A2ii releases two reports showing practical examples and lessons on proportionate application of the Insurance Core Principles

The Access to Insurance Initiative (A2ii) released two thematically-related reports that provide practical examples and lessons from the experience of insurance supervisors who have implemented or begun the process of implementing proportionate regulations towards increasing access to insurance. Drawing on the experiences of Ghana, Mexico and the Philippines, the first report “Proportionality in practice: Distribution" examines the practical aspects of distribution where insurance supervisors are flexible and adjust certain supervisory requirements in order to encourage the insurance industry to offer insurance to the underserved or those excluded from insurance services while protecting consumers. The second report “Proportionality in practice: Disclosure of information” draws on the experiences of Brazil, Pakistan, Peru and El Salvador and examines the practical aspects of disclosure in which supervisors adopt proportionate regulation in order to encourage the industry to offer inclusive insurance while ensuring consumer protection

Commenting on the reports, Hannah Grant, Head of Secretariat of the Access to Insurance Initiative (A2ii), said: “The studies show clearly how each of the countries tailored their strategy and approach to suit their specific market characteristics and development objectives, pointing up the need to consider the market context when developing proportionate regulation.”

Through the Insurance Core Principles (ICPs), the International Association of Insurance Supervisors (IAIS) provides a globally accepted framework for the supervision of the insurance sector. The IAIS underscores proportionality in implementing the ICPs, but also acknowledges that there is still a lack of experience and best practice in implementing proportionate regulations that successfully balance effective supervision, access to insurance and consumer protection. It was for this reason that, the IAIS requested its implementation partner, the Access to Insurance Initiative (A2ii), to develop these case studies.