APPLICATION OF PROPORTIONALITY IN REGULATIONS Mutual Exchange - - PowerPoint PPT Presentation

APPLICATION OF PROPORTIONALITY IN REGULATIONS

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue Theme: Proportionality in Regulations and Microinsurance Business Model Development 12 July 2016 | New World hotel Manila, Philippines Presentation by Atty. Emmanuel F. Dooc Insurance Commissioner | Republic of the Philippines Chairman | MEFIN Network

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Inclusive Growth

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Inclusive Insurance/Microinsurance It’s an insurance product responsive to priority needs for risk protection; easy to understand; and affordable. Appropriate for low-income market - cost, terms, coverage, and delivery mechanisms.

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Success Factors to Target the Poor

Creating Buying Power Shaping Aspirations Improving Access Tailoring local solutions

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

1st regime 2nd regime

3rd regime

IMC 9-2006 Microinsurance Regulation & Declaration of Policy Objectives

IMC 01-2010 Regulation for the Provision of Microinsurance Products and Services IMC 2015-54 Regulation for the Provision of Microinsurance Products and Services

3.1 MILLION (2010) 31.1 MILLION (2014)

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Motivating the industry Consumer Protection

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Proportionality in Regulations

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Proportionality in Regulations

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Proportionality in Regulations

Technical Working Group Meetings Public-private sector collaboration Public seminars and consultations Surveys & Consultation Calls

Genuine industry dialogues

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Areas where proportionality matters the most

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Top 5 regulatory determinants of entry to inclusive insurance markets

• 1. Reducing disclosure content requirements
• 2. Allowing market sensitive language
• 3. Allowance of fully electronic policies
• 4. Availability of specific regulations for microinsurance
• 5. Allow use of any means of payment

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Top 5 market factors that influence your decision to enter

• r stay in the inclusive insurance business
• 1. Availability of distribution channels
• 2. Availability of clients/market information
• 3. Internal technical expertise/capacity
• 4. Profit potential
• 5. Availability of market education programmes

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Enabling a range of distribution channels

South Africa Peru Ghana Philippines

Pep (a clothing retailer chain) selling insurance products, funeral homes, sports affinity, church

• rganizations,

mobile/digital Microinsurance distributors don’t require pre-approval. Mobile/digital

Pawnshops, Cooperatives, Rural Banks, Mobile/Digital Developing a framework that opens to innovative way to distribute No licensing necessary

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Availability of specific regulations for microinsurance

South Africa Peru Ghana Philippines Definition Issued regulatory framework that defines microinsurance Fast Claims Payment 10 days payment

Philippines

• Regulation encourages use of local dialect
• Usage of language that is simple and easy to understand

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Reducing disclosure content requirements

Ghana Peru Philippines

Simple application and claims requirements

Allowing market sensitive language

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Other Areas for Consideration

• Alternative Dispute Resolution
• Premium limits
• Grace Period
• Incentives (Reduced Taxes / Capitalization)

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

The reality today is that we are all interdependent and have to co-exist on this small planet. Therefore, the only sensible and intelligent way of resolving differences and clashes of interests, whether between individuals

• r nations, is through dialogue.
• The Dalai Lama

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

• REGULATORS AND GOVERNMENT PROGRAMS TO PROVIDE UNIFIED,

CONSISTENT AND COMPLEMENTARY POLICY DIRECTIONS. COORDINATION IS A KEY

• SET CLEAR SIGNAL AND PROPORTIONATE REGULATIONS TO ENCOURAGE

PRIVATE SECTOR PARTICIPATION

• PATIENCE IN THE PROCESSES OF DIALOGUES AND CONSULTATIONS

Application of Proportionality in Regulations

Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Thank you.