The objectives of the regulation, supervision and policy sub-group, short RSP sub-group, are to create a conducive regulatory, supervisory and policy environment for sustainable growth in the provision of quality microinsurance services to the low-income people by:
- Identifying regulatory and policy barriers that prevent the low-income market from accessing insurance;
- Identifying ways/better practices to meet the challenges;
- Developing key principles for prudential regulation and supervision;
- Providing operational and strategic guidance to policymakers, regulators/supervisors as well as donors.
The RSP sub-group has witnessed that insurance regulators and supervisors increasingly assume responsibility to contribute to an inclusive financial system. Customer protection has been acknowledged as a major challenge, especially the need to extend customer protection to informal schemes for low-income segments. By promoting the broad issue of “an enabling policy environment”, the subgroup aims to encourage access, innovation and growth while protecting consumers and the soundness of institutions.
In 2007, the subgroup started a formal cooperation with the International Association of Insurance Supervisors (IAIS) in the form of a Joint Working Group (JWG). IAIS has been a very good driver for RSP sub-group activities. The association has recently established an internal working group on microinsurance. The keynote address by Michel Flamée, the Chair of Executive Committee of the IAIS, given during the Microinsurance Conference 2007 in India demonstrates the strong commitment of the IAIS. All outputs and outcomes resulting from the partnership have been fed into the CGAP Working Group in Microinsurance since all activities take place under the agenda of the JWG.
The RSP sub-group’s outputs of 2007 and activities in 2008 include:
- Issues Paper has been formally endorsed by the IAIS in May 2007 and will now be disseminated
- Five country studies analyzing the regulatory environment for microinsurance in South Africa, Uganda, India, Philippines, and Colombia will be completed soon; first drafts will be available in early 2008
- Draft principles per country are also expected in early 2008
- Briefing Notes (in 2008) based on the country studies will follow
- Mutuals and Cooperatives Survey: The results from a survey on regulation and supervision of mutuals and cooperatives are also expected for mid 2008 (questionnaire is being finalized and will be disseminated via the networks of IAIS and ICMIF).
New project to build supervisors’ capacity:
Besides completing these initiatives, the JWG plans a Global Initiative for Enabling Regulatory and Supervisory Frameworks for Microinsurance at the IAIS. After designing the project proposal, donors will be progressively approached in 2008.
Workshops and conferences.
The JWG/RSP subgroup has actively contributed to the agenda of the Microinsurance Conference 2007 and is engaged in the preparation for a Regional Workshop on Microinsurance in Beijing in January 2008 as well as the policy conference on regulation, supervision and policy in September 2008 together with the Financial Stability Institute (FSI) in Basel.
Related Documents and Information
Issues Paper in Regulation and Supervision of Microinsurance (pdf)- Special Focus Regulation, Supervision and Policy Sub-group (RSP) Update
- Regulation and Supervision of Microinsurance
- International Association of Insurance Supervisors (IAIS)
Contact: Brigitte Klein