ULAANBAATAR, September 22: The GIZ-Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia (RFPI Asia), in cooperation with the Financial Regulatory Commission of Mongolia (FRC) and Monre Insurance LLC, will be conducting a seminar on “Risk Protection Mechanisms for SMEs to Strengthen Inclusive Insurance in Mongolia”. This will be held on October 5, 2016 in Ulaanbaatar City.
The seminar will be an opportunity for public and private sectors to meet and share experiences in inclusive insurance market development, particularly in expanding the type of intermediaries such as microfinance institutions. It will also explore possibilities of risk management options from the perspectives of SMEs. Officials from the Ministry of Finance, FRC, SME Development Fund of Mongolia will be sharing current and potential government support to inclusive insurance.
Invited to the seminar are representatives of government and non-government organizations, private companies, banking and non-banking institutions, SMEs and other stakeholders with interests and responsibilities on financing and risk protection especially for SMEs.
According to the Ministry of Labour, more than two-thirds of the 90,000 businesses registered in Mongolia are classified as SMEs. About 80 percent of them are very small firms with less than 10 employees. Although there are insurance companies in the country, no appropriate insurance product is offered for SMEs. This could be due to the lack of experience of insurance companies on this market.
The seminar is supported by the Mutual Exchange Forum on Inclusive Insurance Network (MEFIN), a collegial body of insurance regulators and policy makers in Asia. MEFIN serves as a platform of peer-to-peer learning as it develops and implements programs that provide mutual benefit to its members in advancing inclusive insurance solutions.
Mongolia is one of the current six member-countries of MEFIN after joining the Network in 2013. In 2014, the definition and new regulations requirements for inclusive insurance products in the country have been integrated into existing regulations. The participation of FRC and two insurance companies in the MEFIN Public-Private Dialogue event in Manila in July 2016 paved the way for a more effective cooperation in developing and promoting inclusive insurance in Mongolia.
The other members of MEFIN are the Philippines, Indonesia, Nepal, Pakistan and Vietnam.