1. Lessons from Jamaica

2. Objectives To present insurance supervisor experiences on the implementation of regulatory and supervisory standards for inclusive insurance in Jamaica

3. Structure of Presentation Rounds 1 – 3: About Country Diagnostic Round 1: Findings on demand related issues Round 2: Findings on supply related topics Round 3: Findings on regulatory and supervisory topics

4. Structure of Presentation Rounds 4 - 6: Implementation to promote MI market development Round 4: Regulatory measures Round 5: Other measures/activities performed during the project Round 6: Challenges for the future

6. Findings on Demand-Related Issues Members of the microinsurance target market were interviewed in 16 Focus Group Discussions across the country When commenting on their most relevant risk protection needs, participants most frequently referred to reduced/no income due to sickness or injury Many respondents (who were primarily blue collar workers) also voiced concerns about the possibility of their own accidental death/injury on the job and its impact on their families

7. Findings on Demand-Related Issues Most respondents had no risk coping strategy in mind Among those who had a strategy, insurance was far less popular than other coping mechanisms such as relying on family, savings and additional income from odd jobs

9. Findings on Supply Related Issues Three of Jamaica’s fifteen insurers (at the time of the country diagnostic) offered products that were considered “microinsurance” for the diagnostic One company offered products designed specifically for the target market The other two companies offer products that reach the target market, but which have not been officially considered as “microinsurance”

10. Findings on Supply-Related Issues These insurers have reported mixed experiences Reported negatives include: lack of premium payment, high claims ratios Reported positives include: significant uptake using less expensive, non-traditional distribution channels

12. Findings on Regulatory and Supervisory Topics The diagnostic report highlights 4 regulatory obstacles : 1. Only insurers, brokers and sales representatives can distribute insurance products 2. Separation between the companies that can offer life and non-life products could limit the potential for bundled products 3. The regulatory treatment of potential transactional platforms such as mobile money is unclear 4. The approval process differs for life versus non-life policies

13. Findings on Regulatory and Supervisory Topics The report also shows how attempts to solve a regulatory problem may, as an unintended consequence, create a barrier Example: As an alternative to the slow process of updating acts and regulations, the FSC supplements the existing legislation by issuing regulatory bulletins and guidelines as needed An unintended consequence is that the potential exists for confusion among stakeholders who do not refer to the most current documents

15. Regulatory Measures It has become increasingly clear that the existing insurance legislation cannot accommodate the special characteristics of microinsurance As a result, Jamaica has decided to adopt specific microinsurance regulations

16. Regulatory Measures The proposed microinsurance regulation will address (among other areas): Definition of Microinsurance Microinsurance Product Approval Process Requirements for Microinsurance Intermediaries Consumer Protection

18. Other Measures/Activities In addition to these regulatory measures, Jamaica has undertaken other activities to: Encourage providers to recognize MI potential by: Collaborating with the insurance industry through the Inclusive Insurance Committee Facilitating capacity-building session with the Micro Insurance Centre

19. Other Measures/Activities Promote consumer demand for MI by: Hosting Inclusive Insurance Events (that encourage financial education and interaction among the insurance providers and the target market) Increasing Financial Education through programmes such as the FSC Minute

21. Challenges for the Future To encourage microinsurance market development, the FSC plans to continue to: Partner with the industry, including through the Inclusive Insurance Committee Promote financial education, including through the media most utilized by the target market