IAIS working towards regulation for microinsurance

by Artemis on October 29, 2010

Progress is being made by the International Association of Insurance Supervisors (IAIS) and the MicroInsurance Network (MIN) in an ongoing discussion looking at how best to regulate organisations involved in the distribution and provision of microinsurance and microfinance initiatives.

It’s good to see steps being made to set standards and supervisory regulation for microinsurance. It’s particularly encouraging to see that the IAIS acknowledge the important role that developing countries can play in setting the standards. The press release from the IAIS follows.

Regulation and supervision of Mutuals, Cooperatives and Community-based organisations in increasing access to Insurance Markets

The International Association of Insurance Supervisors (IAIS) and the MicroInsurance Network (MIN) has released a paper entitled Issues in regulation and supervision of mutuals, cooperatives and community-based organisations in increasing access to insurance markets (MCCOs). This document has been prepared by the IAIS-MIN Joint Working Group.

The paper recognises that MCCOs play an important role to improve the effective provision of insurance services in some jurisdictions to groups of the population that would otherwise be underserved or not served at all. This paper is one step forward in advancing discussion on the appropriate and effective regulation and supervision of MCCOs.

Peter Braumüller, Chair of the IAIS Executive Committee, underlined that “as the standard setter for insurance regulators, the IAIS acknowledges the important role that developing countries can play by participating in international standard setting and implementation initiatives to build a stronger global economy with a well-regulated financial sector. Through the IAIS-MIN Joint Working Group and the Access to Insurance Initiative, the IAIS is examining how to implement the G20’s commitment to develop and promote successful regulatory and policy approaches.”

“Financial inclusion is relevant not just for financial stability but also for socioeconomic stability by providing opportunities to the economically underprivileged population,” said Jonathan Dixon, Chair of the Access to Insurance Initiative. He welcomed the paper as it will serve as an important input for the development of guidance on regulation and supervision of microinsurance by the IAIS in the near future.

The paper can be downloaded here.

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