Financial literacy building and consumer education AIO Life Seminar Togo, 26 November 2015

Agenda Background Stakeholders involved Approaches for delivering improved financial capability Recent A2ii engagements on the topic - lessons learnt 2

Background: Why financial education? Low insurance penetration in developing countries Inadequate perception of insurance services Consumers need protection from asymmetry of information “Consumers …to make informed choices, to know where to go for help, and to take effective actions …” (OECD, National Financial Education Strategies) 3

Background: Financial capability 4 Financial education should improve financial capability

Stakeholders Industry: Associations, insurers, intermediaries and third- party service providers Public authorities: Government ministries, central banks, supervisory authorities Civil society: Non-governmental organisations, consumer protection bodies Donors and global engagements: G20-Global Platform for Financial Inclusion, Consumers International, Child & Youth Finance, OECD, International Foundations etc 5

Different strategic approaches Individual stakeholder led effort:  Public  Private Multi-stakeholder approach:  National strategy – does it include insurance?  Insurance sector public-private partnership 6

7 Media, electronicAdvocatesCommunitiesEducationGive- aways Radio jingles, drama TV programs Leaflets, posters Speeches, interviews Billboards Articles, blogs Videos, music Internet portals Comparison websites Phones: SMS, quiz, mobile applications Tablet computers Brand: logo Teachers Priests Trade unions Corporate volunteers Employers Journalists Trainers Clients Competitions Expositions Road shows Theatre Runs Group games Workshops Fairs Study circles School or university curricula Clubs, visits to financial institutions Teaching material Tests National financial education week/ month Token gifts Loyalty products Freemium Delivery channels for financial literacy

Consultation Calls – supervisor only peer exchange, Sept 2015 Focused on the role of the insurance supervisor in financial consumer education Case studies from the Philippines, South Africa, Columbia and Tunisia 85 insurance supervisors from 42 different countries participated Consultative Forum – multi-stakeholder dialogue event, Nov 2015 Approx. 70 stakeholders discussed industry led initiatives and national strategies Experiences shared of what works and what hasn’t work so well Recent A2ii engagements on the topic 8

Strategic approaches - lessons learnt Important for insurance to be included in national strategy Financial consumer education works best if stakeholders work together as part of multi-stakeholder approach All different stakeholders have a role to play 9

Delivery design - lessons learnt Considerable experience already available – learn from others successes and failures Important to monitor impact Use insights from behavioural economics to target efforts Address consumer needs: life stage, life change event Start young and keep reinforcing Attach simple messaging 10

Delivery design - lessons learnt What worked well –Radio, TV, loyalty and freemium products –Multiple channel interventions What didn’t work so well –Poorly timed –Inappropriately targeted –Poor combination of product and knowledge 11 There is no one-size fits all approach - it is important to adapt to local circumstances.

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