The use of index insurance as an alternative to traditional indemnity-based insurance has increased over the last twenty years, particularly as a mechanism for insuring against extreme weather risks.
In response to expressions of interest from many supervisors, both the IAIS and the A2ii have undertaken stocktaking exercises. On this consultation call, experts shone a light on the content of the IAIS “Issues Paper on Index-based Insurances”, and the A2ii’s “The Regulation and Supervision of Index Insurance: Status and Regulatory Challenges”. Both of these publications will be published shortly. In addition to these presentations, supervisors shared their jurisdiction’s experience with index-based insurance.