Microinsurance Development Strategy for Tanzania

Transcription

1 Microinsurance Development Strategy for Tanzania Dr. Baghayo A. Saqware Member of Technical Working Team Chair of Education, Public Awareness Sub- Committee

2 Need Improving risk management for majority of underserved or un- served population Current insurance and microinsurance penetration is very low Insurance culture is very low Process Alignment to national priorities [National financial inclusion agenda] Concerted approach through multi- stakeholder engagement; working together for a common goal Why a Microinsurance Strategy?

3 Strategy Formulation Process Understanding need/demand Insights into insurance needs of low- income people in Tanzania (FinScope, Diagnostic study, complementary research) Understanding supply Stock take of existing microinsurance business, products practices, successes, gaps and requirements (diagnostic study) Synthesis and consolidation Developing a framework for the microinsurance development strategy Analysis and strategy formulation (supply, demand and environment) Strategy formulation workshop with the Technical Working Group- December 6, 2013

4 About the Strategy sets out the road map and framework for increasing access to insurance for the lowincome segment of the Tanzanian population. The overall objective of the strategy is to provide guidance to the Microinsurance coordinator, a multi- stakeholder Technical Working Group (TWG) and Steering Committee, in mapping out and implementing various market facilitation interventions aimed at strengthening supply, stimulating demand and creating an enabling environment for microinsurance business.

5 Microinsurance Development Strategy Strategic areas and flow of process formulation Review of the Tanzania microinsurance market Implementation of Phase 1 ( ) (Prioritization and Sequencing of interventions) Review of regulatory environment and development of specific regulations for microinsurance operations Development of microinsurance regulations for Tanzania (a review process initiated) Development of Microinsurance development strategy Setting up the leadership structure for the microinsurance development process Completed Evaluation Consolidation and design & rollout of phase 2 Work in Progress Not done

6 Tanzania s Vision for Microinsurance A vibrant microinsurance market sustainably contributing to the well- being and addressing the insurance needs of the low- income population of Tanzania. Stimulating effective demand Awareness Education Product appropriateness Building responsive supply Capacity Innovation Technology Product design Distribution Creating Enabling environment Regulations Supervision Consumer education Monitoring

7 Strategy Pillars FAIR Vision A vibrant microinsurance market sustainably contributing to the well-being and addressing the insurance needs of the low-income population of Tanzania. Goal Increased access to insurance for all Tanzanians Strategic objective People in Tanzania, particularly those in the low-income population segment have access to insurance, as part of their risk management strategies CUSTOMER CENTRIC INNOVATIVE SOUND PARTICIPATIVE

8 National Priority Alignment National Financial Inclusion Framework The National Financial Inclusion Framework set the pace for improving access to financial services to all Tanzanians It galvanizes all relevant stakeholders in financial services under one common vision of success and provides strategic direction for all initiatives for Financial Inclusion in the country. working definition of Financial Inclusion for Tanzania entails the regular use of financial services, through payment infrastructures to manage cash flows and mitigate shocks, which are delivered by formal providers through a range of appropriate services with dignity and fairness Application to microinsurance: the definition entails that people in Tanzania have access to a wide range of appropriate insurance products addressing their risk management needs while protected by coherent consumer protection provisions and mechanisms.

9 Strategy leadership Steering Committee Microinsurance Coordinator Overall guidance, funding raising and high- level monitoring of the effectiveness of the Strategy Process management and stakeholder coordination and management Technical Working Group Spearheading strategy implementation Sub- Technical Working Groups Product development, distribution & capacity building, + related enabling environment issues Awareness and Consumer education + related enabling environment issues Dedicated technical guidance and action

10 Strategy ingredients Covers a 3 year period challenging but realistic; prioritizing key interventions Recognises and demonstrates alignment to key national policies, in particular, the National Financial Inclusion Framework takes into account emerging microinsurance best practices in both microinsurance process management and market development takes into account the views of, and has the support of, a range of key stakeholders, particularly those represented in the Technical Working Group outline a process and set of interventions that leads to sustainable and systematic changes in the microinsurance provision in Tanzania include a road map, milestones, timelines and recommendations on a monitoring and evaluation framework

11 Where are we? Still early days of the strategy implementation In 2014 we implemented the following Learning session Two Capacity building training programmes Introduction to Microinsurance Managing Distribution Business case (Finscope Insurance findings and Mobile microinsurance regulation) Now in the process of developing the work plan for 2015

12 Strategy ingredients Covers a 3 year period challenging but realistic; prioritizing key interventions Recognises and demonstrates alignment to key national policies, in particular, the National Financial Inclusion Framework takes into account emerging microinsurance best practices in both microinsurance process management and market development takes into account the views of, and has the support of, a range of key stakeholders, particularly those represented in the Technical Working Group outline a process and set of interventions that leads to sustainable and systematic changes in the microinsurance provision in Tanzania include a road map, milestones, timelines and recommendations on a monitoring and evaluation framework

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14 Thank You