Application Paper on Regulation and Supervision Supporting Inclusive Insurance Markets

This International Association of Insurance Supervisors (IAIS) Application Paper, developed in collaboration with the Microinsurance Network and the Access to Insurance Initiative, provides application guidance supporting inclusive insurance markets. Where enhancing inclusive insurance markets is a policy objective, the paper provides guidance for supervisors. It aims to help implement the Insurance Core Principles in a manner that protects policyholders, contributes to local and global financial stability, and enhances inclusive insurance markets.The paper provides actual examples related to areas covered by supervisory material for the practical application of principles and standards. It provides specific application guidance in areas relevant for improving access such as the need to:

• Formalize informal providers using transitional measures where needed;
• Facilitate innovations that help overcome barriers for access to insurance;
• Regulate the use of pilot schemes.

The paper emphasizes that proportionality in practice does not mean the introduction of systematic, or automatic, simplifications or exemptions for certain insurers or intermediaries. Administrative or technical requirements can be made simpler, but only after considering the nature, scale, and complexity of the insurers or intermediarys business. Assessment of a proportional approach should always be based on individual risk profile and impact on supervisory objectives.