Policy Seminar: A global view on policy approaches to enhance access to insurance Rio, 8th November 2011 Martina Wiedmaier-Pfister on behalf of German Federal Ministry for Economic Development and Cooperation (BMZ) and German International Cooperation (GIZ) 1
Insurance supervisors are drivers of inclusive insurance markets. 2
Objective Enhancing the capacities of insurance supervisors Multiple Partners Policy, Regulation & Supervision a key route Global Program ensures global learning & IAIS standard setting input To increase access & reduce poverty 3
Sponsors and partners Global charter sponsors: Regional and national partners: 4
Our key activites Knowledge and learning Country projects Contribution to IAIS standard setting Advocacy and international plattforms 5
Country Diagnostic Mapping Latin America 1.Brazil 2.Colombia 3.Jamaica 4.Peru Completed Asia 1.India 2.Philippines 3.China 4.Mongolia In progress/ in preparation 6
How to start? Howto start an insurance inclusion agenda? Research, public-private stakeholder process, regulatory adaptions, national strategy 7
What to do? Strategic options for supervisors (1) Financial sector or financial inclusion policy (2) Financial literacy and consumer protection (3) Coordination with other policy or regulatory fields (4) Insurance regulatory framework 8
Strategic option 1 1. Financial sector or financial inclusion policy that includes inclusive insurance market development liaising with other regulatory authoritites mainly the Central Bank, Ministry of Finance or Cooperative Authority 9
Is this market women awareof insurance, and itspotential and pitfalls? 10
Strategic option 2 2. Financial literacy and consumer protection engagement of of public private stakeholders Financial sector authoritites, Ministry of Education Industry associations Development agencies Ghana: Financial literacy and consumer protection framework Philippines: Road Map for Financial Literacy 11
Strategic option 3 3. Other policy or regulatory fields relevant for access to insurance: Cooperatives Banking and microfinance Payment systems Telecommunication Foreign investment Know-your client rules Health sector Agriculture Taxation 12
MI Regulation Mapping Asia 1.India 2.Philippines 3.China 4.Chinese Taipei 5.Cambodia Central & South America 1.Brazil 2.Mexico 3.Peru Africa 1. Ghana 2. South Africa 3. Uganda 13
Strategic option 4 4. Insurance regulatory framework main themes in insurance regulations: (1) Entry requirements for providers and intermediaries (2) Demarcation between life and non-life insurance (3) Facilitating innovative delivery channels (4) Simple products and understandable contracts (5) Definition of microinsurance that allows to delineate MI (6) Consumer protection approaches that work for the poor 14
Strategic options combined Financial inclusion policy Insurance Regulations Other regulatory fields Financial literacy 15
1. Leadership: Commitment to financial inclusion The G20 Financial Inclusion Principles 2. Diversity: Competition, market based incentives and diversity of service providers 3. Innovation: Technological and institutional innovation 4. Protection: Comprehensive approach to consumer protection 5. Empowerment: Financial literacy and financial capability 6. Cooperation: Accountability and coordination within government; partnerships and consultation across all stakeholders 7. Knowledge: Data to make evidence based policy and measure progress 8. Proportionality: Policy and regulatory framework proportionate with the risks and benefits involved 9. Framework: A regulatory framework, reflecting international standards and national circumstances 16
The G20 Financial Inclusion Principles 1. Leadership 2. Diversity 3. Innovation 4. Protection 5. Empowerment 6. Cooperation 7. Knowledge 8. Proportionality 9. Framework 17
Thank you! 18