Synthesis documents

Cape Town Conference: How Access To Finance Can Promote Formalisation, 2009 (A. Smith, Day 2, Afternoon Session)

    The following documents are intended as background materials for Anja Smith's contributions on 'How Access To Finance Can Promote Formalisation':

    1. National Treasury of South Africa, The Future of Micro-Insurance Regulation in South Africa, Discussion Paper, April 2008.
    This paper details South Africa's emerging framework for regulation of the micro-insurance sector. Written in 2008, it proposes the creation of a Micro-Insurance Act. This law would set out a lighter regulatory framework for micro-insurers than for other insurers, to reflect the need to limit the cost of regulation for low-premium products. The proposed law would also encourage alternative options to the micro-insurance license, for example underwriting and the captive cell mechanism.

    2. CGAP, Making Insurance Markets Work for the Poor: Microinsurance Policy, Regulation and Supervision - Evidence from Five Countries, 2009.
    This document presents the synthesis of five country case studies on the role of regulation in the development of micro-insurance markets. Drawing on research from Colombia, India, the Philippines, South Africa and Uganda, the paper proposes, among other things, that regulators adopt a market development mandate on top of their normal supervisory mandate.

    3. Chamberlain, Doubell, Hennie Bester and Christine Hougaard, Ensuring Mutual Benefit: The Role and Regulation of Member-owned Insurers, Focus Note 9, Microinsurance Network Policy, Regulation and Supervision Series, January 2009.
    This focus note explores the role and regulation of member-owned insurers in the microinsurance field. Much of the evidence is drawn from a study of five countries: Colombia, India, the Philippines, South Africa and Uganda. Among the perceived advantages of member-owned insurers are the simplicity and local relevance of their form, their ability to engender trust and their ability to tailor low-cost insurance to members' needs.

    4. Chamberlain, Doubell, Hennie Bester and Christine Hougaard, Informal Insurance: A Regulator's Perspective, Focus Note 10, Microinsurance Network Policy, Regulation and Supervision Series, March 2009.
    This focus note examines how regulators can best balance the need to protect consumers with the desire to encourage the development of a market for low-cost insurance. Among the report's interesting recommendations are that lower capital requirements are needed for entities providing micro-insurance, and that active microfinance rating agencies and dedicated micro-insurance support institutions can incentivise formalisation.

    Associated Activities and Documents
    Synthesis documents
    »Donor Committee Conference: Business Environment Reform and the Informal Economy, Cape Town, South Africa, 12-15 April 2010