MR Microinsurance_2012_03_29.indd - International Labour ...

Current trends in microinsurance
Colombia, the President has promoted microinsurance on television, and in the
Philippines the Government sponsors a “Microinsurance Month” each year. Th e
government may also strengthen the supply side, for example, by organizing
workshops or training seminars on microinsurance to help the local industry
develop relevant expertise, as in Egypt, Ghana and Zambia.
3. Regulator and consumer protection advocate: As discussed in Chapter 25, it
may also be necessary for regulators to make adjustments to laws and regulations
to reduce obstacles to fi nancial inclusion. Some countries have even created a
special category for microinsurance companies (e.g. the Philippines), although
others (e.g. Colombia) have succeeded in stimulating inclusive insurance markets
without making regulatory changes. An important development in this
arena was the creation of the Access to Insurance Initiative (see Box 1.4), which
supports regulators and facilitates discussion among them to reach betterinformed
policy decisions, and to create a demonstration eff ect for policymakers
in other countries.
Box 1.4 Th e Access to Insurance Initiative
Th e Access to Insurance Initiative is a global programme aimed at facilitating
fi nancial inclusion through eff ective and proportionate regulation and supervision
of insurance markets. Th e Initiative was launched in 2009 by the Interna-
tional Association of Insurance Supervisors (IAIS), the global standard-setting
body, in collaboration with development agencies to promote regulatory frame-
works that support inclusive insurance while being consistent with international
standards. Th e IAIS leadership of this Initiative is critical because it sets global
standards through the Insurance Core Principles and provides capacity-building
support to implement those principles in various jurisdictions.
Th e Initiative endeavours to disseminate knowledge and build awareness of
how an enabling environment can encourage innovation for fi nancial inclusion
while protecting fi nancial stability and consumers. At the policy level, it provides
a platform for regulators and industry leaders in developing countries to con-
tribute to the IAIS processes of setting standards and providing guidance.
Within countries, the Initiative’s main contribution is to support diagnostic
studies that assess the current and potential supply and demand of microinsur-
ance, as well as macro-level conditions that might inhibit its development. With
this evidence, the Initiative facilitates stakeholder dialogue with policymakers
and industry leaders to spur the development of adequate products, delivery and
consumer protection approaches for low-income clients.
Source: Adapted from Access to Insurance Initiative, 2011.
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