Around the world, people from a low-income background are vulnerable to a variety of risks due to their working and personal conditions. They often face the risk of falling into hardship due to the lack of social safety nets. If structured appropriately, insurance can play an important role in helping low-income people manage such risks. This is the context of inclusive insurance, which encompasses microinsurance. The goal of inclusive insurance is to provide financial protection against risks in a way that is affordable, sustainable, responsible and accessible by all types of customers, particularly customers from a low-income background.
This educational paper and toolkit fulfil the recommendation in the IAA Issues Paper “Addressing the Gap in Actuarial Services in Inclusive Insurance Markets”, by addressing three key questions regarding the application of proportionate actuarial services in inclusive insurance:
- How does one identify the key insurance risks in terms of a product or a provider?
- What actuarial or other advice or services are needed to manage these risks?
- What level of actuarial skills, if any, is needed to deliver the actuarial advice or service?
This paper is an outcome of a joint project between the IAA and the International Association of Insurance Supervisors (IAIS) to develop frameworks to support the proportionate prudential regulation and application of proportionate actuarial services in inclusive insurance markets. This paper should be read in conjunction with the expected IAIS material.
Toolkit Contents: Tool / Health & Life Product / Mobile Hospital Cash Product / Social Health Product
Webinar #1:
Background
Webinar #2:
Practical Experience
