Tuesdays with MEFIN

Capacity Development Module 8: Developing consumer protection for CDRI products

DRAFT Concept Note

Background:

Insurance growth in Vietnam, Indonesia and the Philippines (VIP) including for Climate and Disaster Risk Insurance, is still driven by traditional insurance agents and brokers that require personal contact and engagement with prospects and clients. With COVID 19, Governments across the three ASEAN countries have been forced to implement community lockdowns and quarantines to arrest virus infection. The lockdowns have not only limited COVID 19 transmission, but has also affected person to person insurance selling.

People movement in VIP in transit stations dipped by 31% on average in October compared to January – February 2020. People in retail and recreation reduced by 27% and Parks, lesser by 20%. On one hand, residential spaces gained 10% more people. People also purchased more online: 59% in Vietnam, 55% in Indonesia, and 41% in the Philippines.

These scenarios indicate that people in the three countries have become less mobile, have stayed at home more since February 2020 and are buying products via online. While more people have stayed at home, community quarantines have controlled home visits. In effect, COVID 19 has sped-up the development and adoption of InsurTech in the three countries to fill-in the vacuum of grounded insurance agents, due to the lockdowns.

InsurTech is expected to be used in marketing, underwriting and selling of insurance policies, including Climate and Disaster Risk Insurance Products while the COVID 19 pandemic is on-going. In fact, InsurTech companies have received significant investments in Singapore in recent months.

For example, Igloo, formerly Axina, an InsurTech company based in Singapore with operations in Indonesia, Malaysia, Thailand, the Philippines, and Australia which claimed to have served 15 million customers since inception; has raised USD 16 million in April to solidify current operations, and expand to Vietnam. General insurers in Vietnam have partnered with InsurTech companies Miin to focus on microinsurance; and INSO to provide among others, household accident and hospital fee insurance in rural areas. 9Lives, another InsurTech company, served group insurance for officials and employees.

In Indonesia, PasarPolis via the Gojek platform is providing insurance for parcels sent via GoSend the logistical partner of Gojek. It claimed to have issued 650 million insurance policies to first time insurance customers such as delivery couriers, ride-hailing drivers, and owners of small and medium enterprises in 2019. PasarPolis is also working on the development of habits and tendency-based pricing of health insurance, via its mobile application.

Objectives:

The objective of Capacity Development Module 8 is to discuss the specific features of consumer protection in selling Climate and Disaster Risk Insurance (CDRI) through InsurTech application. Specifically, this module will:

  1. Discuss the common set of data collected by InsurTech applications, necessary to underwrite CDRI products online.
  2. Define data protection related to InsurTech, from the perspective of technology providers.
  3. Discuss the benefits of collecting and storing personal data for insurance via InsurTech applications.
  4. Discuss the various risks to personal data collected and stored by InsurTech applications.
  5. Discuss in layman’s terms, InsurTech technology/ies, protocols or future advancements, that will be used to protect the personal data of InsurTech users, insurance providers, and insurance clients.

GIZ Regulatory Framework Promotion of Pro-Poor Insurance Markets in Asia III (RFPI Asia III) Capacity Development Module 8: Developing consumer protection for CDRI products

26 November 2020, 3:00pm - 5:00pm Philippines Time, Microsoft Teams


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Capacity Development Module 8: Developing consumer protection for CDRI products

Background:

Insurance growth in Vietnam, Indonesia and the Philippines (VIP) including for Climate and Disaster Risk Insurance, is still driven by traditional insurance agents and brokers that require personal contact and engagement with prospects and clients. With COVID 19, Governments across the three ASEAN countries have been forced to implement community lockdowns and quarantines to arrest virus infection. The lockdowns have not only limited COVID 19 transmission, but has also affected person to person insurance selling.

People movement in VIP in transit stations dipped by 31% on average in October compared to January – February 2020. People in retail and recreation reduced by 27% and Parks, lesser by 20%. On one hand, residential spaces gained 10% more people. People also purchased more online: 59% in Vietnam, 55% in Indonesia, and 41% in the Philippines.

These scenarios indicate that people in the three countries have become less mobile, have stayed at home more since February 2020 and are buying products via online. While more people have stayed at home, community quarantines have controlled home visits. In effect, COVID 19 has sped-up the development and adoption of InsurTech in the three countries to fill-in the vacuum of grounded insurance agents, due to the lockdowns.

InsurTech is expected to be used in marketing, underwriting and selling of insurance policies, including Climate and Disaster Risk Insurance Products while the COVID 19 pandemic is on-going. In fact, InsurTech companies have received significant investments in Singapore in recent months.

For example, Igloo, formerly Axina, an InsurTech company based in Singapore with operations in Indonesia, Malaysia, Thailand, the Philippines, and Australia which claimed to have served 15 million customers since inception; has raised USD 16 million in April to solidify current operations, and expand to Vietnam. General insurers in Vietnam have partnered with InsurTech companies Miin to focus on microinsurance; and INSO to provide among others, household accident and hospital fee insurance in rural areas. 9Lives, another InsurTech company, served group insurance for officials and employees.

In Indonesia, PasarPolis via the Gojek platform is providing insurance for parcels sent via GoSend the logistical partner of Gojek. It claimed to have issued 650 million insurance policies to first time insurance customers such as delivery couriers, ride-hailing drivers, and owners of small and medium enterprises in 2019. PasarPolis is also working on the development of habits and tendency-based pricing of health insurance, via its mobile application.

Objectives:

The objective of Capacity Development Module 8 is to discuss the specific features of consumer protection in selling Climate and Disaster Risk Insurance (CDRI) through InsurTech application. Specifically, this module will:

6. Discuss the common set of data collected by InsurTech applications, necessary to underwrite CDRI products online.
7. Define data protection related to InsurTech, from the perspective of technology providers.
Discuss the benefits of collecting and storing personal data for insurance via InsurTech applications.
Discuss the various risks to personal data collected and stored by InsurTech applications.
Discuss in layman’s terms, InsurTech technology/ies, protocols or future advancements, that will be used to protect the personal data of InsurTech users, insurance providers, and insurance clients.

Agenda

Time Activity /Topic Methodology Responsibility
02:45 – 03:00 Online Registration MS Teams All
03:00 – 03:05 Opening Remarks Speech Dr. Antonis Malagardis
Program Director, RFPI Asia III
03:05 – 03:10 Module Guidance Presentation Mr. Jimmy Loro
Senior Adviser, RFPI Asia III
03:10 – 03:20 InsurTech and Personal Data Protection: An Overview Presentation
03:20 - 04:40

Experts Panel Discussion and Open Forum

General Lead Questions:

1. How do InsurTech companies define Data Protection? What metrices/indicators prove that an InsurTech company is protecting personal data of its users with the highest standards?
2. What sets of consumer data are commonly collected by InsurTech companies to enable insurance underwriting including for Climate and Disaster Risk Insurance, sales, and claims online or using InsurTech?
3. What are the risks to clients, insurance companies, and brokers that use InsurTech including for CDRI? How are these risks managed or avoided?
4. What are the benefits of using InsurTech for Climate and Disaster Risk Insurance buyers, insurance companies, agents or brokers? Why should we use or shift to InsurTech?

Moderated Discussions, Dialogue. Lead Questions will be asked per Panelist.

Questions from Participants shall be sent via MS Teams Chat, on a first asked basis.

Panelists

Ms. Ann Cuisia (TBC)
Traxion
Philippines InsurTech Provider

InsurTech Provider

InsurTech Provider

Moderator/s:
GIZ RFPI Team

4:40 – 4:55 Webinar Polling Survey Feedback to the Webinar GIZ RFPI Team
04:55 – 5:00 Closing Remarks TBI

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