1. Access to Insurance Initiative A global programme for sound regulatory and supervisory frameworks Improving access to insurance for the low- income population in Jamaica RECOMMENDATIONS 4th July 2014 Donna Swiderek, Andrea Camargo, Sekayi Campbell, Martina Wiedmaier- Pfister Financial Services Commission (FSC) Kingston, Jamaica

2. Jamaica is a Nascent Market To advance inclusion it is essential to HOLISTICALLY APPROACH THE CHALLENGES, to: (i)Identify and address supervisory and regulatory obstacles to offer incentives for providers to offer microinsurance products responsibly; (ii) encourage providers to be innovative and improve the supply of microinsurance products that offer real value to the consumers; (iii) promote demand, (iv) foster trust by protecting microinsurance consumers, treating them fairly and ensuring products offer real value 2

3. 1. Regulatory regime for responsible inclusive insurance Adoption of a regulatory definition of microinsurance. Remove barriers for risk carriers (i.e.) reducing prudential requirements as seen with Microinsurance Mutual Benefit Associations in the Philippines. Remove access barriers for distribution channels by introducing a new category of microinsurance intermediary distribution channels. Protect the microinsurance consumer by speeding up and simplifying processes. 3

4. 1. Regulatory regime for responsible inclusive insurance Simplify microinsurance policies, but also ensure that necessary information for consumers about rights, obligations, applicable procedures, deadlines, complaints-handling and dispute resolution mechanisms will be disclosed in a simple and easy manner. Develop and enforce separate reporting obligations on microinsurance business. 4

5. 2. Improving the supply of microinsurance products with real value to consumers Improve the capacity of providers through training staff and management on microinsurance best practices, proportional training for microinsurance agents, market research and seeking quality distribution relationship. Improve the offer of needed microinsurance products by partnering with those that know the needs of the clients and improving efficiency and innovation to reduce expenses. Adoption of appropriate public policies that form the basis of public private partnerships (PPP). 5

6. 3. Improving demand and take-up A national financial inclusion strategy should be developed, institutionalized and have the support of key entities. Integration of financial education in the financial inclusion strategy. Create more mandatory products and ensure their transparency for client awareness. (i.e.) mandatory life insurance for fishermen through the Fishers Act that will be in place soon Create links to Jamaican Diaspora (i.e.) NHT overseas contributions program, the Ministry of Foreign Affairs, El Salvador links to their Diaspora for microinsurance. Promote trust through continuous contact; (i.e.) education and awareness sessions with clients. 6

7. 4. Capacity building for FSC in regards to microinsurance Pay attention to possible practices of distribution channels that could be assimilated to abuse of a dominant position in the market or excessive and predatory pricing. Leverage funding for capacity building (i.e.) FIRST Initiative; which is part of World Bank and offers short term Technical Assistance grants to strengthen financial sectors and build more inclusive financial systems. Peer exchange- host a regional dialogue with other supervisors, visit supervisors in other countries. International forums through IAIS, A2ii or Munich re to name a few. 7

8. 5. Improving an efficient microinsurance market through a Microinsurance Committee Who would be on the Committee? o led by FSC, the committee should include providers, distribution channels, government, regulators and supervisor, consumer protection associations, etc. Consultation on MI regulatory reforms and creation of market conduct initiatives. Identify MI capacity issues within Jamaica and how to fill them. Research and help establish a long term business case for MI to assist with industry buy in. 8

9. 5. Improving an efficient microinsurance market through the Microinsurance Committee Demand: Cooperatively deepen the understanding of the demand for microinsurance by the target population Supply: Through consultations identify and facilitate steps to improve the microinsurance supply landscape Establish a monitoring and evaluation (M&E) framework for microinsurance at the country level. 9

10. 6. Protect microinsurance consumers effectively FSC should map any exception regimes in order to be able to measure the risk that these providers pose for financial stability and consumer protection. Institutionalise a national strategy of financial education as part of the institutionalisation of the financial inclusion strategy. Ensure that consumers receive transparent, complete and timely information about the products they purchase (marketing materials and contractual documents). 10

11. 6. Protect microinsurance consumers effectively FSC should ensure that consumers are aware of the existence and conditions of group insurance policies. Distribution channels and/or microinsurance intermediaries disclose all the relevant information fully, in a transparent and timely manner, and treat microinsurance consumers fairly. Insurers should adopt better practices in order to promote trust on microinsurance market. 11

12. 6. Protect microinsurance consumers effectively Through regulation the FSC must clarify requirements for internal complaints-handling mechanisms in insurance ensuring that they are accessible and affordable. FSC must ensure that dispute resolution mechanisms will be accessible and affordable for the low-income population. 12

13. 13 Thank you! www.access-to-insurance.org