APPLICATION OF PROPORTIONALITY IN REGULATIONS Mutual Exchange - PowerPoint PPT Presentation

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

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 Tailoring Shaping Improving Buying local Aspirations Access Power solutions Application of Proportionality in Regulations Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

31.1 MILLION (2014) IMC 2015-54 Regulation for the 3.1 MILLION Provision of IMC 01-2010 (2010) Microinsurance Regulation for Products and the Provision of IMC 9-2006 Services Microinsurance Microinsurance Products and Regulation & Services 3 rd regime Declaration of Policy Objectives 2 nd regime 1 st regime Application of Proportionality in Regulations Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Consumer Protection Motivating the industry 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 Public-private Public Surveys & Working sector seminars and Consultation Group collaboration consultations Calls Meetings 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 or 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 Pawnshops, Pep (a clothing Microinsurance Mobile/digital distributors don’t Cooperatives, Rural retailer chain) selling Banks, Mobile/Digital insurance products, require pre-approval. funeral homes, Developing a sports affinity, church framework that opens organizations, to innovative way to mobile/digital 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 Peru Ghana Philippines Africa Definition Issued regulatory framework that defines microinsurance Fast Claims 10 days payment Payment 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 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

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 or nations, is through dialogue. - The Dalai Lama Application of Proportionality in Regulations Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

 R EGULATORS AND GOVERNMENT PROGRAMS TO PROVIDE UNIFIED , CONSISTENT AND COMPLEMENTARY POLICY DIRECTIONS . C OORDINATION IS A KEY  S ET CLEAR SIGNAL AND PROPORTIONATE REGULATIONS TO ENCOURAGE PRIVATE SECTOR PARTICIPATION  P ATIENCE IN THE PROCESSES OF DIALOGUES AND CONSULTATIONS Application of Proportionality in Regulations Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue

Thank you. Application of Proportionality in Regulations Mutual Exchange Forum on Inclusive Insurance (MEFIN) Public – Private Dialogue