Workshops and Seminars
Microinsurance Regulation for Insurance Supervisory Authorities & Insurance Practitioners - Consultative Forum on "Business models, distribution and their regulatory"
Supervisors and insurers discuss regulatory implications of various business models
The Annual International Microinsurance Conference is a highlight in the microinsurance calendar. This year it was hosted in Jakarta, Indonesia, with the support of the Indonesian financial services authority, the OJK.
As part of the conference, the IAIS and Microinsurance Network, supported by A2ii, organized a Consultative Forum to provide a platform for public-private dialogue. The first forum focused on microinsurance business models, distribution and regulatory implications and was attended by more than 100 participants from 40 countries.
In opening the forum, Peter van den Broeke of the IAIS secretariat reiterated the IAIS’s strong focus on instilling proportionate regulatory practices that also work for the low-income segment. Stefanie Zinsmeyer of the A2ii then presented emerging microinsurance business models, focusing on related risks and regulatory implications for supervisors. The presentation provided a snapshot of an A2ii synthesis note across 25 jurisdictions around the world that will shortly be circulated for consultation with IAIS members via the Financial Inclusion Sub-Committee. Click here for the presentation.
The presentation formed the basis for a panel discussion among supervisors and private sector players on business models that work for the low-income population and their regulatory implications. Distribution by third-party aggregators like retailers, utility companies or mobile network operators is becoming increasingly important. This was confirmed by Commissioner Firdaus Djaelani from the OJK. As aggregators own the client base and provide the sales force, they have strong bargaining power vis-à-vis insurers. They also have non-insurance interests and often operate outside the jurisdiction of insurance supervisors. Collaboration with regulators such as the telecommunications and cooperative authorities is therefore important.
The panelists discussed how to make sure that consumers are protected in such new partnership models. The facilitator, Arup Chatterjee from the Asian Development Bank, stressed that “this is a very new subject and we are currently all learning together”. Supervisory know-how is crucial, as supervisors need to understand new intermediation channels in detail to be able to recognize the associated risks.
