MR Microinsurance_2012_03_29.indd - International Labour ...

Access to insurance and financial sector regulation
encouraging enterprise to enhance social well-being. Innovation should continue
to be encouraged while ensuring that the complexities are understood, the
risks are mitigated and there is reward for those willing to take risks (Mukherjee,
2011).
25.3 Regulatory interventions through enabling policy frameworks
A framework for financial inclusion needs to comply with international standards.
The insurance industry follows the IAIS’s Insurance Core Principles
(ICPs) and the accompanying standards and guidance. 1 The ICPs generally
provide sufficient flexibility to be adapted to national circumstances. However,
the relationship between international standards and financial inclusion is
often not well understood and there is scope for better elaboration and
guidance.
To achieve this, in 2005 the IAIS and the Microinsurance Network created a
joint working group to provide a platform for policymakers, regulators and
development practitioners to share experiences. The active involvement of
these players has contributed to the development of a growing body of
knowledge in the regulatory, supervisory and policy aspects of microinsurance,
including the development of guidance to apply the ICPs in support of financial
inclusion.
Also emerging from the labours of this joint working group is the Access to
Insurance Initiative (see Box 1.4). Launched by IAIS and development partners
in 2009, the Initiative facilitates financial inclusion by promoting the effective
and proportionate regulation and supervision of insurance markets. Since its
inception, the Initiative has carried out a systematic analysis of the microinsurance
sector in several countries to provide information in support of constructive
policy recommendations. The evidence available so far has helped in
outlining the key levers of a prudential regulatory framework that supports the
sustainable expansion of microinsurance, as summarized in Figure 25.1 and
discussed in detail throughout the rest of this chapter. These levers are also
consistent with the G-20 Principles for Innovative Financial Inclusion (see
Table 25.1) – a reflection of how an enabling policy and regulatory environment
can spur innovation for financial inclusion while ensuring financial stability
and protecting consumers.
1 For details on the Insurance Core Principles and related standards and guidance, see www.iaisweb.org.
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