SMEs and Insurance in Mongolia · 2017-04-19 · • Development of one draft product for Mongol...

19/04/2017

Implemented by

19/04/2017 SMEs and Insurance in Mongolia

SMEs and Insurance in Mongolia

GIZ - Regulatory Framework promotion of Pro-

poor Insurance Markets in Asia II (RFPI Asia II)

Dr. Antonis Malagardis

Program Director

5 October 2016,

Ulaanbaatar

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Implemented by

19/04/2017 SMEs and Insurance in Mongolia

Outline

The MEFIN network

Public Private Dialogue (PPD)

RFPI II Business Advisory Group (BAG)

Achievements of BAG in Mongolia

Inclusive Insurance Market Development

Strategies

Inclusive Insurance Key figures by region (Asia,

Africa, Latin America)

SMEs environment and the role of insurance

April 19, 2017

The MEFIN Network

• Collegial body of insurance policy

makers and regulators

• Formed in May 16, 2013 in Cebu,

Philippines

• Signage of Cebu Declaration:

commitment to promote and develop

inclusive insurance markets

Regional Steering Committee (RSC) and Technical Working Groups (TWGs)

The MEFIN network - Structure

The MEFIN network - Structure

Provides strategic

direction,

approves policies

Provides content,

technical and

administrative

support

Develop and

implement

programs and

activities

April 19, 2017

The MEFIN Network - Objectives

1. Platform of peer-to-peer learning among policy makers and

insurance regulators

2. Development and Implementation of programs and

activities to advance inclusive insurance

3. Become sustainable and independent from project funding


April 19, 2017

The MEFIN Network - Composition

• New members may be accepted

• Network can accept member observers

(e. g. development partners, other MI stakeholders)


Principal members:

Indonesia, Mongolia, Nepal, Philippines,

Vietnam

+ Pakistan since 2016

April 19, 2017

Technical Working Group on Knowledge Management

Regional Steering Committee (RSC) and Technical Working Groups (TWGs)April 19, 2017April 19, 2017

TWG on Knowledge

Management

(TKM)

External Knowledge

Sources and Users

Technical

Consultants

GIZ-RFPI

Secretariat

MEFIN Regional

Steering

Committee (RSC)

Structure

MEFIN Technical Working Group on

Knowledge Management (TKM)MEFIN Regional

Steering

Committee (RSC)

TWG on

Regulation &

Supervision

(TRS)

TWG on

Business

Models

(TBM)

TWG on

Capacity

Development

(TCD)

TWG on

Knowledge

Management

(TKM)

MEFIN Members

Indonesia, Nepal, Mongolia, Philippines, Vietnam,

Pakistan

Secretariat

(GIZ-RFPI Asia)

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Implemented by

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Public-Private Dialogue (PPD)

• Twice a year activity of the MEFIN Network

• Brings the government and the industry together in

developing and promoting inclusive insurance

• Beneficial to both parties as evidenced in the development

of Microinsurance in the Philippines

• The PPD in Manila in July 2016 (with the active

participation of FRC and two mongolian insurance

companies) focused on the topics of Prudential

Regulation, Licensing, Distribution, and Supervision


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Implemented by

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GIZ RFPI Asia Business Advisory Group (BAG)

• BAG supports Public-Private Dialogues

• Assists selected insurance companies tailor/develop

insurance schemes and services in accordance with

Insurance Core Principles (ICPs) endorsed by the

International Association of Insurance Supervisors (IAIS)

• Guides regulators in incorporating guidelines to formalize

inclusive insurance business models

• Supports insurance companies to implement the

business models promoting client value & consumer

protection


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Implemented by

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• Development of one draft product for Mongol Daatgal

• Signing of MoU between Mongol Daatgal and GIZ

• Signing of MoU between Ulaanbaatar City Insurance and

GIZ

• Signing of MoU between Monre Insurance and GIZ (July

2016)

Achievements of the BAG in Mongolia

(June 2016)


Market Development Strategies

Public-private

collaboration

Genuine industry

dialogues

Public seminars

and consultations

Multi-stakeholders approach in MI advocacy

Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia (RFPI Asia) www.inclusiveinsuranceasia.com

http://www.inclusiveinsuranceasia.com/

Inclusive insurance key figures by regionLAC: 2014 Asia: 2014Africa: 2014

828 M 829 M756MGross written

premiums (USD)

26% 79%32%Claims paid

48.6 M 170.4 M61.8 M

Lives

covered

Types of

products offered

(millions of lives

covered, including

secondary covers)

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Implemented by

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SMEs environment and insurance in Mongolia


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Implemented by

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Official Definition of SME (according to the SME Law, 2007)

Small enterprises Medium enterprises

Manufacturing /

Processing

< 20 employees

< ₮ 250 million turnover < 200 employees

< ₮ 1.5 billion turnover Retail trade

< 10 employees

< ₮ 250 million turnover

Wholesale trade < 150 employees

< ₮ 1.5 billion turnover

Services < 50 employees

< ₮ 1.0 billion turnover


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Implemented by

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MSMEs in Mongolia, 2010(as per World Bank)


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58%

39%

3%

1-9 employees

10-50 employees

> 50 employees

Number of employees of participating SMEs


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Implemented by

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51%

3%

19%

24%

3%

Co. LTD

Cooperative

Partnership

Proprietorship

NGO

Legal forms of participating SMEs


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Implemented by

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19

18

16

2

18

Non insured (or noinformation)

Statutory insured (4 typesof social insurance)

Mandatory insured (car +driver liability insurance)

Voluntary insured (live+ property insurance)

Insurance coverage of selected SMEs

2000 - 2014


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Implemented by

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Insurance preferences for named risks


Critical success factors of inclusive

insurance• Government ownership of reform measures

• Jointly introduced schemes for consensus building (e.g. TWGs)

• Evidence-based insurance solutions as a feedback to adapt/generate regulations

accordingly

• Education and awareness campaigns for all stakeholders

• Donors coordination through active role of governments

Our global partners for risk assessment,

capacity building and knowledge sharing

to support inclusive insurance

MEFIN as a network of insurance

regulators and supervisors in Asia

• Explores high priorities in financial inclusion

• Highlights the role of education and consumer protection in supporting financial

inclusion

• Contributes to the development of evidence-based regulations through

thematic assessments

• Creates an open space for more countries in Asia to join and strengthen the

network

• Invites funding agencies to support the policy and regulatory country initiatives

to be taken

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Implemented by

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БАЯРЛАЛАА !!


www.inclusiveinsuranceasia.com

www.mefin.org

[email protected]

SMEs and Insurance in Mongolia · 2017-04-19 · • Development of one draft product for Mongol...

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