minutes - mefin 4_sample_minutes_twg_meeting... · minutes of the mefin technical working group...

Implemented

Minutes

of the MEFIN Technical Working Group Meeting

Prepared by: GIZ RFPI Asia II, MEFIN Secretariat

Annex 4

Contents

1. Introduction .......................................................................................................................................... 3

2. Agenda .................................................................................................................................................. 3

3. Participants ........................................................................................................................................... 3

4. Accomplishments, January to June 2016 .............................................................................................. 5

5. Revisiting the results of the PPD ........................................................................................................... 9

6. Separate meetings per Technical Working Group .............................................................................. 11

7. TWGs’ Work Plans Review .................................................................................................................. 11

8. Issues to be discussed within the Regional Steering Committee ....................................................... 12

9. Closing Statement ............................................................................................................................... 13

1. Introduction

The Mutual Exchange Forum on Inclusive Insurance Network (MEFIN Network) aims to achieve

sustainable inclusive insurance growth in Asia. Its current members are Indonesia, Mongolia, Nepal,

Pakistan, Philippines and Vietnam. The programme has established four Regional Technical Working

Groups (TWGs) on Regulation and Supervision, Business Models, Capacity Building and Knowledge

Management. One of the meetings of the TWGs was hold in Manila, Philippines, on 13 July 2016.

2. Agenda

8:45 AM

Joint Meeting:

1. Reporting of accomplishments vs work plans, pending items

2. PPD: Challenges and the way forward

10:00 AM Health break

10:15 AM Individual Meeting per TWG

3. Work Plans for July – December 2016

11:00 AM

Joint Meeting

4. Presentation of revised work plans

5. Issues resulting from TWG for decision by the Regional Steering Committee

3. Participants

Regulation and Supervision

- Ms. Battsetseg Nasanbat, Sr. Policy Officer, Insurance Products Dev. Division, FRC, Mongolia (Lead)

- Mr. Dante Portula, Senior Advisor, GIZ RFPI Asia II, (MEFIN Secretariat)

- Mr. Mochamad Muchlasin, OJK Director, Indonesia

- Mr. Syed Nayyar Hussain Zaidi, SECD Director Insurance, Pakistan

- Observing Industry Members:

o Mr. Dip Prakash Panday, Shikhar Insurance, CEO, Nepal

Knowledge Management

- Mr. Tariq Bakhtawar, Director Insurance, Securities and Exchange Commission of Pakistan (Lead)

- Mr. Alexander Tabbada, Senior Advisor, GIZ RFPI Asia II, (MEFIN Secretariat)

- Ms. Le Thi Mai Linh, Life Supervision Division, ISA Vietnam

- Observers:

o Mr. Jakub Nugraha, PT Asuransi Central Asia, Indonesia

o Ms. Trinh Bich Ngoc, ManuLife, Head of Operations, Vietnam

o Ms. Raquel Capio, GIZ ProGED

o Ms. Melina Labao, CARD Pioneer, Philippines

Capacity Building

- Prof. Bahadur Fatta, Beema Samiti, Nepal (Lead)

- Mr. Jimmy Loro, Senior Advisor, GIZ RFPI Asia II, (MEFIN Secretariat)

- Mr. Shreeman Karki, Director Beema Samiti, Nepal

- Ms. Wilma Conde, Microinsurance Division, Insurance Commission, Philippines

- Ms. Loida Zaragoza, Microinsurance Division, Insurance Commission, Philippines

- Observers:

o Ms. Nguyen Huyen Trang, Agricultural Insurance, BaoViet, Vietnam

Business Models

- Commissioner Emmanuel F. Dooc, Philippines

- Ms. Shayne Rose Bulos, Acting Division Manager/Supervising Insurance Specialist – Microinsurance

Division, Philippines(Lead)

- Dr. Antonis Malagardis, Programme Director, GIZ RFPI Asia II, (MEFIN Secretariat)

- Observers:

o Mr. Mr. Yoga Prasetyo, PT Asuransi Allianz Life, Indonesia

o Mr. Bat-Ulzii Taivan, Mongol Daatgal National Insurance Co., Mongolia

o Mr. Vivek Jha, CEO Nepal Life, Nepal

o Atty. Francis Paul Fernando, IC Philippines

o Ms. Corinna Mueller, Consultant

- Mr. Surya Prasad Acharya, Joint Seceratry, Ministry of Finance, Nepal

4. Accomplishments, January to June 2016

The session was started by the presentation of the accomplishments of each TWG during the first

semester of 2016.

Regulation and Supervision (presented by Mr. Dante Portula)

MILESTONE ACTIVITY STATUS

1. TWG regulator members agreed to implement 2 types of regulatory instruments in their respective jurisdictions

Conduct and analyze Self-Assessment (SA), publish aggregate report

SAs were conducted by NP, MN, PH, VN, PK. The Secretariat has supported the countries in their SA process through consultation calls. Preparation of aggregate report for publication is ongoing.

Develop action plan based on SA Action plan of each country, focusing on informal insurance, were discussed in the SA seminar in Nepal on May 2016.

Adopt the Diagnostic Toolkit Against Natural Catastrophes to national environment

Pending

2. List of common RIA indicators across MEFIN countries agreed upon

Define RIA indicators and gather RIA figures in per country

RIA indicators, following the experience of the Philippines, were discussed during the RIA seminar in Kathmandu in May 2016

3. Members of insurance industry associations are engaged in the TWG work

Profiling of industry associations in member country and invitation of the industry representatives to the TWG meetings

Update on profiling pending Industry associations and members were invited to the July 2016 MEFIN TWG meetings

4. Meeting of TWGs Participate in scheduled meeting (Bangkok, Mar 2016)

The TRS met in Bangkok in March 2016

Discussions

Regulatory Impact Assessment (RIA)

Mr. Surya Prasad Acharya from the Ministry of Finance (MoF) of Nepal commented that there is a need

for global diagnostic indicators so that every country can prepare similar and comparable data. The

knowledge –based information and tools should be uploaded on the website so that they are easily

accessible to all member countries.

Dr. Antonis Malagardis remarked that the International Association of Insurance Supervisors (IAIS)

already provides indicators for diagnostic studies that can be downloaded from their website. In the

Philippines, RIA had been carried out two years ago reflecting the results of 10 indicators, that were

mostly relevant for the insurance business. MEFIN is now using these indicators for the draft study for

Pakistan and will try to make it available on the website for its members.

Widening of the MEFIN Network

Commissioner Dooc said that in some countries the authority of the regulator encompasses more than

just insurance; for example banking. In the Philippines the IC is also the primary regulator for pre-need,

but this is a special case and other countries might not have other situations. So it is necessary to define

if just insurance should be included or whether MEFIN can be more comprehensive. Mr. Dante Portula

agreed that he would also include micro pre-need in the discussion.

Cooperation between actors

Mr. Dante Portula added that the Philippines is very unique, also in terms of coordination between the

different institutions. This makes it easier to implement new regulations. Commissioner Dooc confirmed

that in this unique setup, one circular can be issued jointly by various regulators that are affected by it.

For example for formalization, only one circular was signed in the Philippines and the enforcement was

comprehensive. The experience is great and should be replicated in other countries. The inter-regulator

coordination should be an item to prioritize in the succeeding months.

Knowledge Management (presented by Mr. Alexander Tabbada)


1. Developed instruments by TBM and TRS are shared through the platform (website)

Check and upload prepared documents

With the assistance of the MEFIN Secretariat, 3 PH business models were developed by the TBM. These were shared to MEFIN members through during the training event in Bangkok in March 2016 pending the operation of the MEFIN website

Design official MEFIN logo and format for MEFIN publications

Official MEFIN logo and format for Factsheets were developed for approval by the RSC

2. MEFIN web platform established and functioning

Design platform The MEFIN web page was designed and established together with an IT consultant. Initial design was prepared by the Secretariat and presented to MEFIN members during the RFPI Asia II Kick Off Meeting in Ho Chi Minh in January 2016.

Maintain the operation of the platform

The website will be formally launched during the MEFIN organizational meeting in July 2016. Maintenance of operation will be discussed during the said meeting.


The TKM met in Bangkok in March 2016

Discussions

MEFIN Website

The Login Data for the accessing the internal area of the website was provided to all RSC and TWG

members. If the industry becomes member of MEFIN, they will also receive access.

Peer-Review

Mr. Surya Prasad Acharya asked whether it is possible to include the mechanism of peer-review as an

approach into the implementation of Knowledge Management Initiatives.

Capacity Building (presented by Mr. Jimmy Loro)


1. Development of trainings following international standards

Develop training modules on SA and RIA

Training modules on SA and RIA were developed by the Secretariat

Carry out trainings on SA and RIA Trainings on SA and RIA were conducted during the SAARC Nepal event in May 2016

2. Insurance industry associations in MEFIN countries agreed to participate in the dialogue events

Invite MEFIN members, including private sector in Asia

Invitations to the 1st

Public-Private Dialogue (PPD) scheduled for July 2016 were sent and were responded to positively by 33 from public and 28 private sector representatives from MEFIN network countries

Documentation of events including emerging policy recommendations, forward to TKM and TRS

Preparations were done for the July 2016 PPD. Documentation of the 1st PPD will be sent to MEFIN members for comments/ reference


The TCB met in Bangkok in March 2016

All activities have been fully completed.

Business Models (presented by Dr. Antonis Malagardis)


1. Insurance Industry Associations in MEFIN countries agree to participate in the dialogue events (PPD)

Map and analyze business models

3 business models in PH, 2 business models of MN and 2 of NP have been mapped, analyzed and documented in February and June 2016

Presentation of business models in the bi-annual MEFIN dialogue event

3 business models in PH, 2 business models of MN and 2 of NP will be presented during the MEFIN Public-Private Dialogue scheduled in July 2016

2. Insurance industry agreed to contribute experience and to co-publish KM materials

Development and publication of case studies on business models, and factsheets on best practices

3 PH business models/best practices were shared by the insurance industry and developed as Factsheets by the TBM. These were shared to Network members during the training event in Bangkok in March 2016


The TBM met in Bangkok in March 2016

One of the outputs related to the work of the TWG on Business Models is to come up with fact sheets.

Therefore Dr. Antonis Malagardis presented the current state of the factsheets and was supported by

two representatives from the respective companies, Mr. Dip Prakash Panday from Shikhar Insurance and

Mr. Vivek Jha from Nepal Life.

Exclusions

Since one fact sheet described a product that excluded beautification, Commissioner Dooc suggested

excluding “elected surgery” in order to have a more comprehensive exclusion. In addition, the Philippine

products do not exclude “self-inflicted injury” anymore, but instead just define the term “accident” in

order to avoid the exclusion. This is important, if the regulator has limited the number of exclusions for

microinsurance.

Factsheets

Dr. Antonis Malagardis raised the issue that similar fact sheets should be developed for all countries

such as Allianz in Indonesia, but also BaoViet and ManuLife in Vietnam and others. This should happen

during the following six months. The representatives of both Vietnamese companies, Ms. Trinh Bich Ngoc

and Ms. Nguyen Huyen Trang agreed that the fact sheets represent a good way to share experiences. Ms.

Trang added that BaoViet is especially interested in designing agricultural insurance. Mr. Yoga Prasetyo

confirmed that the information of the fact sheets is inspiring and will help in their own design of business

models, after some adaptations. The fact sheets provide the main message, create new ideas, and enable

to learn from the failures - not just from the success. He also wants to learn more about agricultural

insurance, either indemnity based or weather index based, and how it can be applied for certain crops.

Mr. Mochamad Muchlasin added that the factsheet could be updated with latest numbers.

Successful Business Models

Commissioner Dooc suggested recognizing the best innovation at the end of the year in terms of

product and process. If products or business models work well in one country, they can be copied by

other countries with some minor modification.

5. Revisiting the results of the PPD The challenges resulting from the PPD of the previous day were presented by the moderator:

PRUDENTIAL REGULATION

CHALLENGE WAY FORWARD

Formalization of informal insurance

activities

Promulgate appropriate regulation per country to

encourage formalization of informal insurance

activities

Harmonization and streamlining of

regulations

Strengthen coordination among regulators and other

line agencies

Issues / Concerns re Core MI thematic

areas: products, profitability, technology,

promotion etc

Find appropriate country specific business model

LICENSING


Application for insurance agents Simplify application for insurance agents by keeping

requirements to the minimum

MI licensing Streamline MI licensing procedures and requirements

AMLAC regulations Improve coordination among regulators and other line

agencies to standardize requirements

DISTRIBUTION


Widening of distribution channels Identify country appropriate non traditional

distribution channels including those employing digital

technologies

Regulation of non traditional distribution

channels including provision of incentives

to intermediaries

Promulgate suitable regulations proportionate to non

traditional distribution channels

Low level of awareness on the value of

insurance

Develop and implement financial literacy programs

with MI focus

BUSINESS MODELS


Data management (i.e. reportorial

compliance; monitoring and information

on industry and market situation)

Develop / Implement reporting standards consistent

with country needs

Cumbersome and overlapping monitoring

and reporting requirements demanded by

regulators

Issuance of joint circulars on harmonized

requirements for oversight, reporting and monitoring

requirements

Licensing

Ms. Trinh Bich Ngoc from ManuLife Vietnam asked the other countries to share their experience or the

practice in other countries. Commissioner Dooc replied that in the Philippines, the regulation is very

strict: the company must be registered, and the product and the agent must be registered. We require

prior approval if it will be adapted by another microinsurance company. Even if a company just borrows

a product, this product will be branded under the new name and has to be licensed again. The approval

process generates revenues for the IC. The IC does not receive any budget from the government. Every

time an insurer submits a product for approval, the IC charge fees and is therefore self-sufficient. For

microinsurance, the fee is reduced to 50% of the usual amount which represents another example for

proportionality. Mr. Syed Nayyar Hussain Zaidi from the regulator of Pakistan shared that the SECP requires

prior review, but also post implementation certificates.

Business Models - Timely settlement of claims

Mr. Surya Prasad Acharya stated that in his opinion the biggest challenges are on the supply side the

coverage and on the demand side the timely settlement of claim. He suggested to bring this question up

in the RSC meeting to see how it is handled in other countries.

6. Separate meetings per Technical Working Group

Each TWG met separately to discuss the Work Plan for the following six months.

7. TWGs’ Work Plans Review

The four TWGs proceeded to the review and enhancement of the 2016 second semester Work Plans.

The enhancements proposed by the TWGs, for presentation at the RSC, were the following.

Business Models:

For Milestone 1 – 1) improve existing business models in Mongolia and Nepal; 2) develop new

business models for Indonesia.

For Milestone 2 – 1) DC-oriented prototype; 2) Conduct of relevant trainings.

For Milestone 3 (November 2016) – 1) improve current fact sheets of Nepal and Mongolia; 2)

Fact sheets to be developed for Vietnam, Indonesia and Pakistan.

Knowledge Management

1) Prepare guidelines on publishing documents in the website (July to September 2016);

2) Prepare templates / formats to go with the guidelines;

3) Encourage preparation of lessons learned in fact sheets (not just success stories);

4) Facilitate inquiries in the website (start with PPD topics discussion).

In plenary, it was agreed that a month should be spent to come up with guidelines on what to share

in the website (e.g. news clips) and to identify the gaps. These should facilitate the populating of the

website for more effective use by the member countries.

Capacity Building

1) Develop a module and conduct a training on MI prototype product allowing country specific

requirements;

2) Pilot products – life and non-life products - based on existing products in MEFIN countries and

improved and adapted to local requirements in close coordination with the TWG on Business

Models;

3) TCB to work out the venue, participants (mix of regulators and private sector), content,

resource speakers, and duration of trainings based on expressed expectations.

Regulation and Supervision

Indonesia –

o 1) Submit self assessment by next week;

o 2) Have a draft distribution channel by October 2016;

Mongolia (FRC)

o 1) Have a revised inclusive insurance definition of MI by September 2016;

o 2) Have a draft supplemental regulation about distribution channels by October 2016;

Nepal

o 1) Issue distribution channel directive on MI intermediaries by September 2016 (for further

discussion);

Philippines

o 1) issue regulation on distribution channels and consumer protection by September 2016;

Pakistan

o 1) enhance regulatory MI framework by October 2016.

It was suggested at the plenary that the TRS would consider adding activities on supervision, e.g.

reporting.

8. Issues to be discussed within the Regional Steering Committee

The presentations also generated some topics and issues that were deemed appropriate for discussion

at the RSC. They include the following.

Should the work of the MEFIN Network include MI only or should it be opened to also include

micro pre-need, micro HMO etc?

Annual recognition for the best products and best processes in the MEFIN Network.

Further simplification of ‘Know Your Customer’ by regulators.

Criteria for private sector membership to the TWGs – to perhaps include 1) evidence of

willingness to be actively engaged and 2) official nomination by the concerned country

regulator(s).

Come up with global indicators for financial inclusion to standardize dbase and diagnostic

initiatives in MEFIN countries. RIA and IAIS tools will be available in the website. Identification of

other documents to be included in the website for sharing should be done. Establish the peer

review mechanism particularly for the development of knowledge products.

Cover both success and failure stories in the website. Fact Sheets as ‘living’ documents to evolve

through time to be able to capture impacts and results of business models / products.

Challenges in the areas of licensing of intermediaries and streamlining procedures for product

development.

9. Closing Statement

Dr. Antonis Malagardis, in his closing statement, expressed satisfaction at the result of the TWG Meeting

as it accomplished meaningful outcomes. He looks forward to the RSC Meeting in the afternoon where

recommendations from the TWGs will be picked up, discussed and hopefully approved for

implementation.

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