12th June 2022

New Geneva Association report-"Insurance Development in Emerging Markets:The role of public policy and regulation"

A new report by The Geneva Association and Insurance Development Forum takes a comprehensive look at how government policies, laws, and regulatory frameworks can enable a thriving insurance market and ultimately help to close protection gaps in the most vulnerable countries.
Insurance is vital to economic stability and growth as well as making societies more resilient. Many emerging markets, however, face critical protection gaps that leave a relatively high proportion of individuals, households and businesses at risk in the event of misfortune. Addressing the low level of insurance penetration in emerging economies has become more urgent in light of the growing risks related to climate change, the rise of pandemics and socio-economic instability.
Building on research and expert interviews conducted in 14 emerging economies, the new report examines the role public policy and regulation play in developing a robust and competitive re/insurance market to help protect societies, support economic development and increase resilience. The report delves into the influence of local policy and insurance regulation in the context of supply- and demand-side factors, notably access to markets, low levels of financial literacy and risk awareness.
The report proposes potential courses of action to boost re/insurance markets and expand insurance coverage, such as calling on:
-Insurers to actively communicate to policymakers on the fundamental role of insurance; take a proactive role in raising risk awareness and financial literacy; and focus on the insurance needs of specific segments to deliver cost-effective products.
-Governments and policymakers to collaborate more closely with the insurance regulatory authorities and insurance sector; provide the regulatory authorities with a clear insurance market development mandate and appropriate resources; and prioritise raising financial literacy at all levels of society.
-Regulatory authorities to embrace insurance market development; review regulations with a view to more expeditious product development and innovation; take a more active role in educating policymakers on the economic and social value of insurance; and engage more with the insurance industry on how to build a more competitive and innovative insurance market.

"Insurance Development in Emerging Markets:
The role of public policy and regulation"
Dennis Noordhoek, director Public Policy & Regulation, The Geneva Association
Bill Marcoux, member of the Operating committee and Chair of Law, Regulation & Resilience Policies Working Group, Insurance Development Forum(IDF)
Kai-Uwe Schanz, deputy managing director and head of Research & Foresight, The Geneva Association

Geneva Association(115 articles)