ClydeCo-Resilience-Inclusive Insurance Report



Some governments and international bodies (such as the G20) specifically give regulators mandates to work on measures that encourage public, private and mutual insurers to reach underserved populations. Government mandates to regulators can also give insurance regulators the power to change practices inhibiting financial inclusion. In some cases, such as in India and South Africa, governments have instructed regulators to incorporate compulsory targets for private sector insurers to encourage them to reach out to the low-income market. 24 The IAIS has published key issues papers and guidance on the topic of Microinsurance and Inclusive Insurance. The IAIS comprises supervisors and regulators frommore than200 jurisdictions and its mission is to promote effective and globally consistent supervision of the insurance industry in order to develop and maintain fair, safe and stable insurance markets. Stephen O’Brien, UN Under-Secretary- General for Humanitarian Affairs , and Stephen Catlin (outgoing Chair of the Insurance Development Forum) sum up the approach needed “We will need to help build functioning regulatory environments where they do not exist; we must support risk-literacy across the humanitarian and development sectors; and we need to build trust in communities that have a low trust in institutions”. 25

Sharing knowledge is vital, particularly where new approaches are being trialed and knowledge of insurance is low. Many resources and collaborations exist to foster dialogue. Key knowledge-sharing is taking place through organisations like the IAIS, International Cooperative and Mutual Insurance Federation (ICMIF), Cenfri, Access to Insurance Initiative (A2ii), and the Cambridge Institute for Sustainability Leadership (CISL). The ILO Impact Insurance Facility is a global knowledge hub for capacity development thatworkswithgovernments, insurers and other stakeholders to strengthen insurance markets. It also aims to embed insurance in strategies that reduce the vulnerability of populations and boost economic productivity. There are also regional programmes such as RFPI Asia (Regulatory Framework Promotion of Pro-poor Markets in Asia). It operates in accordance with the methodology of the A2ii and the global standards of the IAIS, aligning individual country needs with international standards and best practices. This newly created programme enhances insurance access across Asia as part of financial inclusion policies.

24 25 Stephen O’Brien is the UN Under-Secretary-General for Humanitarian Affairs and Stephen Catlin is the Executive Deputy Chairman XL Group and Chair of Insurance Development Forum

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