Report 9th International Microinsurance Conference 2013 Insurance for emerging consumers 12 –14 November 2013 Jakarta, Indonesia Edited by Zahid Qureshi and Dirk Reinhard Report 9th International Microinsurance Conference 2013 Contents 1 Acknowledgements 39 Agenda Day 2 afternoon sessions 3 Agenda Day 1 morning sessions 40 Parallel session 5 Pre-conference seminars Microinsurance in Indonesia 4 1st Consultative Forum on 42 Parallel session 6 business models, distribution and Technology their regulatory implications 45 Parallel session 7 8 Pre-conference seminar Health 1 Scientific evaluation methodology 47 Parallel session 8 11 Agenda Academic research 1 Day 1 afternoon sessions 50 Plenary 3 12 Opening and The role of microinsurance in welcome addresses achieving universal health coverage 14 Opening remarks 53 Agenda Day 3 morning sessions 16 Keynote address 54 Parallel session 9 20 Plenary 1 Failures Distribution 56 Parallel session 10 23 Agenda The business case for microinsurance Day 2 morning sessions 59 Parallel session 11 24 Plenary 2 Education The landscape of microinsurance in Asia and Oceania 62 Parallel session 12 Catastrophe risks 28 Parallel session 1 Distribution: selling 64 Parallel session 13 microinsurance profitably Takaful 31 Parallel session 2 68 Parallel session 14 Drivers of scale Life 34 Parallel session 3 71 Parallel session 15 Agriculture Health 2 36 Parallel session 4 74 Parallel session 16 Impact investment Academic research 2 77 Agenda Day 3 afternoon sessions 78 Plenary 4 Business case and client value: the magical balance 81 Conference closure 82 Field trip 84 Countries represented 86 Participating organisations 88 Acronyms Conference documents and presentations are available online at: www.microinsuranceconference.org / 2013 Links: Munich Re Foundation www.munichre-foundation.org Microinsurance Network www.microinsurancenetwork.org Report 9th International Microinsurance Conference 2013 1 Acknowledgements New figures on the status of The Financial Services Authority microinsurance in Asia and Oceania of Indonesia (OJK) and the Insurance were presented at the 9th International Council of Indonesia (DAI) provided Microinsurance Conference which outstanding support and guidance to took place from 12–14 November 2013 make this conference an extremely in Jakarta. The good news is that over well-attended event and a true 170 million people today have some success. We would especially like to sort of microinsurance in Asia, and the thank Commissioner of Insurance growth rate is impressive. However, Firdaus Djaelani, Muliaman D. insurance for the poor remains Hadad, Chairman of OJK Board of 1 practically unavailable in many Commissioners, and DAI Chairman countries. Billions of people still lack Kornelius Simanjuntak. It was a access to inclusive financial services – great pleasure to experience the a challenge for development introductory workshop on the day organisations, the insurance industry before the conference began, which and also the regulatory authorities was attended by an additional which, in many countries, are now 250 Indonesian experts, and most willing to take the first steps towards particularly also the launch of the creating an enabling environment for “Indonesian Grand Design for microinsurance. Microinsurance”. The conference 2 dinner was a truly special event 1 — Craig Churchill, Chairman, The conference was therefore proud and the participants also very Microinsurance Network, to launch the “1st Consultative Forum much appreciated the organisation ILO/Microinsurance Innovation on microinsurance business models, of another interesting field trip. Facility, Switzerland. risks and regulatory implications”. We would also like to express our 2 — Dirk Reinhard, In this new format, the International appreciation to Mr. Indra Situmeang Munich Re Foundation, Microinsurance Conference renews its who acted as the key contact between Germany. commitment to provide a key platform the Conference Steering Committee for discussion between regulators and and the local Indonesian organising practitioners. We would therefore like committee, and worked night and to thank the International Association day to make the event a success. of Insurance Supervisors (IAIS), the Without his outstanding support, Access to Insurance Initiative (a2ii), the conference would not have GIZ and the Microinsurance Network been possible. for their ongoing commitment to drive the discussion in the field of A conference of such magnitude regulation. needs a lot of people working behind the scenes. The local organising committee and the Munich Re Foundation conference team – Analisa Gradim Pedro, Paula Jiménez, Petra Hinteramskogler, Christian Barthelt, Torsten Kraus – did an amazing job in organising another exceptional event. A special “thank you” goes to Thomas Loster, Chairman of the Munich Re Foundation, to the Executive Director of the Microinsurance Network, Véronique Faber, and to the entire team of the secretariat of the Microinsurance Network for its great support. Report 9th International Microinsurance Conference 2013 2 Acknowledgements We would like to especially mention The 2014 International Microinsurance This report is the summary of the this year’s great team of rapporteurs – Conference will take place in Mexico. 9th International Microinsurance Conference that took place in Jakarta, th Laura Budzyna, Shoshana Grossman- It will be the 10 event, a clear sign Indonesia on 12–14 November Crist, Heidi McGowan, Marlene of the continued importance of 2013. The conference was hosted Mueller and Saut Sagala – led by insurance for the poor as a safety by Munich Re Foundation and the Microinsurance Network with Zahid Qureshi, who volunteered to net against diverse risks and as a the support of the Indonesian take on the difficult task of gathering valuable contribution to sustainable Financial Services Authority (OJK), and documenting the key messages development. Although we have the Indonesian Insurance Council (DAI), the Deutsche Gesellschaft and lessons from the various sessions seen substantial growth, many für International Zusammenarbeit of the 2013 conference. challenges still remain, including the (GIZ) on behalf of the German extension of basic financial services Federal Ministry for Economic Our appreciation also goes to the Development and Cooperation to the billions of low-income people over 400 participants from nearly (BMZ), the Georgia State University who still lack access. Together with Center for the Economic Analysis of 60 countries, and especially to the Microinsurance Network and the Risk (CEAR), the World Bank/IFC and the 80 speakers, for sharing their the PharmAccess Foundation. The partners who have supported the knowledge and experience and presentations were made in different conference, Munich Re Foundation styles, and individual summaries making the discussions lively and will continue to play its role in in this collection of reports reflect thought-provoking. On behalf of the that difference. Readers, authors providing a discussion platform to organisers, we would like to thank or organisers may not share all help achieve the goal of inclusive opinions expressed or agree with the 18 members of the conference financial services for all. the recommendations given – which, steering committee. This event would however, reflect the rich diversity of not have been possible without their Dirk Reinhard, Vice-Chairman Munich the discussions. work in identifying suitable speakers Re Foundation, Germany, Chairman of and presentations from the almost the Conference Steering Committee 150 applications submitted during the Craig Churchill, Chairman, preparations for this conference. Microinsurance Network, and Team Leader of the ILO/Microinsurance Innovation Facility Munich, Geneva, April 2014 3 — Over 400 participants from around 60 countries attended the 9th International Microinsurance Conference. 3 Report 9th International Microinsurance Conference 2013 3 Agenda Day 1 morning sessions 12 November 2013 1st Consultative Forum on Pre-conference seminar – business models, distribution Scientific evaluation and their regulatory implications methodology Firdaus Djaelani Behavioural tools for evaluating Commissioner of Insurance, insurance products OJK, Indonesia Glenn Harrison Peter van den Broeke Chair, Risk Management and Member of the Secretariat, Insurance, Georgia State IAIS, Switzerland University, USA Stefanie Zinsmeyer Project Manager, Access to Experimental methods applied Insurance Initiative, Germany to insurance demand Arman Oza Todd Swarthout CEO, VimoSEWA, India Assistant Research Professor, Georgia State University, USA Ferdinand Florendo Deputy Insurance Commissioner, Insurance Commission, Practical lessons for field The Philippines evaluations of insurance products Luc Noubissi Insurance Supervisor, Inter-African Conference on Insurance Markets (CIMA), Gabon Al-Malik Khoja Microinsurance Manager, Jubilee Life Insurance, Pakistan Israel Kamuzora Commissioner of Insurance, Tanzania Tomas Mayoralgo Programme Director, Microinsurance Mapfre, the Philippines Richard Leftley CEO, MicroEnsure, UK Jeremy Leach Director, Bankable Frontier Associates – Cenfri, South Africa Véronique Faber Executive Director, Microinsurance Network, Luxembourg Facilitator Arup Chatterjee Senior Financial Sector Specialist, Asian Development Bank, The Philippines Report 9th International Microinsurance Conference 2013 4 1st Consultative Forum on business models, distribution and their regulatory implications