Annex 4. Implemented. Minutes. of the MEFIN Technical Working Group Meeting. Prepared by: GIZ RFPI Asia II, MEFIN Secretariat

Transcription

1 Annex 4 Implemented Minutes of the MEFIN Technical Working Group Meeting Prepared by: GIZ RFPI Asia II, MEFIN Secretariat

2 Contents 1. Introduction Agenda Participants Accomplishments, January to June Revisiting the results of the PPD Separate meetings per Technical Working Group TWGs Work Plans Review Issues to be discussed within the Regional Steering Committee Closing Statement... 13

3 1. Introduction The Mutual Exchange Forum on Inclusive Insurance Network (MEFIN Network) aims to achieve sustainable inclusive insurance growth in Asia. Its current members are Indonesia, Mongolia, Nepal, Pakistan, Philippines and Vietnam. The programme has established four Regional Technical Working Groups (TWGs) on Regulation and Supervision, Business Models, Capacity Building and Knowledge Management. One of the meetings of the TWGs was hold in Manila, Philippines, on 13 July Agenda Joint Meeting: 8:45 AM 1. Reporting of accomplishments vs work plans, pending items 2. PPD: Challenges and the way forward 10:00 AM Health break 10:15 AM Individual Meeting per TWG 3. Work Plans for July December 2016 Joint Meeting 11:00 AM 4. Presentation of revised work plans 5. Issues resulting from TWG for decision by the Regional Steering Committee 3. Participants Regulation and Supervision - Ms. Battsetseg Nasanbat, Sr. Policy Officer, Insurance Products Dev. Division, FRC, Mongolia (Lead) - Mr. Dante Portula, Senior Advisor, GIZ RFPI Asia II, (MEFIN Secretariat) - Mr. Mochamad Muchlasin, OJK Director, Indonesia - Mr. Syed Nayyar Hussain Zaidi, SECD Director Insurance, Pakistan - Observing Industry Members: o Mr. Dip Prakash Panday, Shikhar Insurance, CEO, Nepal

4 Knowledge Management - Mr. Tariq Bakhtawar, Director Insurance, Securities and Exchange Commission of Pakistan (Lead) - Mr. Alexander Tabbada, Senior Advisor, GIZ RFPI Asia II, (MEFIN Secretariat) - Ms. Le Thi Mai Linh, Life Supervision Division, ISA Vietnam - Observers: o Mr. Jakub Nugraha, PT Asuransi Central Asia, Indonesia o Ms. Trinh Bich Ngoc, ManuLife, Head of Operations, Vietnam o Ms. Raquel Capio, GIZ ProGED o Ms. Melina Labao, CARD Pioneer, Philippines Capacity Building - Prof. Bahadur Fatta, Beema Samiti, Nepal (Lead) - Mr. Jimmy Loro, Senior Advisor, GIZ RFPI Asia II, (MEFIN Secretariat) - Mr. Shreeman Karki, Director Beema Samiti, Nepal - Ms. Wilma Conde, Microinsurance Division, Insurance Commission, Philippines - Ms. Loida Zaragoza, Microinsurance Division, Insurance Commission, Philippines - Observers: o Ms. Nguyen Huyen Trang, Agricultural Insurance, BaoViet, Vietnam Business Models - Commissioner Emmanuel F. Dooc, Philippines - Ms. Shayne Rose Bulos, Acting Division Manager/Supervising Insurance Specialist Microinsurance Division, Philippines(Lead) - Dr. Antonis Malagardis, Programme Director, GIZ RFPI Asia II, (MEFIN Secretariat) - Observers: o Mr. Mr. Yoga Prasetyo, PT Asuransi Allianz Life, Indonesia o Mr. Bat-Ulzii Taivan, Mongol Daatgal National Insurance Co., Mongolia o Mr. Vivek Jha, CEO Nepal Life, Nepal o Atty. Francis Paul Fernando, IC Philippines o Ms. Corinna Mueller, Consultant - Mr. Surya Prasad Acharya, Joint Seceratry, Ministry of Finance, Nepal

5 4. Accomplishments, January to June 2016 The session was started by the presentation of the accomplishments of each TWG during the first semester of Regulation and Supervision (presented by Mr. Dante Portula) MILESTONE ACTIVITY STATUS 1. TWG regulator members agreed to implement 2 types of regulatory instruments in their respective jurisdictions 2. List of common RIA indicators across MEFIN countries agreed upon 3. Members of insurance industry associations are engaged in the TWG work Conduct and analyze Self-Assessment (SA), publish aggregate report Develop action plan based on SA Adopt the Diagnostic Toolkit Against Natural Catastrophes to national environment Define RIA indicators and gather RIA figures in per country Profiling of industry associations in member country and invitation of the industry representatives to the TWG meetings 4. Meeting of TWGs Participate in scheduled meeting (Bangkok, Mar 2016) SAs were conducted by NP, MN, PH, VN, PK. The Secretariat has supported the countries in their SA process through consultation calls. Preparation of aggregate report for publication is ongoing. Action plan of each country, focusing on informal insurance, were discussed in the SA seminar in Nepal on May Pending RIA indicators, following the experience of the Philippines, were discussed during the RIA seminar in Kathmandu in May 2016 Update on profiling pending Industry associations and members were invited to the July 2016 MEFIN TWG meetings The TRS met in Bangkok in March 2016 Discussions Regulatory Impact Assessment (RIA) Mr. Surya Prasad Acharya from the Ministry of Finance (MoF) of Nepal commented that there is a need for global diagnostic indicators so that every country can prepare similar and comparable data. The knowledge based information and tools should be uploaded on the website so that they are easily accessible to all member countries. Dr. Antonis Malagardis remarked that the International Association of Insurance Supervisors (IAIS) already provides indicators for diagnostic studies that can be downloaded from their website. In the Philippines, RIA had been carried out two years ago reflecting the results of 10 indicators, that were

6 mostly relevant for the insurance business. MEFIN is now using these indicators for the draft study for Pakistan and will try to make it available on the website for its members. Widening of the MEFIN Network Commissioner Dooc said that in some countries the authority of the regulator encompasses more than just insurance; for example banking. In the Philippines the IC is also the primary regulator for pre-need, but this is a special case and other countries might not have other situations. So it is necessary to define if just insurance should be included or whether MEFIN can be more comprehensive. Mr. Dante Portula agreed that he would also include micro pre-need in the discussion. Cooperation between actors Mr. Dante Portula added that the Philippines is very unique, also in terms of coordination between the different institutions. This makes it easier to implement new regulations. Commissioner Dooc confirmed that in this unique setup, one circular can be issued jointly by various regulators that are affected by it. For example for formalization, only one circular was signed in the Philippines and the enforcement was comprehensive. The experience is great and should be replicated in other countries. The inter-regulator coordination should be an item to prioritize in the succeeding months. Knowledge Management (presented by Mr. Alexander Tabbada) MILESTONE ACTIVITY STATUS 1. Developed instruments by TBM and TRS are shared through the platform (website) 2. MEFIN web platform established and functioning Check and upload prepared documents Design official MEFIN logo and format for MEFIN publications Design platform Maintain the operation of the platform 3. Meeting of TWGs Participate in scheduled meeting (Bangkok, Mar 2016) With the assistance of the MEFIN Secretariat, 3 PH business models were developed by the TBM. These were shared to MEFIN members through during the training event in Bangkok in March 2016 pending the operation of the MEFIN website Official MEFIN logo and format for Factsheets were developed for approval by the RSC The MEFIN web page was designed and established together with an IT consultant. Initial design was prepared by the Secretariat and presented to MEFIN members during the RFPI Asia II Kick Off Meeting in Ho Chi Minh in January The website will be formally launched during the MEFIN organizational meeting in July Maintenance of operation will be discussed during the said meeting. The TKM met in Bangkok in March 2016

7 Discussions MEFIN Website The Login Data for the accessing the internal area of the website was provided to all RSC and TWG members. If the industry becomes member of MEFIN, they will also receive access. Peer-Review Mr. Surya Prasad Acharya asked whether it is possible to include the mechanism of peer-review as an approach into the implementation of Knowledge Management Initiatives. Capacity Building (presented by Mr. Jimmy Loro) MILESTONE ACTIVITY STATUS 1. Development of trainings following international standards 2. Insurance industry associations in MEFIN countries agreed to participate in the dialogue events Develop training modules on SA and RIA Carry out trainings on SA and RIA Invite MEFIN members, including private sector in Asia Documentation of events including emerging policy recommendations, forward to TKM and TRS 3. Meeting of TWGs Participate in scheduled meeting (Bangkok, Mar 2016) Training modules on SA and RIA were developed by the Secretariat Trainings on SA and RIA were conducted during the SAARC Nepal event in May 2016 Invitations to the 1 st Public-Private Dialogue (PPD) scheduled for July 2016 were sent and were responded to positively by 33 from public and 28 private sector representatives from MEFIN network countries Preparations were done for the July 2016 PPD. Documentation of the 1st PPD will be sent to MEFIN members for comments/ reference The TCB met in Bangkok in March 2016 All activities have been fully completed. Business Models (presented by Dr. Antonis Malagardis) MILESTONE ACTIVITY STATUS 1. Insurance Industry Associations in MEFIN countries agree to participate in the dialogue events (PPD) Map and analyze business models Presentation of business models in the bi-annual MEFIN dialogue event 3 business models in PH, 2 business models of MN and 2 of NP have been mapped, analyzed and documented in February and June business models in PH, 2 business models of MN and 2 of NP will be presented during the MEFIN Public-Private Dialogue scheduled in July 2016

8 2. Insurance industry agreed to contribute experience and to copublish KM materials Development and publication of case studies on business models, and factsheets on best practices 3. Meeting of TWGs Participate in scheduled meeting (Bangkok, Mar 2016) 3 PH business models/best practices were shared by the insurance industry and developed as Factsheets by the TBM. These were shared to Network members during the training event in Bangkok in March 2016 The TBM met in Bangkok in March 2016 One of the outputs related to the work of the TWG on Business Models is to come up with fact sheets. Therefore Dr. Antonis Malagardis presented the current state of the factsheets and was supported by two representatives from the respective companies, Mr. Dip Prakash Panday from Shikhar Insurance and Mr. Vivek Jha from Nepal Life. Exclusions Since one fact sheet described a product that excluded beautification, Commissioner Dooc suggested excluding elected surgery in order to have a more comprehensive exclusion. In addition, the Philippine products do not exclude self-inflicted injury anymore, but instead just define the term accident in order to avoid the exclusion. This is important, if the regulator has limited the number of exclusions for microinsurance. Factsheets Dr. Antonis Malagardis raised the issue that similar fact sheets should be developed for all countries such as Allianz in Indonesia, but also BaoViet and ManuLife in Vietnam and others. This should happen during the following six months. The representatives of both Vietnamese companies, Ms. Trinh Bich Ngoc and Ms. Nguyen Huyen Trang agreed that the fact sheets represent a good way to share experiences. Ms. Trang added that BaoViet is especially interested in designing agricultural insurance. Mr. Yoga Prasetyo confirmed that the information of the fact sheets is inspiring and will help in their own design of business models, after some adaptations. The fact sheets provide the main message, create new ideas, and enable to learn from the failures - not just from the success. He also wants to learn more about agricultural insurance, either indemnity based or weather index based, and how it can be applied for certain crops. Mr. Mochamad Muchlasin added that the factsheet could be updated with latest numbers. Successful Business Models Commissioner Dooc suggested recognizing the best innovation at the end of the year in terms of product and process. If products or business models work well in one country, they can be copied by other countries with some minor modification.

9 5. Revisiting the results of the PPD The challenges resulting from the PPD of the previous day were presented by the moderator: PRUDENTIAL REGULATION CHALLENGE Formalization of informal insurance activities Harmonization and streamlining of regulations Issues / Concerns re Core MI thematic areas: products, profitability, technology, promotion etc WAY FORWARD Promulgate appropriate regulation per country to encourage formalization of informal insurance activities Strengthen coordination among regulators and other line agencies Find appropriate country specific business model LICENSING CHALLENGE Application for insurance agents MI licensing AMLAC regulations WAY FORWARD Simplify application for insurance agents by keeping requirements to the minimum Streamline MI licensing procedures and requirements Improve coordination among regulators and other line agencies to standardize requirements DISTRIBUTION CHALLENGE Widening of distribution channels WAY FORWARD Identify country appropriate non traditional distribution channels including those employing digital technologies Regulation of non traditional distribution channels including provision of incentives to intermediaries Promulgate suitable regulations proportionate to non traditional distribution channels Low level of awareness on the value of insurance Develop and implement financial literacy programs with MI focus

10 BUSINESS MODELS CHALLENGE Data management (i.e. reportorial compliance; monitoring and information on industry and market situation) WAY FORWARD Develop / Implement reporting standards consistent with country needs Cumbersome and overlapping monitoring and reporting requirements demanded by regulators Issuance of joint circulars on harmonized requirements for oversight, reporting and monitoring requirements Licensing Ms. Trinh Bich Ngoc from ManuLife Vietnam asked the other countries to share their experience or the practice in other countries. Commissioner Dooc replied that in the Philippines, the regulation is very strict: the company must be registered, and the product and the agent must be registered. We require prior approval if it will be adapted by another microinsurance company. Even if a company just borrows a product, this product will be branded under the new name and has to be licensed again. The approval process generates revenues for the IC. The IC does not receive any budget from the government. Every time an insurer submits a product for approval, the IC charge fees and is therefore self-sufficient. For microinsurance, the fee is reduced to 50% of the usual amount which represents another example for proportionality. Mr. Syed Nayyar Hussain Zaidi from the regulator of Pakistan shared that the SECP requires prior review, but also post implementation certificates. Business Models - Timely settlement of claims Mr. Surya Prasad Acharya stated that in his opinion the biggest challenges are on the supply side the coverage and on the demand side the timely settlement of claim. He suggested to bring this question up in the RSC meeting to see how it is handled in other countries.

11 6. Separate meetings per Technical Working Group Each TWG met separately to discuss the Work Plan for the following six months. 7. TWGs Work Plans Review The four TWGs proceeded to the review and enhancement of the 2016 second semester Work Plans. The enhancements proposed by the TWGs, for presentation at the RSC, were the following. Business Models: For Milestone 1 1) improve existing business models in Mongolia and Nepal; 2) develop new business models for Indonesia. For Milestone 2 1) DC-oriented prototype; 2) Conduct of relevant trainings. For Milestone 3 (November 2016) 1) improve current fact sheets of Nepal and Mongolia; 2) Fact sheets to be developed for Vietnam, Indonesia and Pakistan. Knowledge Management 1) Prepare guidelines on publishing documents in the website (July to September 2016); 2) Prepare templates / formats to go with the guidelines; 3) Encourage preparation of lessons learned in fact sheets (not just success stories); 4) Facilitate inquiries in the website (start with PPD topics discussion). In plenary, it was agreed that a month should be spent to come up with guidelines on what to share in the website (e.g. news clips) and to identify the gaps. These should facilitate the populating of the website for more effective use by the member countries.

12 Capacity Building 1) Develop a module and conduct a training on MI prototype product allowing country specific requirements; 2) Pilot products life and non-life products - based on existing products in MEFIN countries and improved and adapted to local requirements in close coordination with the TWG on Business Models; 3) TCB to work out the venue, participants (mix of regulators and private sector), content, resource speakers, and duration of trainings based on expressed expectations. Regulation and Supervision Indonesia o 1) Submit self assessment by next week; o 2) Have a draft distribution channel by October 2016; Mongolia (FRC) o 1) Have a revised inclusive insurance definition of MI by September 2016; o 2) Have a draft supplemental regulation about distribution channels by October 2016; Nepal o 1) Issue distribution channel directive on MI intermediaries by September 2016 (for further discussion); Philippines o 1) issue regulation on distribution channels and consumer protection by September 2016; Pakistan o 1) enhance regulatory MI framework by October It was suggested at the plenary that the TRS would consider adding activities on supervision, e.g. reporting. 8. Issues to be discussed within the Regional Steering Committee The presentations also generated some topics and issues that were deemed appropriate for discussion at the RSC. They include the following. Should the work of the MEFIN Network include MI only or should it be opened to also include micro pre-need, micro HMO etc? Annual recognition for the best products and best processes in the MEFIN Network. Further simplification of Know Your Customer by regulators. Criteria for private sector membership to the TWGs to perhaps include 1) evidence of willingness to be actively engaged and 2) official nomination by the concerned country regulator(s). Come up with global indicators for financial inclusion to standardize dbase and diagnostic initiatives in MEFIN countries. RIA and IAIS tools will be available in the website. Identification of

13 other documents to be included in the website for sharing should be done. Establish the peer review mechanism particularly for the development of knowledge products. Cover both success and failure stories in the website. Fact Sheets as living documents to evolve through time to be able to capture impacts and results of business models / products. Challenges in the areas of licensing of intermediaries and streamlining procedures for product development. 9. Closing Statement Dr. Antonis Malagardis, in his closing statement, expressed satisfaction at the result of the TWG Meeting as it accomplished meaningful outcomes. He looks forward to the RSC Meeting in the afternoon where recommendations from the TWGs will be picked up, discussed and hopefully approved for implementation.