3rd IAIS-MIN-A2ii Consultative Forum Mass and micro: Consumer protection challenges in inclusive insurance markets
The 3rd IAIS-MIN-A2ii Consultative Forum took place back to back with the 10th Annual Microinsurance Conference in Mexico City on 11 November 2014.
Inclusive insurance markets are a challenge for both industry and regulators. Insurers need to innovate in terms of products and distribution models. Regulation needs to permit innovative business models while protecting policyholders. Mass insurance distribution models are growing in Latin America and elsewhere, and they are also relevant for inclusion. Regulatory responses are also on the rise. Insurance for these markets can only work if consumer risks are minimized and trust in insurance is growing.
The International Association of Insurance Supervisors, the Microinsurance Network and the Access to Insurance Initiative in collaboration with the Munich Re Foundation organized the 3rd Consultative Forum on “Mass and micro: Consumer Protection challenges in inclusive insurance markets” in the morning of 11th November 2014 at the Sheraton Maria Isabel Hotel Mexico City. The Forum was organized back to back with the 10th Annual Microinsurance Conference of the Munich Re Foundation and the Microinsurance Network.
More than 90 representatives of the industry, insurance supervisors and other public authorities met to debate the emergence of mass insurance and share their views and experiences.
The draft agenda can be found here.
Outcomes:
“The distinction between mass insurance and microinsurance was introduced in the 3rd Consultative Forum in Mexico, on 11 Nov 2014, organized by the IAIS, the Microinsurance Network and the Access to Insurance initiative. Basically, the proposal was that there are important differences between mass and micro insurance, but they also have factors in common. Three elements are used to define the rationale of mass and microinsurance. In terms of the channel, mass insurance mostly relies on NON-traditional channels, microinsurance relies on both, traditional AND non-traditional channels. In terms of the product, both are simple products. However, mass products tend to be designed by the channel, whereas micro products should be designed for the protection needs and priorities of the low-income segment. Finally, in terms of the client: mass insurance addresses the wide ranging client base of the mass channel whereas microinsurance addresses the low-income segment and their protection needs.”
The International Association of Insurance Supervisors (IAIS)
The IAIS is a voluntary membership organization of insurance supervisors and regulators from more than 200 jurisdictions in nearly than 140 countries. In addition to its Members, more than 130 Observers representing international institutions, professional associations and insurance and reinsurance companies, as well as consultants and other professionals participate in IAIS activities.
www.iaisweb.org
The Microinsurance Network (MIN)
The Microinsurance Network's vision is for a world where people of all income levels are more resilient and less vulnerable to daily and catastrophic risks through improved access to effective risk management tools. The Network's mission is to promote the development and delivery of effective insurance services for low-income people by encouraging shared learning, facilitating knowledge generation and dissemination, and providing a multistakeholder platform. In support of its mission, the Microinsurance Network: Distils and disseminates lessons learnt to promote client-driven and good-value insurance; Raises awareness on the demand and potential for microinsurance among key stakeholders; Contributes to the development of good practices for the industry. The Microinsurance Network works with a broad range of stakeholders and maintains in all its activities low-income at its centre, prioritising work and actions that meet clients’ needs and protects their interests and well-being.
www.microinsurancenetwork.org
