Paper
Issues Paper: Addressing the Gap in Actuarial Services in Inclusive Insurance Markets
Understanding the importance of actuarial roles in the microinsurance market
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This paper intends to expand on the input and support provided by the International Actuarial Association (IAA) to the International Association of Insurance Supervisors (IAIS) with respect to actuarial roles in microinsurance. It also proposes specific recommendations for future action. In conventional insurance markets, actuaries play important roles in product development, pricing, risk management, and solvency. However, in emerging markets, there is a need to consider the overlap between insurance and microinsurance, and whether the needs for actuarial services are the same in microinsurance as in the broader insurance market. The paper also outlines some initial principles for developing guidance and actuarial standards of practice for microinsurance. Key recommendations for microinsurance stakeholders include:
- Develop an International Actuarial Note (IAN) on microinsurance;
- Include microinsurance in existing IAA education and awareness initiatives and develop a medium term strategy for promoting, encouraging, and supporting training;
- Expand actuarial education efforts in microinsurance to include non-actuaries, particularly in countries where local actuarial associations do not exist;
- Provide additional application guidance to national insurance regulators with respect to proportionate actuarial services in inclusive insurance markets;
- Conduct additional data-gathering efforts to improve the conclusions and recommendations from this initial paper.
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