Blog

The shift to risk-based capital (RBC) approaches has many benefits for stakeholders in the insurance sector including consumers, industry players and supervisors. Not only does it support the development of the insurance market by providing flexibility and encouraging innovation, but it is also more efficient, allocating capital more appropriately to risk and reducing the amount of dormant capital. Additionally, RBC gives supervisors improved measures of financial soundness, insights into insurers’ risk management practises and corporate governance structures, comparability and proportionate ladders of intervention, leading to better supervision.

The impacts of climate change are diverse and wide-ranging. Its most immediate manifestations, such as natural catastrophes and extreme weather events, sea level rise, damage to biodiversity, and communicable diseases, amplify the hardships on developing economies which are often more vulnerable to damage and have fewer resources available to support the recovery.

To be able to provide well-designed insurance solutions that address the needs of the low-income and excluded customers in a manner that is customer friendly but also economically sustainable, calls for innovation - i.e. to do new things or to do things differently.

Dear friends and colleagues, I wish to begin this year’s end message by thanking the A2ii Secretariat team for their energy and unwavering dedication to the vision of Access to Insurance Initiative – that more poor and vulnerable people have access to and use affordable insurance appropriate for their needs.

The International Organisation for Migration estimated that 281 million people, almost four per cent of the world’s population, were living outside their home countries in 2020.  The World Bank calculates that in 2021, $773 billion were sent as remittances, although this number is estimated to be much higher if informal remittances were taken into account.