Public Dialogues
Index Insurance Best Practices - Public Dialogue
Event Report:
On 28 February, the Public Dialogue on Index Insurance Best Practices took place. This dialogue was based on the key insights from the joint A2ii-UNCDF paper on 'Index Insurance best practices for insurance regulators and practitioners in the Pacific Island Countries’.
Pascale Lamb, A2ii, opened the call with a presentation on the previous work that has been done by A2ii and IAIS on the topic, as well as the basic concepts of index insurance. Krishnan Narasimhan, Programme Manager of the Pacific Insurance and Climate Adaptation Programme (PICAP), UNCDF, presented the background and workstreams of the PICAP, as well as the relevance of index insurance for the Pacific. He highlighted the vulnerability of Pacific Small Island Developing States to the impacts of climate change and natural hazards, given their exposure and limited capacity to manage such risks and overcome large economic losses. The initial pilot product of parametric insurance in the region was introduced in Fiji, and this initiative became especially relevant after the heavy rains that occurred between December 2022 and January 2023, which has so far triggered payments for 535 individuals.
This was followed by a presentation by Caroline Waqabaca from the Reserve Bank of Fiji. Despite Fiji’s high exposure to climate risks, the capacity to manage these risks is limited, and the cost of climate financing is high. She explained how parametric insurance was introduced in the jurisdiction in collaboration with various stakeholders, and being the first one of this kind in the region, she also covered the sandboxing process that the product went through.
Finally, Peter Okongo, Inspection Officer of non-life insurance at the Regulatory Authority of Uganda presented Uganda’s experience in introducing Index Insurance. Peter shared the progress made since 2011, when the idea was first introduced, and the role that the IRA played in the public-private partnership that implemented agriculture index-based insurance.
Event Announcement:
Public Dialogue: Index Insurance Best Practices
Due to its innovative approach, Index insurance is rapidly growing in popularity as an alternative to traditional indemnity-based insurance. For those regions that are most exposed to natural disasters, index insurance has the potential to provide coverage to those who are most affected by these types of events. Index insurance has many potential benefits; it can reduce administrative costs, allow for the claims settlement process to be quicker, and can reduce moral hazard, among others.
Insurance regulators, have a crucial role to play for the development and implementation of viable index insurance products. A sound regulatory framework that enables the necessary market conditions, while at the same time ensuring consumer protection is necessary for the success of index-insurance based products.
In partnership with the UNCDF, the next A2ii-IAIS Dialogue will present the key insights from the joint A2ii-UNCDF paper on “Index insurance best practices for insurance regulators and practitioners in the Pacific Island countries”, presented by Krishnan Narasimhan, Programme Manager, Pacific Insurance and Climate Adaptation Programme at UNCDF.
After the presentation of the paper, Peter Okongo, IRA Uganda and Lepani Uluinaviti and Lanieta Lomalagi from the Reserve Bank of Fiji will give some insights about the progress made in implementing index insurance regulations, as well as the challenges faced in their jurisdictions.
The webinar will showcase regulatory guidelines designed to support regulators when they engage with index insurance-based solutions.
This webinar will take place on 28 February, from 13:00 to 14:15 CET and will be open to the public. The platform used will be Webex and there will be simultaneous interpretation in French and Spanish.
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Dialogue Public: Meilleures pratiques en matière d'assurance indicielle
Grâce à son approche innovante, l'assurance indicielle gagne rapidement en popularité en tant qu'alternative à l'assurance traditionnelle basée sur les indemnités. Pour les régions qui sont les plus exposées aux catastrophes naturelles, l'assurance indicielle a le potentiel de fournir une couverture à ceux qui sont les plus touchés par ces types d'événements. L'assurance indicielle présente de nombreux avantages potentiels : elle peut réduire les coûts administratifs, accélérer le processus de règlement des sinistres et réduire le risque moral, entre autres.
Les régulateurs d'assurance ont un rôle crucial à jouer dans le développement et la mise en œuvre de produits d'assurance indicielle viables. Un cadre réglementaire solide qui permet de créer les conditions de marché nécessaires, tout en assurant la protection des consommateurs, est indispensable au succès des produits basés sur l'assurance indicielle.
En partenariat avec le FENU, le prochain dialogue A2ii-IAIS présentera les principales conclusions du document conjoint A2ii-FENU sur les Index insurance best practices for insurance regulators and practitioners in the Pacific Island countries (meilleures pratiques en matière d'assurance indicielle pour les régulateurs et les praticiens de l'assurance dans les pays insulaires du Pacifique), présenté par Krishnan Narasimhan, directeur de programme, Programme d'assurance et d'adaptation au climat du Pacifique au FENU.
Après la présentation du document, Peter Okongo, IRA Ouganda, et Lepani Uluinaviti et Lanieta Lomalagi, de la Banque de réserve de Fidji, donneront un aperçu des progrès réalisés dans la mise en œuvre de la réglementation de l'assurance indicielle, ainsi que des défis dans leurs juridictions.
Le webinaire présentera les directives réglementaires conçues pour soutenir les régulateurs lorsqu'ils s'engagent dans des solutions basées sur l'assurance indicielle.
Ce webinaire aura lieu le 28 février, de 13h00 à 14h15 CET et sera ouvert au public. La plateforme utilisée sera Webex et il y aura de l’interprétation simultanée en français et en espagnol.
Inscrivez-vous ici.
Diálogo público: Mejores prácticas para seguros basados en índices
Debido a su enfoque innovador, los seguros basados en índices están ganando popularidad rápidamente como alternativa a los seguros tradicionales basados en indemnizaciones. En las regiones más expuestas a catástrofes naturales, los seguros basados en índices tienen el potencial de proporcionar cobertura a los más afectados por este tipo de sucesos. Los seguros indexados tiene muchas ventajas potenciales; pueden reducir los costes administrativos, permitir que el proceso de liquidación de siniestros sea más rápido y pueden reducir el riesgo moral, entre otras.
Los reguladores de seguros desempeñan un papel crucial en el desarrollo y la aplicación de productos de seguros basados en índices viables. Para el éxito de los productos basados en seguros basados en índices, es necesario un marco regulador sólido que permita las condiciones de mercado necesarias y, al mismo tiempo, garantice la protección de los consumidores.
En colaboración con el FNUDC, el próximo Diálogo A2ii-IAIS presentará las ideas clave del documento conjunto A2ii-FNUDC sobre "Index insurance best practices for insurance regulators and practitioners in the Pacific Island countries" (Mejores prácticas de seguros basados en índices para reguladores y profesionales de los seguros en los países insulares del Pacífico), presentado por Krishnan Narasimhan, Director del Programa de Seguros y Adaptación al Clima en el Pacífico del FNUDC.
Tras la presentación del documento, Peter Okongo, IRA Uganda y Lepani Uluinaviti y Lanieta Lomalagi, del Banco de la Reserva de Fiyi, ofrecerán algunas ideas sobre los progresos realizados en la aplicación de la normativa sobre seguros basados en índices, así como sobre los retos en sus jurisdicciones.
El seminario web mostrará directrices normativas diseñadas para apoyar a los reguladores cuando se comprometan con soluciones basadas en seguros basados en índices.
Este seminario web tendrá lugar el 28 de febrero, de 13:00 a 14:15 Hora Central Europea, y estará abierto al público. La plataforma utilizada será Webex y habrá interpretación simultánea al francés y al español.
Inscríbase aquí.
