from insurance supervisory authorities in Africa, Asia, Central and Eastern Europe, the Gulf region, Latin America and the Pacific. The A2ii and its partner on this project, the Global Leadership Academy, are in the process of conducting selection calls with all applicants. A final selection will be made before the end of July.

The insurance supervisors of the four selected countries will then be supported in putting together their country teams for the Lab process. These teams will consist of around eight senior insurance stakeholders each. In addition to the insurance supervisors, country teams will include the main supply- and demand-side stakeholders in a country.

The Inclusive Insurance Innovation Lab is scheduled to begin in November. Guided by experienced change facilitators, the four country teams will initially explore what the barriers are to greater inclusive insurance market growth in their countries. In a second step, the teams will develop innovative solutions that can increase the uptake of insurance by vulnerable people and businesses.

For more information on the Inclusive Insurance Innovation Lab, please click here or contact Anke Green: anke.green@a2ii.org.

 

Recent Publications

A2ii releases two reports showing practical examples and lessons on proportionate application of the Insurance Core Principles
The first report “Proportionality in practice: Distribution" draws on the experiences of Ghana, Mexico and the Philippines. It examines the practical aspects in which insurance supervisors are flexible and adjust certain supervisory requirements in order to encourage the insurance industry to offer insurance to the underserved or those excluded from insurance services while protecting consumers.

The second report “Proportionality in practice: Disclosure of information” draws on the experiences of Brazil, Pakistan, Peru and El Salvador. It examines the practical aspects of disclosure in which supervisors adopt proportionate regulation in order to encourage the industry to offer inclusive insurance while ensuring consumer protection.

Download the reports here.

Report of the 22ndA2ii-IAIS Consultation Call “The Importance of Insurance Regulation in Disaster Resilience”
The report from the 22nd Consultation on “The Importance of Insurance Regulation in Disaster Resilience”, which took place on 23 May 2017, is now available in English. The Spanish and French version will be available on our website soon.

Download the report here.

Report of the IAIS-A2ii-CIMA Mobile Insurance Conference
In February 2017, the A2ii in partnership with the Inter-African Conference on Insurance Markets (CIMA) hosted a workshop in Abidjan, Côte d'Ivoire. It was supported by BMZ, DGIS, Financial Sector Deepening Africa (FSD Africa), UK Aid and Munich Re Foundation.

The conference brought together 100 participants from 26 countries across the African continent for two days of intensive discussions on how to overcome barriers and enhance access to insurance for low-income populations through the use of mobile technologies. Representatives from insurance, telecommunications and payment systems regulatory authorities, as well as insurers, mobile network operators, technical service providers and development organisations actively considered the roles, activities, current regulatory provisions and future regulatory needs in mobile insurance, as well as innovation and the use of digital technology more broadly.

Read the conference outcomes in this report here.

Videos of 10th Consultative Forum on Microinsurance Regulation, Uganda
The A2ii, African Insurance Organisation, IAIS, and the Microinsurance Network held its 10th Consultative Forum on “Scaling up agricultural index insurance in Africa: Building disaster resilience of smallholder farmers” on 24 -25 May 2017 in Kampala, Uganda.

The videos of the 10th Consultative Forum are available in English, please visit A2ii Youtube’s channel:
https://www.youtube.com/playlist?list=PLvRCyfN5sW3iReIfKGKVqXwEVGmbzuDqm

Knowledge category: 

Access to Insurance Initiative Newsletter 5/2017

Welcome to our monthly newsletter, where we update insurance regulators and supervisors on the work of the Initiative, inform you about events and publications, and share experiences and learning across jurisdictions.

Visit us at www.a2ii.org.

 

Announcements

A2ii launches the Inclusive Insurance Innovation Lab – Applications now being accepted

Applications are now open for insurance supervisors to apply for participation in the Inclusive Insurance Innovation Lab (‘Lab’). This unique new A2ii capacity building tool has been developed in partnership with the Global Leadership Academy (GLAC). The Lab is a sequence of national and international workshops for insurance supervisors and other key insurance stakeholders in a country. It aims to promote multi-stakeholder collaboration, learning from international peers and the development of innovative solutions that will increase uptake of insurance in participating countries.

The Lab will bring together four country teams from different world regions, consisting of around eight senior insurance stakeholders each. In addition to insurance supervisors, country teams will include the main supply- and demand-side stakeholders in a country.

Guided by experienced change facilitators, the four country teams will initially explore what the barriers are to greater inclusive insurance market growth in a particular country. In a second step, the process will support the country teams to develop innovative solutions that can increase the uptake of insurance by vulnerable people and businesses.

Insurance supervisors will take the lead in applying for the Lab. The deadline for applications is 20 June 2017. Once selected, with support from the A2ii and GLAC, the supervisors will coordinate the selection of the country team.

Interested in finding out more? For more details on the Inclusive Insurance Innovation Lab, please click here or contact anke.green@a2ii.org (Tel: +49 6196 792612).

 

Recent Events

Global Partnership for Financial Inclusion (GPFI) Forum and Plenary

2-4 May 2017, Berlin, Germany

Approximately 250 participants came together to discuss the topic of ‘digital financial inclusion’ at the Global Partnership for Financial Inclusion (GPFI) Forum on May 2nd and 3rd in Berlin. The GPFI, established in 2010, is the G20’s implementation arm on financial inclusion. The meeting was hosted by the German G20 Presidency and welcomed delegates from government authorities, development agencies as well as a number of academics from around the world. The conference explored they key priorities of the German GPFI presidency, namely: Africa, excluded groups (women, youth and forcibly displaced persons), SMEs, de-risking and digital financial inclusion.

The A2ii presented on a panel entitled ‘Balancing Innovation and Risk to Achieve Digital Financial Inclusion – New Business Models, New Risks’. The panel discussed the results of the recent Responsible Finance Forum (see April A2ii newsletter) on data protection challenges of digital financial inclusion and also a draft report on ‘Alternative Data Transforming SME Finance’. As the only representative of the insurance sector on the panel, the A2ii highlighted the more recent growth of InsurTech relative to longer established digital innovations in the banking sector with the majority of inclusive insurance initiatives occurring around mobile insurance. With respect to potential data protection concerns, the A2ii highlighted the risk of financial exclusion arising through the greater availability of data, which could result in more granular risk pooling and thus low income consumers being priced out of the market. Added to this, the potential for data being used to micro-target potential insurance consumers with products only being offered to ‘more profitable’ target groups was also mentioned.

Overall, the key recurring themes of the Forum were the incredible potential of digital financial inclusion, the need to act on this potential now and the need for capacity building for all key stakeholders, particularly supervisors, to ensure these digital innovations happen in a safe and sustainable manner to the benefit of all.

The Forum was then followed by the GPFI Plenary on May 4th. This meeting was restricted to delegates from G20 government authorities, the GPFI, implementing partners and affiliated members such as the A2ii, and welcomed around 60 participants. The considerable amount of progress made under the German GPFI G20 Presidency in such a short period of time was highly commended, with a number of papers including an updated GPFI Financial Inclusion Action Plan tabled for endorsement. Importantly, the Forum also provided an opportunity for the GPFI to exchange with other key G20 work streams, including Sherpas Track, Finance Track and Business 20, thus enabling the GPFI to ensure its work is well coordinated and has a maximum impact on the overall G20 agenda.

 

IAIS Product Oversight Drafting Group Meeting 

15 May 2017, Ljubljana, Slovenia

This IAIS drafting group met to discuss the feedback from other IAIS working groups on their draft applications paper on product oversight. This paper intends to provide guidance to supervisors, regulators and policymakers when considering, designing and implementing regulations and supervisory practices on product oversight in inclusive insurance markets.

It is hoped that the paper should be ready to be publically consulted over the summer. As a member of the drafting group the A2ii has drafted chapter on ‘Use of standardised products and product features’ and ‘Ongoing oversight’ as well as provide a number of case study examples.

 

IAIS Financial Inclusion Working Group (FIWG) Meeting

16 May 2017, Ljubljana, Slovenia

Supervisors at the meeting discussed and compared recent developments in inclusive insurance supervision in their jurisdictions. The draft IAIS Applications Paper on Product Oversight and Digital Financial Inclusion were also discussed. The A2ii updated participants on its recent activities and also those upcoming later in 2017. Initial discussions also took place on the Financial Inclusion Working Group workplan in 2018 with financial consumer education proposed as a potential new topic for the group.

The next meeting of the IAIS Financial Inclusion Working Group will take place in Lima, Peru on November 10th alongside the next Consultative Forum (November 6th) and the Microinsurance Conference (November 7th to 9th).

 

Inclusive Insurance and Microinsurance Conference

17 May 2017, Ljubljana, Slovenia

This Inclusive Insurance and Microinsurance Conference was brought together under the leadership of the Slovenian Insurance Agency with the aim of stimulating discussion on the potential for inclusive insurance in the Central and Eastern Europe and the Transcaucasian (CEET) region. About 100 representatives from supervisory authorities, the industry and others involved in inclusive insurance debated whether the business models and supervisory approaches applied in microinsurance in Africa, Asia and Latin America could help increase the very low insurance penetration rates currently seen across the CEET region.  In particular, the significant uninsured exposure to national catastrophes was cited by a number of speakers as a key area that needed to be addressed.

Peter Braumuller, Austrian Financial Markets Authority and member of A2iis Governing Council in his key note address highlighted the need for all stakeholders to work together in addressing the insurance protection gap in the region. In particular, with reference to natural catastrophes he highlighted the need for policymakers to carefully reflect on the impact of their disaster recovery relief efforts so as not to undermine individuals’ incentives to take out policies and potentially hinder private market growth. 

As part of the introductory panel, the A2ii shared its research on differences in regulatory and supervisory approach taken by supervisors aiming to make their markets more inclusive. Of the 20 countries that have implemented a different approach for microinsurance, with a similar number working on it, it was noted that none are located in the CEET region. However, from the ensuing discussion the general feeling was that low demand, rather than regulatory barriers or affordability is currently the main challenge for increasing insurance penetration in the region. 

For more information on the conference including the presentations, please go to the conference website: http://inclusiveinsurance.eu/

 

IAIS Digital Financial Inclusion Working Group Meeting

18 May 2017, Ljubljana, Slovenia

This IAIS drafting group met to discuss their draft applications paper on digital financial inclusion. This Application Paper intends to provide guidance to supervisors, regulators and policymakers when considering, designing and implementing regulations and supervisory practices in respect of the use of digital technology. At the drafting group meeting final edits were discussed to prepare the paper for internal consultation with relevant IAIS working groups at the end of May.

 

22nd A2ii-IAIS Consultation Call: “The Importance of Insurance Regulation in Disaster Resilience”

18 May 2017

On the 22nd Consultation Call, technical experts stressed the important role insurance can play in enhancing resilience against natural disasters at the (sub) sovereign level. They furthermore stated the need for sound and effective insurance regulation in order to facilitate the deployment of insurance sector capacities including insurance laws and regulations, tax laws and disaster prevention and response policies, among others. In addition, possibilities for coordination between the various stakeholders to develop access to insurance coverage and risk resilience were discussed. In this regard, participants were informed about the establishment of the Insurance Development Forum (IDF) as a platform to exchange knowledge and build cooperation for governments, industries and civil societies to enhance resiliency (and sustainable development).

Representatives from the Moroccan and Mexican supervisory authorities shared their experiences with insurance against natural catastrophes on a sovereign level and the important role regulation plays in this field. In Mexico, for example, a software was developed to calculate the probable maximum losses (PML) from earthquakes and the insurance premium. Based on this information the capital requirements and reserves for catastrophic risks can be calculated. In Morocco, a mechanism to cover the consequences of catastrophic events was established in 2016.

Over the course of 4 calls held in English, French and Spanish, a total of 48 insurance supervisors from 26 countries participated and discussed important questions around the topic, such as why supervisors should consider sub-sovereign and sovereign insurance and what the benefits are compared to insurance on the household level.

The presentations can be found here and a full report summarising the call will be available soon.

 

10th Consultative Forum on ‘Scaling up agricultural index insurance in Africa: building disaster resilience of smallholder farmers’

24-25 May 2017, Kampala, Uganda

During the afternoon of 24 May and the morning of 25 May, over 90 supervisors, insurance industry representatives and other stakeholders from 30 countries across Africa gathered in Kampala Uganda to discuss achieving scale, sustainability and ensuring client value in agricultural insurance for small scale farmers.

The first day saw panellists from the Insurance Regulatory Authority Uganda, Acre Africa and Swiss Re share their experiences around overcoming the challenges in achieving scale, product affordability and managing basis risk for agricultural index insurance. This was then followed by a lively fish bowl discussion on the same topic.

The second day featured a workshop on product design and the product approval process. To help inform the discussions consultant Agrotosh Mookerjee shared his technical expertise from his work in the African and Asian regions helping structure and design agricultural index based products. A case study on product approval was also provided by Joseph Ownor from the Kenyan Insurance Regulatory Authority based on the Kenyan draft index based insurance regulations. It was noted that their product approval guidelines cover both the financial viability and management of basis risk, fair product features and disclosures to customers.

It was evident from the Forum that there is growing interest in agricultural and in particular index insurance in the region; however despite recent innovations there is still a way to go before schemes achieve scale and become sustainable. More also needs to be done to ensure that insurance products better meet the needs of small scale farmers. A number of practical suggestions were made on ways some of these challenges can be overcome including:

  • Establishing public-private partnerships
  • Leveraging off new technologies in both product design and distribution
  • Using trusted distribution channels like agricultural input providers
  • Developing clear policy and regulatory frameworks which permits a broad range of distribution channels including agricultural input providers such as seed suppliers
  • Balancing the objectives of the wide range of stakeholders in the value chain and ensuring that all get ‘value’ from their involvement
  • Bundling insurance with other value added services such as health and life products to meet a wider range of small holder farmers’ needs
  • Integrating insurance with other risk management techniques to increase farmers’ overall resilience
  • Avoiding the use of jargon when explaining products to farmers and instead use language that farmers understand focusing on the ‘output’ or cover provided.

The forum was jointly organised by the African Insurance Organisation (AIO), A2ii, IAIS and Microinsurance Network. All event materials are available on the A2ii website and a conference report will be available in June.

The 10th Consultative Forum took place alongside the 44th Conference of the AIO. The theme of the AIO conference was “Furthering the Financial Inclusion Agenda if African Nations through Insurance” and a number of perspectives on expanding insurance markets and using innovative approaches to reach unserved customers were discussed. Jonathan Dixon, Deputy Executive Officer South African Financial Services Board and Chair of A2iis Governing Council spoke on panel examining regional harmonisation of regulation. The A2ii also attended the Association of African Insurance Supervisory Authorities (AAISA) meeting and gave an update on upcoming IAIS-A2ii activities for Sub-Saharan Africa for 2017.

Participate in our Events!

IAIS Global Seminar

29-30 June 2017, London, United Kingdom

The 10th IAIS annual Global Seminar will take place on 29-30 June in Old Windsor, UK. This two-day event serves as an opportunity for IAIS Members and stakeholders to receive updates and exchange views on IAIS activities and initiatives, as well as discuss global insurance trends. Topics will include ComFrame as a comprehensive framework and structure, an activities-based approach to systemic risk, promoting good conduct of business in insurance distribution, digitalisation in the insurance sector and sustainable insurance, among others. More information on the event can be found here.

23rd A2ii-IAIS Consultation Call

20 July 2017

Our next Consultation Call will be held on 20 July with the topic still to be determined. We are always keen to hear preferred topics from supervisors and encourage you to submit any requests for future calls either to consultation.call@a2ii.org or through our website.

Microinsurance Learning Session

29-30 August 2017, Kigali, Rwanda

At the end of August, the A2ii will co-host a multi-stakeholder Microinsurance Learning Session with the Munich Re Foundation, Access to Finance Rwanda, FSD Africa, Cenfri and the International Labour Organisation in Kigali, Rwanda. More information on how to register for the event will be available on our website soon.

 

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