Microinsurance: Improving Risk Management for the Poor, No. 14

Publication Date: Dec 2007
Published by: CGAP Working Group on Microinsurance
Document Type: Newsletter (PDF)

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Regulatory innovations for an enabling microinsurance environment

This newsletter provides information on the 3rd Annual Microinsurance Conference held in Mumbai, India. The conference focused on an enabling environment for microinsurance. Representatives from governments, supervisory authorities, donors, insurers and international standard-setting bodies from 50 countries discussed options for policy solutions, including regulatory innovations.

Conference participants concluded that an enabling environment for microinsurance includes:

• A clear political mandate for the regulator to develop microinsurance;
• Conducive regulations to facilitate mainstreaming of microinsurance;
• Coherence with policies from other sectors such as social protection, labor, agriculture and climate change;
• Fiscal incentives such as financial services tax relief;
• A sound overall legal and economic environment with well-organized contract enforcement, low inflation and removal of restrictions to foreign investments.