IAA Releases Paper on Addressing the Gap in Actuarial Services in Inclusive Insurance Markets
The International Actuarial Association (IAA) is pleased to announce that it has recently sent to the International Association of Insurance Supervisors (IAIS) an issues paper on Addressing the Gap in Actuarial Services in Inclusive Insurance Markets which was developed by the Microinsurance Task Force of the Insurance Regulation Committee.
The paper outlines the current context and challenges in providing qualified actuarial resources in microinsurance markets and proposes a number of suggestions intended to address these challenges. The paper also explores avenues for further development and collaboration between the IAA and IAIS in this area.
A number of key issues in inclusive insurance markets were identified, such as:
- A need for suitably qualified or experienced professionals;
- Limited supply of actuarial capacity in microinsurance markets;
- A lack of understanding of the contribution that actuaries can make to microinsurance programmes; and
- The importance of balancing supply and demand for actuarial services.
The paper recognises that there is no single solution that will fit all situations and that each market’s particular characteristics will need to be taken into account when determining specific courses of action to address the need for and supply of actuarial resources. The paper also recognises that actuarial-type services can be, and in some places already are, provided by non-actuaries. The paper suggests some strategies to make the provision of actuarial services by non-actuaries and actuaries alike more robust and sustainable.
President Rob Brown said, "We are pleased to provide input to the Financial Inclusion Subcommittee of the International Association of Insurance Supervisors and support IAIS guidance with respect to the provision of actuarial services in microinsurance markets. We also hope that national and regional insurance regulators, national, bilateral, regional and international development organisations, and individual microinsurance providers or practitioners will find the paper of interest.”
To learn more about the work of the IAA on this topic, contact the Secretariat, care of the Chairperson of the Insurance Regulation Committee.