A2ii Newsletter

Access to Insurance Initiative Newsletter 09/2018

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

Important update: 

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A2ii new funding phase – a time to reflect as well as look forward

On first of July, the A2ii entered a new funding phase which runs until mid-2022. This is the third funding phase of the A2ii and provides us with an opportunity to both look back and reflect on what has been achieved as well as to reflect on our priorities going forward.

The last phase has notably seen us move closer to the International Association of Insurance Supervisors (IAIS). Since July 2015 we have had an office in the IAIS’s offices in Basel and our respective work plans are now developed in close collaboration. We have also taken on a much greater focus on implementation and dissemination activities moving beyond the knowledge generation focus of our first funding phase. This has seen us establishing regional offices in Latin America and Sub-Saharan Africa, strengthening our relationship with regional supervisory associations, and organising many more trainings, dialogue events and supervisory peer learning activities at a regional level on the ground.

The start of our new phase was proceeded by a review and update of our strategy, and as part of this, a careful stocktaking of our activities. The A2iis core mission to inspire and support supervisors to promote inclusive and responsible insurance was confirmed as still valid. However, to more effectively fulfil this mission, the A2ii plans to increase its awareness raising activities with policymakers in recognition that they are often the ones that have the greatest influence on insurance supervisors mandate and resources. The focus on regional implementation will continue and will be complemented by carefully selected national implementation support where it is felt to generate knowledge relevant to other supervisors at a regional or global level. With the A2ii due to celebrate its 10th anniversary next year and the recognition that demand for capacity building support is on-going and long term, time will also be spent looking at the long-term sustainability of both our funding sources and institutional structure.

Most importantly we would like to take this opportunity to thank our funders – German Federal Ministry for Economic Cooperation and Development (BMZ) and The Netherlands’ Ministry of Foreign Affairs (DGIS) – for their continued support and making this all possible. As well as welcome our recent engagement with the UK Department for International Development (DFID) to support the development of supervisory actuarial skills training. 

 

A2ii: updated governance structure
 

In line with the commencement of our new funding phase, we have also updated our Charter. Before doing so, we took stock of our governance structure. Reflecting on how the A2ii has grown and evolved since it was first established and how its relationship with the IAIS has strengthened over this period, our Governing Council set up a working group to develop recommendations based on an external review.

A new Charter has now been adopted that strengthens the Governing Council’s board functions and provides our Executive Committee with more decision-making authority like approving our annual report. The Secretariat of the A2ii receives more autonomy as all operational functions are now formally delegated to the Secretariat. Both, Governing Council and Executive Committee, can now be expanded beyond their current size, clear membership criteria have been defined and more participation of emerging and developing market jurisdictions is explicitly welcome. As was the case in the past, either the Chairperson or Vice Chairperson of the Governing Council shall represent a developing or emerging market jurisdiction.

Our new Charter can be found here. Have a look at our Governing Council and Executive Committee members here.

 

Recent Events

 

A2ii and FSD Africa sign a Memorandum of Understanding on future cooperation in inclusive insurance market development in Sub-Saharan Africa

The Access to Insurance Initiative (A2ii) and the Financial Sector Deepening (FSD) Africa have signed a new framework agreement in the form of a Memorandum of Understanding (MoU) setting out principles and scope for cooperation in supporting inclusive insurance market development in Sub-Saharan Africa.

Peter Braumüller, Chair of the A2ii Governing Council and Mark Napier, Director of the FSD Africa signed the MoU which frames the respective complementary objectives and results’ frameworks of the two organisations to reinforce future cooperation efforts. The exact areas of collaboration and specific joint activities would be determined each year in discussion and subsequently annexed to the MoU.

 FSD Africa is a non-profit company which promotes financial sector development across sub-Saharan Africa (SSA). It works with partners to build financial markets that are robust, efficient and, above all, inclusive. As part of its Inclusive Finance pillar, FSD Africa funds the Risk, Remittances and Integrity (RRI) programme to develop insurance markets, enable payment systems and allow the inclusive integrity of financial systems in Sub-Saharan Africa. 

 

Recent videos

13th Consultative Forum on InsurTech and Mobile Insurance, Ghana - video summary (6 minutes)

When we talk about InsurTech and Mobile Insurance, it is critical that regulators embrace the change and encourage innovation in the insurance industry. However, enabling innovation and at the same time ensuring adequate protection of all stakeholders in the process may come as a challenging task for a regulator. What are the success stories and steps towards a successful change of culture within a regulatory authority? What are the most common challenges and risks affronting the supervisors?    

Take a look at this 6-minute video summarising the key messages and conclusions on the subject of InsurTech and Mobile Insurance from our 13th Consultative Forum that took place in Ghana, earlier this year.

Watch this space for information on the upcoming 14th Consultative Forum on InsurTech that will take place in Buenos Aires, Argentina on 24 October!

 

Upcoming Events

AFI Global Policy Forum

6 September, Sochi, Russia

A2ii’s Anke Green will be presenting on the panel Inclusive Insurance: innovations for integrating inclusive insurance into National Financial Inclusion Strategies.

 

Inclusive Insurance Innovation Lab 3rd National Workshops

4 – 11 September, Albania, Mongolia, Ghana and Kenya

The lab participants are meeting in their respective countries to set out the implementation activities and to draw new stakeholders on board of their projects. For more information about the lab visit the website. 

 

Inclusive Insurance Training Program for Supervisors in Central and Eastern Europe and Transcaucasia

12 - 16 November, Vilnius, Lithuania

 

The Inclusive Insurance Training Programme is jointly organised by the Bank of Lithuania, the Access to Insurance Initiative (A2ii), the International Association of Insurance Supervisors (IAIS) and the Toronto Centre. For more information on the event please follow the link.

If you are a supervisor from the CEET region interested in attending the training, please complete the online registration form

 

IAIS-A2ii Consultation Call on Risk Talk

20 September – webinar

Risk Talk is an interactive community tool that links climate risk experts and stakeholders (including supervisors), developed by the InsuResilience Global Partnership. We will have the experts of the InsuResilience team give an overview of this promising tool for supervisors, and they will be available to answer any questions you may have.

More information on the tool can be found here. To register for the call follow this link.

 

First Impact Insurance Academy

10  - 14 September, Turin, Italy

The ILO's Impact Insurance Facility, the International Training Centre of the ILO and partners including the A2ii are excited to announce the launch of the first Impact Insurance Academy! This is a unique opportunity to learn from a decade of experience of the Facility in inclusive insurance!

The one-week Academy will take place at the International Training Centre of the ILO in Turin, Italy, from September 10 to 14, 2018 and combines plenary discussions with elective workshops, peer-assist sessions, real case studies and networking opportunities to offer you an inspiring and dynamic learning environment.  The A2ii’s Sub-Saharan Africa regional coordinator Janice Angove will be running afternoon breakout sessions on inclusive insurance regulation and supervision.

 

 

Recently Published

 

Ratios and Cost Structures in Insurance Supervision (28th IAIS-A2ii Consultation Call) available in French and English

When licensing and supervising insurance products, supervisors need to make judgments on the soundness, sustainability and ethics of the proposed product. This is particularly the case when products are designed as part of an initiative for increased financial inclusion as the underserved segments often contain economically and socially vulnerable consumers with low familiarity with insurance products. This call explored some of the approaches in evaluating this, the ratios involved (e.g. loss ratio, claims ratio, renewal ratio and others) and a number of concrete examples of what considerations come into play. 

We heard an expert presentation by Clémence Tatin-Jaleran  and Andrea Camargo, and were joined by Michael Sicsic of the UK's Financial Conduct Authority (FCA), who shared the FCA's experience with the set of key reporting ratios they are piloting. Annibal Vasconcellos of the Brazilian supervisor SUSEP also shared his experiences with the monitoring of ratios.

Ratios and Cost Structures in Insurance Supervision Report.

Compte rendu: Ratios et structures de coûts utilisés dans le contrôle de l’assurance.

 

 

 

Knowledge category: 

Access to Insurance Initiative Newsletter 08/2018

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

 

IIS Global Insurance Forum
11 July, Berlin, Germany

From 9 to 11 July 2018 the International Insurance Society (IIS) brought together the leaders of the global insurance community in Berlin. The third day focused on the topic “Insurance for Global Development & Resilience” with the aim to develop a roadmap for the UN Secretary-General’s Climate Summit in September 2019 and the IIS Global Insurance Forum in Singapore, June/July 2019.

Discussions focused on the role and potential of climate and disaster risk finance and insurance to build resilience in developed and developing countries as a contribution to economic and social prosperity. Keynote speakers included Joaquim Levy, Managing Director and World Bank Group Chief Financial Officer, Achim Steiner, Administrator, United Nations Development Programme (UNDP), Denis Duverne, Chairman, AXA & Deputy Co-Chair, IDF and Ingrid Hoven, Director-General Global Issues, German Federal Ministry for Economic Cooperation and Development, Germany (BMZ).

One of the high-level panels that took place on the third day of the Forum was devoted to “Regulatory Reflections on Insurance Development”. In the opening keynote, Jonathan Dixon, IAIS Secretary General, underlined the importance of disaster risk insurance to close the protection gap and the need for more collaboration between regulators, the insurance industry and entities like InsuResilience Global Partnership and the Insurance Development Forum. Stefanie Zinsmeyer of the A2ii Secretariat talked about the important role that insurance supervisors play in providing access to low-income and vulnerable consumers, in creating awareness and maintaining trust and that insurance supervisors should be integrated early on in pilot schemes and dialogues around disaster risk management.

 

 

IAIS Implementation and Assessment Committee Meeting

24 July, Moscow, Russia

During the IAIS Implementation and Assessment Committee meeting, updates were provided on the new IAIS supervisory guidance under development on the topics of cyber risk, governance, climate change risk, actuarial skills in inclusive insurance markets and digital financial inclusion. Also planned improvements to the IAIS’s assessment programme were presented and discussed. Members were informed and encouraged to participate in the upcoming Peer Review Process on ICP 1 and 2 (supervisory mandate and supervisory powers) scheduled for Q3 2018.

Hannah Grant, Head of A2ii Secretariat presented A2ii’s recent activities as well as those coming up later on in 2018.  Updates were also provided by the International Monetary Fund, the World Bank, the Financial Stability Institute and the Sustainable Insurance Forum.

 

National Council of the Financial System Supervision (CONASSIF) meeting

17 July San Jose, Costa Rica

At the CONASSIF meeting, A2ii’s Regina Simoes gave a presentation on inclusive insurance in which she highlighted its importance for the development of the economy in a country like Costa Rica.

The CONASSIF is the highest authority in the financial system in Costa Rica. It is responsible for the standardisation and integration of regulatory and supervisory activities. It will also be responsible for approving the future inclusive insurance regulation once it is finalised. 

 

SUGESE-IAIS-A2ii workshop "Inclusive Insurance - regulatory challenges in face of mass distribution"

18 July San Jose, Costa Rica

The workshop focused on the opportunities and risks involved in the provision of inclusive insurance through mass distribution channels. The event was organised to help inform the development of a new inclusive insurance regulation by the Costa Rican insurance supervisory authority (SUGESE). Key stakeholders from Costa Rica participated in the meeting including  representatives SUGESE, the National Council of the Financial System Supervision (CONASSIF), the telecommunications supervisor (SUTEL), the Attorney General's Office, members of the Judicial Power, representatives of the defense and consumer support bodies, GIZ, industry, brokers and insurance intermediaries (retailers).  

Two round tables took place: one on inclusive insurance business models with a particular focus on mass distribution channels, where A2ii’s Regional Coordinator Regina Simoes presented, and the other on risks and challenges associated with the conduct of business in inclusive insurance. A panel of supervisors presented emerging solutions in Brazil, El Salvador and Guatemala whereas in the interactive group session the discussions focused on measures to mitigate risks and motivate the industry and on challenges in implementation. SUGESE also presented the proposed Rule for regulation of inclusive insurance In Costa Rica.

The workshop was attended by 90 participants.

 

IAIS-A2ii Consultation Call on Supervisory Responses to Fraud

19 July – webinar

On the call, several jurisdictions shared their experience with fraud, and what kind of measures they have put in place to identify and mitigate fraud. These included the Bank of Russia, the Polish supervisory authority (KNF), the Guernsey Financial Services Commission, the Moroccan supervisory authority (ACAPS) and the Brazilian insurance federation (CNseg).

The A2ii will develop a report based on the content of the presentations on the call and will share it on the A2ii website once published. The report will be available in English, French and Spanish.

 

Upcoming Events

 

AFI Global Policy Forum

6 September, Sochi, Russia

A2ii’s Anke Green will be presenting on the panel Inclusive Insurance: innovations for integrating inclusive insurance into National Financial Inclusion Strategies.

 

Inclusive Insurance Innovation Lab 3rd National Workshops

4 – 11 September, Albania, Mongolia, Ghana and Kenya

The lab participants are meeting in their respective countries to agree on their plans for implementation of the ideas developed during the lab process. The meetings will also be used to draw new stakeholders on board to help support the implementation of the projects. For more information about the lab visit the website

 

IAIS-A2ii Consultation Call on Risk Talk

20 September – webinar

Risk Talk is an interactive community tool that links climate risk experts and stakeholders (including supervisors), developed by the InsuResilience Global Partnership. We will have the experts of the InsuResilience team give an overview of this promising tool for supervisors, and they will be available to answer any questions you may have. More information on the tool can be found here. Registrations will launch in the coming weeks.

 

First Impact Insurance Academy

10  - 14 September, Turin, Italy

The ILO's Impact Insurance Facility, the International Training Centre of the ILO and partners including the A2ii are excited to announce the launch of the first Impact Insurance Academy! This is a unique opportunity to learn from a decade of experience of the Facility in inclusive insurance!

The one-week Academy will take place at the International Training Centre of the ILO in Turin, Italy, from September 10 to 14, 2018 and combines plenary discussions with elective workshops, peer-assist sessions, real case studies and networking opportunities to offer you an inspiring and dynamic learning environment.  The A2ii will be running afternoon breakout sessions on inclusive insurance regulation and supervision.

Visit the website to learn more about the Academy and the programme!

 

Inclusive Insurance Training Program for Supervisors in Central and Eastern Europe and Transcaucasia

12 - 16 November 2018, Vilnius, Lithuania

The Inclusive Insurance Training Program is jointly organised by the Bank of Lithuania, the Access to Insurance Initiative (A2ii), the International Association of Insurance Supervisors (IAIS) and the Toronto Centre.  For more information on the event, please follow the link.

If you are a supervisor from the CEET region interested in attending the training, please complete the online REGISTRATION FORM by 11 October 2018

 

Knowledge category: 

Editorial Correction to Access to Insurance Initiative Newsletter 07/2018

Editorial Correction to Access to Insurance Initiative Newsletter 07/2018

 

Please note that a heading under Recent Events section of the A2ii Newsletter from 17 July 2017 incorrectly referred to IAIS Global Insurance Forum. The correct title is IIS Global Insurance Forum. This mistake has been corrected in the online version of our Newsletter.

 

Thank you.

A2ii Secretariat

Access to Insurance Initiative Newsletter 07/2018

Access to Insurance Initiative Newsletter 07/2018

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

 

 

Asian Forum of Insurance Regulators (AFIR)

7 and 8 June 2018, Hong Kong, China

On 7 and 8 June 2018, the 13th Annual Meeting and Conference of the Asian Forum of Insurance Regulators (AFIR) took place in Hong Kong. It was attended by about 50 regulators from 15 jurisdictions in the Asia-Pacific region. For A2ii, Janina Voss presented on inclusive insurance and introduced the work of the Initiative. 

At the meeting, AFIR members elected Mr John Leung, Chief Executive Officer of the Insurance Authority (IA), as the new Chairman, replacing Mr Chen Wenhui, for a term of two years to 2020.

Under the theme “Building an Effective Regulatory Regime in a Changing Landscape”, participants exchanged experiences and perspectives on a number of “hot topics” for Asian supervisors in various panel sessions. With Asia being at the forefront of technological innovation, a great focus of discussions was on Insurtech developments and associated challenges, such as cybersecurity and data protection, but also the opportunities innovation provides

The AFIR meeting was preceded by the Financial Stability Institute's (FSI) Asia-Pacific high-level meeting on insurance supervision on 6 June, jointly organised by AFIR, the FSI, the Insurance Authority of Hong Kong and the IAIS. In the light of fast-growing insurance markets in Asia with, at the same time, penetration rates being still low in many parts of the region, topics discussed included the trade-off between prudential and conduct regulation as well as the great potential for more intensive regional cooperation of regulators in Asia to tackle common challenges and bring the emerging markets’ perspective into international discussions. For more information about this event follow the link.

 

 

 

2018 NAIC International Insurance Forum

14 and 15 May 2018, Washington DC, US

As the Chair of A2ii’s Governing Council, Peter Braumüller represented the A2ii at the 2018 NAIC International Insurance Forum. The Forum was attended by more than 340 participants, many of whom supervisors and industry representatives from the US. On a panel session dealing with the role of insurance in emerging markets, Peter Braumüller emphasized the role of regulation and supervision for improving access to insurance by the so far underserved. He highlighted a number of key challenges and risks in supervising inclusive insurance markets:

“Although these markets may focus on simpler or lower risk products, which might call for lower intensity in supervision, new approaches tend to create new risks in the market, e.g. consumers are less informed about insurance or are new to the insurance business altogether. There is also a great need for innovation in these markets that regulators might want to support. However, if sales in microinsurance go wrong, a large number of policyholders can be affected in their often first experience with insurance, thus damaging trust in the market in the long term.”

 

Supervisory dialogue on the impact of informality on insurance markets – what supervisors can do

17 May 2018, Rio de Janeiro, Brazil

The event provided an overview of how informality may affect insurance markets, examined the risks and focused on the challenges faced by insurance supervisors as a result.
The event also provided a platform for information sharing on the topic with presentations made on the approaches adopted by jurisdictions in different regions to of how best to encourage formalisation and greater financial inclusion.

The IAIS-A2ii Supervisory Dialogue was part of a three‐day series of events co-hosted by SUSEP, the Brazilian insurance supervisory authority and brought together more than 40 supervisors and regulators from 15 jurisdictions.

The report from the event is available here: Supervisory Dialogue Report

For information in Spanish and Portuguese and to view pictures from the event, visit the Supervisory Dialogue page.

 

Inclusive Insurance Innovation Lab - Innovation Incubator meeting

19 – 22 June 2018, Durres, Albania

All four country teams participating in A2ii’s Inclusive Insurance Innovation Lab (Albania, Ghana, Kenya and Mongolia) came together at the final international meeting to advance the ideas and prototypes developed during the last national meetings. During learning journeys to local companies, the participants explored ways to put the customer at the centre of their activities. Feedback from external guests and peer support from lab participants from other countries provided useful insights and helped address some of the challenges in implementing the ideas. Participants also explored ways to continue their collaboration in the future and developed clear plans for implementation.

The Inclusive Insurance Innovation Lab is a capacity-building tool designed to help supervisors grow their markets and combat low insurance penetration rates. It consists of a sequence of national workshops and international platforms for supervisors and other key stakeholders. Find out more about the project at this link. You can follow the iii-lab on Twitter #iiilab and Youtube!

 

The 2018 Annual Conference of the Caribbean Association of Insurance Regulators (CAIR)

20 – 22 June 2018, St. Kitts & Nevis

The topic of the conference, which brought together 56 supervisors from 17 Caribbean countries, was “enhancing domestic and cross-border supervision and stress testing in the insurance sector”.

Teresa Pelanda of the A2ii introduced the topic of inclusive insurance to the participants highlighting the important role supervisors play in enhancing access to insurance. Considering the increased intensity of hurricanes and other major natural catastrophes in the region, participants discussed natural catastrophes insurance from the perspective of inclusive insurance. Elizabeth Smith from FSC Jamaica shared their experiences on implementation of an index-based insurance product for low-income households.

 

 

 

 

 

Inclusive Insurance Training

18 – 22 June, Rabat, Morocco

From 18-22 of June, supervisors from French-speaking Africa came together in Rabat, Morocco for a training programme that went over the fundamentals of supervising inclusive insurance markets. The training was delivered in partnership with the Toronto Centre, the International Association of Insurance Supervisors, and the Moroccan supervisory authority (ACAPS).

Participants welcomed the training with great engagement, with over 15 African countries represented. The training helped participants understand better the importance of adopting a proportionate approach to regulation and supervision in order to improve access to insurance services and ensure adequate protection for low-income consumers. In addition, recent practices and case studies of selected jurisdictions that have advanced the field of microinsurance were presented. Participants exchanged experiences from their own countries and worked together onconcrete next steps in order to advance inclusive insurance markets in their own jurisdictions.

The A2ii, Toronto Centre and IAIS frequently partner to deliver these trainings, with the next one happening in November in Vilnius, Lithuania (more information can be found here).

 

 

 

 

Upcoming Events

 

IAIS-A2ii Consultation Call on Supervisory Responses to Fraud

19 July – webinar

On 19 July the A2ii and IAIS will be hosting their consultation call on “Supervisory Responses to Fraud”. The call will take place in 3 languages, and will be an opportunity to learn from other jurisdictions what kind of measures they have taken to monitor and address fraud. Please register for the supervisors-only consultation call here.

The consultation calls are 1-hour WebEx webinars. The presentations and call reports from previous consultation calls can be found on the A2ii website here.

 

First Impact Insurance Academy

10  - 14 September, Turin, Italy

The ILO's Impact Insurance Facility, the International Training Centre of the ILO and partners including the A2ii are excited to announce the launch of the first Impact Insurance Academy! This is a unique opportunity to learn from a decade of experience of the Facility in inclusive insurance!

The one-week Academy will take place at the International Training Centre of the ILO in Turin, Italy, from September 10 to 14, 2018 and combines plenary discussions with elective workshops, peer-assist sessions, real case studies and networking opportunities to offer you an inspiring and dynamic learning environment.  The A2ii will be running afternoon breakout sessions on inclusive insurance regulation and supervision.

Visit the website to learn more about the Academy, the programme, and how to register! Deadline for registration is 20 July 2018!

Got any questions? Write to impactinsuranceacademy@itcilo.org.

 

Recently published

 

Event report: Supervisory Dialogue on the impact of informality on insurance markets – what supervisors can do

The event hosted by Superintendência de Seguros Privados (SUSEP) took place on 17 May 2018. The report provides an overview on how informality is affecting insurance markets, it examines the risks and challenges faced by insurance supervisors.

 

IAIS Issues Paper on Index Based Insurances, Particularly in Inclusive Insurance Markets

Index-based insurances are increasingly looked to as a means to manage weather and catastrophic event risks, support food security and enhance access to insurance. The IAIS Issues Paper which was published by the IAIS on 18 June, provides background on this product, describes practices and actual examples, identifies related regulatory and supervisory issues and challenges.

As IAIS’ implementation partner on financial inclusion, the A2ii participated in the IAIS drafting group of the Issues paper.  The A2ii’s supervisor only WebEx call organised by the A2ii on the topic as part of its Consultation Call series was a key input to the drafting process.

 

 

NEWSFLASH - Brazil: new legislation to reduce informality in insurance

The Brazilian insurance market, and especially Brazilian consumers and society, took an important step to reduce informality in insurance on Tuesday (May 22) when a Complementary Law Project (PLC 3139/2105) was passed in the special committee of the Congressional Chamber.

The legislation deals with the irregular operation of cooperatives and associations. Following the passing of the Complementary Law Project (PLC), associations and cooperatives will be defined as self-management entities and will pay taxes in the same way as traditional insurance companies. Additionally the PLC provides insurance cooperatives and self-management entities a possibility to seek reinsurance coverage. 

The president of the Fenacor (Federação Nacional dos Corretores de Seguros Privados e de Resseguros, de Capitalização, de Previdência Privada, das Empresas Corretoras de Seguros e de Resseguros) Armando Vergilio said:

"The approved text is excellent for society. Everything is less difficult when forces of the good and the insurance market act in synergy, united. "

Armando Vergilio recalls that this was a "losing battle" just over two years ago when the irregular performance of associations and cooperatives grew rapidly in different parts of the country undermining consumer confidence and trust in the insurance sector.

If approved by the Senate, the associations and cooperatives that sell the so-called “vehicle protection” will have a period of 180 days to adapt to the new legal and regulatory framework of SUSEP and CNSP.

For more information, visit the CQCS website (Portuguese only).

Access to Insurance Initiative Newsletter 06/2018

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

 

We’re cleaning up – make sure you stay on our mailing list

We wanted to let you know that we’ve updated our Data Protection Policy to help you better understand how your data is being used and how we comply with the EU General Data Protection Regulation (GDPR).

Following this, if you would like to keep your subscription to the A2ii news, updates, and stay on our mailing list, please fill out this FORM; it will take 30 seconds of your time.  You can equally use the form to unsubscribe. For those that have already updated your subscription, there is no need to take action.

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Many thanks from all of us at the A2ii!

 

Recent Events

Supervisory Dialogue on the impact of informality on insurance markets – what supervisors can do

 

17 May 2018, Rio de Janeiro, Brazil

The event, which brought together 43 participants from 15 countries, provided an overview of how informality may affect insurance markets bringing to light the challenges faced by supervisors. The event also provided a platform for information sharing on the topic with presentations made on the approaches adopted by jurisdictions in different regions to try and identify and address informality.

The IAIS-A2ii Supervisory Dialogue was part of a three‐day series of events co-hosted by Superintendência de Seguros Privados (SUSEP), the Brazilian insurance supervisory authority.

 

 

 

The signing of the SUSEP – GIZ – A2ii Memorandum of Understanding                                                                          

On May 17th, SUSEP, GIZ and A2ii formalized the cooperation agreement on SUSEP hosting the A2iis regional hub for Latin America in its headquarter building in Rio de Janeiro. The agreement is intended to strengthen the foundations of the regional hub as well as demonstrate the on-going commitment of the A2ii and SUSEP to work together on promoting financial inclusion and strengthening supervisory capacity building in the region. The A2ii regional office for Latin America has been running since October 2017following the arrival of Regina Simoes, A2ii Latin America Regional Coordinator in July 2017. 

 

 

 

 

 

Sustainable Insurance Forum meeting

16 May 2019, Rio de Janeiro, Brazil

The A2ii participated in this 4th meeting of the Sustainable Insurance Forum (SIF) which included supervisors from 15 different jurisdictions. The SIF launched in December 2016 with the aim to bring together insurance supervisors to tackle issues of common concern with respect to sustainable development. Since its inception its main focus has been on climate change issues and in this regard, it has developed a joint IAIS-SIF Issues Paper on Climate Change Risks to the Insurance Sector. It is intended that a final draft of the paper will be published following the IAIS committee meetings in Moscow later in the year.

At the meeting in Rio supervisors worked together on several new tracks of work, including the development of tools and training materials on sustainability issues to help supervisors raise these issues in their ongoing engagements with firms. In addition, the SIF agreed to develop a guidance document on how insurance supervisors can leverage their strengths to encourage the development of sustainable insurance markets – and support broader strategic efforts to promote sustainable finance across banking, investment, and capital markets. The A2ii also presented at the meeting sharing its experiences in conducting capacity building activities with supervisors.

 

13th Consultative Forum on Mobile Insurance and InsurTech: rising to the regulatory challenge

9-10 May, Accra, Ghana

During the afternoon of 9 May and the morning of 10 May, over 60 supervisors, insurance industry representatives and other stakeholders from 16 countries across Africa and the globe gathered at the 13th Consultative Forum in Accra, Ghana to discuss taking a customer centric approach to using innovation in inclusive insurance and the fair treatment of customers in InsurTech initiatives.

Three questions guided the Forum discussions: What is insurance supervisors’ role in market development and in promoting access to insurance? How can one best use InsurTech to the advantage of the customer? And, how can the mandate of the regulator encourage innovation that supports the development of the insurance market?

To harness InsurTech all the while protecting the financial system and consumers three pre-conditions were highlighted:

Regulatory clarity
Dialogue with the industry, and
Good understanding of consumers’ needs.  

Regulatory frameworks need to be sufficiently flexible to encompass the fast-paced changes in digital technologies. Considerations also need to be made as to how regulatory frameworks can encourage competition and  innovation, advance financial inclusion and allow for the delivery of more convenient financial services. Read InsurTech promise for microinsurance – rising to the regulatory challenge, to find out about the main takeaways.

To watch the full video of the 13th Consultative Forum visit the A2ii Youtube channel.

The 13th Consultative Forum took place alongside the 45th Conference of the AIO. The theme of the AIO conference was “Innovation, Risk, and the Future of Insurance in Emerging Markets ” and a number of perspectives on the impact of technology on insurance markets in Africa and using technology to expand access to insurance were discussed. 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 2018.

 

IAIS-A2ii Consultation Call on Ratios and cost structures in insurance supervision

24 May – webinar

 

This supervisory only  call dealt with supervisory ratios in insurance supervision, particularly in relation to client value and product cost structures. We were very happy to see a record number of participants for our call.

When licensing and supervising insurance products, supervisors need to make judgements on the soundness, sustainability and ethics of the product proposed. This is particularly the case when products are designed as part of an initiative for increased financial inclusion, as those underserved segments often contain economically and socially vulnerable consumers with low familiarity with insurance products. This call explored some of the approaches in evaluating this, the ratios involved (e.g. loss ratio, claims ratio, renewal ratio, and others) and some concrete examples of what considerations come into play.

We heard an expert presentation by Clémence Tatin-Jaleran and Andrea Camargo, and were joined by Michael Sicsic of the UK’s Financial Conduct Authority (FCA), who shared the FCA’s experience with the set of key reporting ratios they are piloting. Annibal Vasconcellos of the Brazilian supervisor SUSEP also shared his experiences with the monitoring of ratios.

For supervisors who couldn’t attend, a recording of the expert presentation is available on demand. Simply send a message to consultation.call@a2ii.org. A written summary of the call will shortly be available on the A2ii website here.

 

Upcoming Events

 

Inclusive Insurance Regulation Training, Toronto Centre

18 – 22 June Rabat, Morocco

This training seminar will be conducted in French language only and is designed to help participants examine topics related to:

• The importance of adopting a proportionate approach to regulation and supervision to improve access to insurance services and ensure adequate protection for low-income consumers.

• Recent practices and case studies of selected jurisdictions that have advanced the field of microinsurance.

The training curriculum is 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 and it has been organised in cooperation with the Moroccan supervisory authority (ACAPS), the IAIS and the Toronto Centre.

 

iii-lab Innovation Incubator

Durres, Albania, 19-22 June 2018

For the second and last international meeting of the Inclusive Insurance Innovation Lab, all four country teams from Albania, Ghana, Kenya and Mongolia will come together in the Albanian town of Durres. The focus of this international workshop (Innovation Incubator) will be for country teams to advance the ideas and prototypes developed during the last national meetings. Through learning journeys and interactions with their peers and external guests, lab participants will gain further knowledge about challenges and opportunities in implementing their ideas. They will leave the workshop  with a clear plan for implementation. 

 

IAIS-A2ii Consultation Call on Supervisory Responses to Fraud

19 July – webinar

Please save the date for the next IAIS-A2ii consultation call on Thursday 19 July. The topic will be on “Supervisory Responses to Fraud”, and registrations will be launched in the coming weeks.

The IAIS-A2ii consultation calls are topic-focused webinars (via WebEx) for insurance supervisors.

 

 

Impact Insurance Academy

10  - 14 September, Turin, Italy

The ILO's Impact Insurance Facility, the International Training Centre of the ILO and partners including the A2ii are excited to announce the first Impact Insurance Academy! This is a unique opportunity to learn from a decade of experience of the Facility in inclusive insurance!

The one-week Academy will take place at the International Training Centre of the ILO in Turin, Italy, from September 10 to 14, 2018 and combines plenary discussions with elective workshops, peer-assist sessions, real case studies and networking opportunities to offer you an inspiring and dynamic learning environment.  The A2ii will be running afternoon breakout sessions on inclusive insurance regulation and supervision.

Visit the website to learn more about the Academy, the programme, and how to register!
Got any questions? Write to impactinsuranceacademy@itcilo.org.

 

Recommended reads

 

Initial Findings Note on the role of insurance regulators in dealing with consumer data protection risks

The aim of this new A2ii study is to unpack and define different data-related risks within inclusive insurance and explore the consumer protection issues that can arise as a result. The note is based on desk research with insurance supervisors from different regions on their experiences and approaches. It provides practical insights to help guide supervisors on how to deal with these emerging risks. This note should be considered as the research team's initial findings. They will be augmented and adjusted through additional research and interviews and published as part of a more comprehensive report on the topic later in the year.

 

InsurTech promise for microinsurance – rising to the regulatory challenge

InsurTech has the potential to reach more people, empower and engage emerging customers, improve service delivery and ultimately, enhance client value. But it could also lead to financial exclusion, erosion of trust and even harm the reputation of the insurance industry, if not properly regulated.  Industry experts and insurance supervisors met at the 13th Consultative Forum in Accra, Ghana, to identify some of the challenges and opportunities presented by InsurTech and to discuss how different stakeholders can work together to facilitate innovation, consumer protection and market development. This article summarises the main takeaways of the 13th Consultative Forum on Mobile Insurance and InsurTech. 

 

Knowledge category: 

Access to Insurance Initiative Newsletter 05/2018

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

 

WATCH LIVE and have your say!

13th Consultative Forum on Mobile Insurance and InsurTech: rising to the regulatory challenge

9-10 May, Accra, Ghana

 

Take me to the stream!

The African Insurance Organisation, IAIS, the Microinsurance Network and the A2ii will hold its 13th Consultative Forum on “Mobile Insurance and InsurTech: rising to the regulatory challenge” on the afternoon of Wednesday, 9th May and morning of Thursday, 10th May 2017 in Accra, Ghana.

Watch the Forum LIVE in English or French, take part in the discussion either by submitting your answers to panellists’ questions through the menti.com or on Twitter #13thCF!

This Forum will focus on balancing innovation in the use of new technologies and how the various stakeholders – insurance supervisors, the industry and policymakers – can work to ensure that customers, many of whom have limited or no experience of insurance, are treated fairly.

The Consultative Forum takes place alongside the 45th AIO Conference and General Assembly.

Further information about the Forum is available here. For queries please contact A2ii Sub-Saharan Africa regional coordinator Janice Angove (janice.angove@fsb.co.za).

 

Recent Events

 

Inclusive Insurance Innovation Lab – second national workshops

10-12 April, Nairobi, Kenya

17-19 April, Accra, Ghana

17-19 April, Ulaanbaatar, Mongolia

24-26 April, Tirana, Albania

The second set of Inclusive Insurance Innovation Lab (iii-lab) national workshops began by reviewing the work that had been undertaken since the official start of the iii-lab last November. During this time, participants have created strong teams from across the insurance sector (including the regulator, insurance companies, intermediaries and demand-side stakeholders) that meet on a regular basis. All teams have undertaken learning journeys to help uncover the main obstacles to access to insurance in their countries and have agreed on areas they would like to focus on for the remainder of the lab process and thus where they believe they can come up with an ‘innovation’ which will make a positive difference to insurance market growth in their country.

In this respect, the second national workshops marked the transition from the analysis phase of the lab to taking concrete action. During the workshop, the teams were familiarised with the design thinking methodology and developed initial prototypes that will now undergo preliminary testing in the run-up to the Innovation Incubator in June, a four day workshop, during which all four country teams will meet in Albania.

 

To learn more about the project visit our website.

 

ASSAL Annual Conference

9-10 April, Santo Domingo, Dominican Republic

The ASSAL Annual Conference focused on "Risk Analysis and Assessment in the Insurance Sector". Regina Simoes, the A2ii Regional Coordinator for Latin America delivered a presentation on inclusive insurance with the participation of Peruvian and Colombian supervisors, who described different approaches to inclusive insurance in their countries.

The President of the Dominican Republic, Danilo Medina, opened the ASSAL Annual Conference whereas the Minister of Finance,  Donald Guerrero, gave the keynote speech.

The A2ii presentation will be available shortly on our website. 

 

IAIS-FSI High Level Meeting

12 April, Santo Domingo, Dominican Republic

The Meeting focused on the global insurance standards and supervisory priorities in Americas. It was divided into 4 sessions: 1) Insurance Regulatory Reforms; 2) Emerging Risks and New Developments in the Market; 3) Proportionality; and 4) Cyber Risk management and insurance. IAIS Secretary-General Jonathan Dixon opened the event and moderated session 1 on insurance regulatory reforms. In his introduction, he highlighted the importance of the IAIS partnership with A2ii. 

Regina Simoes, the A2ii Regional Coordinator for Latin America presented on proportionality in the context of financial inclusion, focusing on market conduct. The A2ii presentation will be available shortly on our website. 

 

A2ii presents at AFI meeting on the inclusion of insurance in National Financial Inclusion Strategies

25 April

On April 25th the A2ii presented to Alliance for Financial Inclusion (AFI) members the results of a recent survey on the inclusion of insurance in National Financial Inclusion Strategies (NFIS).

The survey was a joint initiative between the A2ii and AFI and provides a stocktake on the extent to which insurance has been included in NFIS so far and also draws out lessons from its inclusion. The survey was sent to insurance supervisors via the A2ii as well as AFI members which mainly consist of Central Banks (some of which also have a mandate for insurance) and Ministries of Finance.

Among the 36 countries that responded to the survey 29 had included insurance in their NFIS and 18 of these even as a separate pillar. The survey, however, did highlight the need for insurance to be more fully integrated with clear definitions of ‘inclusive insurance’ developed at the outset to both focus efforts and establish benchmarks which could then, later on, be used to monitor the success of the initiative. It was also notable that most indicators focused on access and usage of insurance with few actually measuring the value of the product for the client. As NFIS, and in particular the inclusion of insurance, is still a relatively recent development it was not possible to obtain much information on the ultimate impact of the inclusion of insurance. However, a number of jurisdictions responding to the survey highlighted how it had already triggered helpful activities in their jurisdiction such as the development of microinsurance regulations, new products launches or/and greater flexibilities allowed for the use of non-traditional distribution channels.

The results of this survey will also be used to inform decisions on future potential joint activities of the A2ii-AFI on the topic of inclusion of insurance in National Financial Inclusion Strategies. A report detailing the results of the survey will also be published in due course on the A2iis website.

 

A2ii joins the InsuResilience Global Partnership

The A2ii recently joined the InsuResilience Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions. InsuResilience was launched at the 2017 UN Climate Conference in Bonn and aims to strengthen the resilience of developing countries and protect the lives and livelihoods of poor and vulnerable people against the impacts of disasters. The A2ii is pleased to be a member of the Partnership and to contribute to this exciting and important global platform.

We believe that insurance plays an important role in protecting the most vulnerable and making communities more resilient when disaster strikes. As the implementing partner of the IAIS on financial inclusion, we provide input to global policy debates and draw attention to the valuable role of insurance and the key role of insurance supervisors in addressing resilience. Through capacity building, the facilitation of supervisory dialogue and peer-to-peer learning we strengthen the capacity and understanding of insurance supervisors to develop regulatory frameworks and supervisory approaches that are proportionate to risks posed by individual insurers. If well designed this should protect consumers and help build trust in insurance at the same time as incentivising insurance companies to provide suitable products to the poor and vulnerable thus helping increase their resilience to risk.

We are looking forward to being a member of a growing community on building financial protection to disasters and look forward to sharing learnings and experiences on the topic with other members of the Partnership. 

 

Upcoming Events

 

Supervisory Dialogue on the impact of informality on insurance markets – what supervisors can do

17 May 2018, Rio de Janeiro, Brazil

 

The objective of this Supervisory Dialogue is to provide a platform for information sharing on the topic of informality of insurance markets. An overview of how informality may affect insurance markets will be provided with an examination of the risks for consumers as well as consideration on how informality may impact the structure and functioning of the sector.

The Dialogue will be restricted to supervisors and is expected to bring together high-ranking representatives from across the region and beyond.

There will be simultaneous translation into Portuguese, Spanish and English.

To find out more or to register, please click here.

 

IAIS-A2ii Consultation Call on Ratios and cost structures in insurance supervision

24 May – webinar

When licensing and supervising insurance products, supervisors need to make judgements on the soundness, sustainability and ethics of the product proposed. This is particularly the case when products are designed as part of an initiative for increased financial inclusion, as those underserved segments often contain economically and socially vulnerable consumers with low familiarity with insurance products. This call will explore some of the approaches in evaluating this, the ratios involved (e.g. loss ratio, claims ratio, renewal ratio, and others) and some concrete examples of what considerations come into play. This call topic is a response to the discussions that took place in the IAIS Implementation Committee meetings in November 2017 and a request to the A2ii to explore the topic in more depth.

You can register for this call here

The IAIS-A2ii consultation calls are topic-focused webinars (via WebEx) for insurance supervisors.

 

Knowledge category: 

Newsflash: Watch LIVE today - 13th Consultative Forum on Mobile Insurance and InsurTech

The African Insurance Organisation, IAIS, the Microinsurance Network and the A2ii will hold its 13th Consultative Forum on “Mobile Insurance and InsurTech: rising to the regulatory challenge” on the afternoon of Wednesday, 9th May and morning of Thursday, 10th May 2017 in Accra, Ghana.

Watch the Forum LIVE in English and French, starting at 14.00 (GMT) today and at 9.00 (GMT) tomorrow, 10 May,  take part in the discussion either by submitting your answers to panellists’ questions through the menti.com or on Twitter #13thCF! 

This Forum will focus on balancing innovation in the use of new technologies and how the various stakeholders – insurance supervisors, the industry and policymakers – can work to ensure that customers are treated fairly in the providing access to insurance for previously unserved customers.
The Consultative Forum takes place alongside the 45th AIO Conference and General Assembly.

For queries please contact A2ii Sub-Saharan Africa regional coordinator Janice Angove (janice.angove@fsb.co.za).

  Suivez en francais 

  Watch the livestream in English!  

 

 

 

 

Access to Insurance Initiative Newsletter 04/2018

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

 

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

20 March, Colombo, Sri Lanka

 

The 12th Consultative Forum on the topic of InsurTech: rising to the regulatory challenge took place on 20 March in Colombo, Sri Lanka gathering high-ranking representatives from the regulatory and supervisory bodies (in Asia), industry, NGOs and other stakeholders. 

InsurTech holds vast potential for improvements in insurance product design, the development of better-tailored products and reducing administrative costs. These efficiency gains can lead to lower premiums, better client servicing and faster payouts. However, InsurTech developments also embody 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.

During the forum, innovative InsurTech applications were presented. One of the key messages emerging from the discussion was the necessity for the human touch in advanced data analytics and artificial intelligence application. India and Pakistan presented the specific regulations issued in their countries. It was discussed how the usage of big data and advanced data analytics enables increased segmentation and could lead to a situation where low-income/higher risk customers are priced out of the market and the risk-pool principle of insurance is dissolved.

In order to mitigate the risks and strike a balance between facilitating innovation and protecting consumers, supervisors must monitor and understand the market. Test and learn environments and a close dialogue with the industry are important enablers of enabling innovation in the market to happen.

To find out more about the CF12 read Beyond data - leveraging technology for inclusive insurance post-event news release. The full video of the Forum is available here

 

 

IAIS-A2ii Consultation Call on Innovation hubs and accelerators

22 March - webinar

On 22 March the A2ii, in collaboration with the IAIS, hosted its 27th consultation call, focusing on the topic of innovation hubs, accelerators, and sandbox arrangements.

When stimulating innovation, there are limits to what a supervisory authority can achieve alone. Inter-institutional cooperation is a powerful tool for responding to new market trends and for creating a safe space for the launch of new initiatives. This call took a closer look at these cooperation platforms and sandboxing arrangements, including case studies on the role of insurance supervisors within them.

The expert presenters invited to present on this webinar were from Cenfri, presenting some of the conclusions of their study on Regulating for Innovation, which can be found here. Supervisors from the Kenyan IRA, the Zimbabwean IPEC, and Mexico’s CNSF also gave presentations on the topic. The presentations can be found on the page for the consultation call, which is also where the consultation call report will be published. 

 

Upcoming Events

 

13th Consultative Forum on Mobile Insurance and InsurTech: rising to the regulatory challenge

9-10 May, Accra, Ghana

The African Insurance Organisation, IAIS, the Microinsurance Network and the A2ii will hold its 13th Consultative Forum on “Mobile Insurance and InsurTech: rising to the regulatory challenge” on the afternoon of Wednesday, 9th May and morning of Thursday, 10th May 2017 in Accra, Ghana.

This Forum will focus on balancing innovation in the use of new technologies and how the various stakeholders – insurance supervisors, the industry and policymakers – can work to ensure that customers are treated fairly in the providing access to insurance for previously unserved customers.

The Consultative Forum takes place alongside the 45th AIO Conference and General Assembly. Supervisors, policymakers and industry players are highly welcome to attend.

Further information and registration forms are available here. For queries please contact A2ii Sub-Saharan Africa regional coordinator Janice Angove (janice.angove@fsb.co.za).

 

 

Inclusive Insurance Innovation Lab – second national workshops

10-12 April, Nairobi, Kenya

17-19 April, Accra, Ghana

17-19 April, Ulaanbaatar, Mongolia

24-26 April, Tirana, Albania

Country teams participating in the Inclusive Insurance Innovation Lab will meet in their respective countries (Albania, Ghana, Kenya and Mongolia) for this 3-day workshop. During the workshop, the teams will revisit the initial outcomes of the Lab process so far and identify areas to take forward. Team members will gain skills in innovation capacity and generate inputs for the Innovation Incubator that will take place in Albania in June. Participation in these workshops is by invitation only.

For more information about the Lab click here.

 

Supervisory Dialogue on the impact of informality on insurance markets – what supervisors can do

17 May 2018, Rio de Janeiro, Brazil

The objective of this Supervisory Dialogue is to provide a platform for information sharing on the topic of informality on insurance markets. An overview of how informality may affect insurance markets will be provided with an examination of the risks for consumers as well as consideration how informality may impact the structure and functioning of the sector.

The Dialogue will be restricted to supervisors and is expected to bring together high-ranking representatives from across the region and beyond.

There will be simultaneous translation into Portuguese, Spanish and English.

To find out more or to register, please click here.

 

IAIS-A2ii Consultation Call on Ratios and cost structures in insurance supervision

24 May – webinar

When licensing and supervising insurance products, supervisors need to make judgements on the soundness, sustainability and ethics of the product proposed. This is particularly the case when products are designed as part of an initiative for increased financial inclusion, as those underserved segments often contain economically and socially vulnerable consumers with low familiarity with insurance products. This call will explore some of the approaches in evaluating this, the ratios involved (e.g. loss ratio, claims ratio, renewal ratio, and others) and some concrete examples of what considerations come into play. This call topic is a response to the discussions that took place in the IAIS Implementation Committee meetings in November 2017.

You can register for this call here

The IAIS-A2ii consultation calls are topic-focused webinars (via WebEx) for insurance supervisors.

Knowledge category: 

Newsflash: New Resolution paving the way for the development of microinsurance in Argentina

The Argentinian Superintendencia de Seguros de la Nación (SSN)  on 9 February 2018 authorised a Resolution supporting the commercialisation and implementation of microinsurance. The measure is part of broader efforts in Argentina to improve social and financial inclusion in the country. It is intended that by fostering the development of microinsurance in the local market,  that the vulnerable, will have access to the benefits of insurance.

The Resolution on Microinsurance  (which includes item 23.8 in the General Regulation of Insurance Business (Resolution SSN 38.708/2014)) comes hand in hand with the policy work on financial inclusion being carried out by the Ministry of Finance and the Argentinean Government. 

The main points that the Resolution introduces are:

  • Microinsurance plans will provide more beneficial terms and promote a quicker resolution of claims compared to traditional insurance;
  • The deadline for the insurer to agree or not with the payment of claims is now 15 days (for traditional insurance the deadline is 30 days). Should the insurer require additional information of the facts, the deadline for coming to a decision about the claim may be extended to up to 10 calendar days. The failure to express the decision within the given timeframe implies acceptance.

The Resolution also requires insurers wanting to write business under the new microinsurance regulation to abide by the following requirements.

  • The policy  must unequivocally express the main risk covered and, in all cases, it must contain the term "microinsurance";
  • Provide an explanatory guide on the contractual conditions to the policyholder in clear language. In addition, post the explanation of the coverage granted by the plan on their website including

a. the contractual conditions,
b. information for policyholders on how to pay the premiums and report the claims;

  • The presentation of the Application Form-Certificate in case of Collective Insurance, and the Simplified Policy, in case of Individual Insurance, will be considered as sufficient proof of the existence of the contract.

Regarding intermediaries, the regulation establishes that any communication, claim or payment made to insurance intermediaries, companies of intermediaries or Institutional Agents will have the same effect as communication with an insurance company. In addition, a training program for intermediaries and other agents is under development. 

 

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