Lessons from a decade of Microinsurance Regulation ( )

Transcription

1 Inclusive Insurance Asia Public Private Dialogue (PPD) March 15, 2017 / Hanoi, Vietnam Lessons from a decade of Microinsurance Regulation ( ) Dr. Antonis Malagardis Program Director, GIZ RFPI Asia Page 1

2 Contents 1. The state of MI Regulations 2. Some product trends 3. Regulatory Impact Assessment 4. Regulators/supevisors actions 5. Measures beyond regulation 6. Challenges ahead Page 2

3 The state of MI Regulations Initial impetus for developing MI regulation varies among countries Striking the balance between an enabling buisness environment and ensuring consumers are protected is an ongoing challenge Increasing focus on applying the concept of proportionality Page 3

4 Some product trends Maturity of the market both from demand and supply (Credit) Life, Health and microinsurance form the market majority Property and agriculture MI in a nascent stage Bundling, or embedding insurance, is the key selling strategy and continues to grow Products have evolved to better adapt to customer needs Innovative products lines such as index insurance are on the rise Page 4

5 Regulatory Impact Assessment (1) Increasing activities to foster MI called for an objective impact assessment of policies and regulation The Regulatory Impact Assessment (RIA) of Microinsurance MI is a decision-making tool examining selected potential impacts arising from government action! Its result can promote targeted action! Page 5

6 Regulatory Impact Assessment (2) Objectives of the RIA-MI: generating knowledge and best practices on the regulation and supervision of insurance markets developing and disseminating information, assessment and training tools that foster access to insurance; and analyzing, distilling lessons and reporting to stakeholders on the impact of regulatory initiatives on access to insurance. Page 6

7 Pillar 1: Defining the Assessment Benchmark RIA Methodology Pillar 2: Determining Impact and Extracting Strategic Lessons Step 1 - Public interest Step 2 Research framework Step 3 - Measures Identify rationale, and policy and strategic objectives Define impact areas, stakeholders and main research questions Define quantitative and qualitative indicators Step 4 - Collection Step 5 - Analysis Step 6 - Policy changes Collect data and information Process tracking and assessment of impact Identify lessons for strategy and policy Page 7

8 Indicators for Regulatory Impact Defining impact areas and indicators: Impact areas Market development Quality of institutional development Client value 12 quantitative and qualitative impact indicators show facts and highlight trends Categorize along a traffic-light based ranking Page 8

9 Regulatory/supervisory actions National strategies Microinsurance Policy papers Laws and regulations Definition of microinsurance (qualitative/quantitative) Page 9

10 Measures beyond regulation Financial education campaigns Collaboration of regulators/supervisors with the insurance industry Coordination with other authorities (e.g. MNOs, MFIs, retailers, etc) International development agencies and global partnerships Page 10

11 Formalization Challenges ahead Data gathering and analysis Responding to innovations Dealing with large-scale aggregators in the MI value chain Dealing with NatCat and Climate Risks (is MI too small?) Page 11

12 Industry is faster than regulation. Every day, industry submits new products bill payment providers want to act as distributers, but some regulators require a registered or licenced entity to market insurance Caution needs to be taken not to overregulate before private market has moved in Page 12