The International Association of Insurance Supervisors (IAIS) has published a revised issues paper1on conduct of business in inclusive insurance, following feedback received during consultation. The IAIS uses the term “inclusive insurance” in the broad sense of the word, denoting all insurance products aimed at the excluded or underserved market, rather than just those aimed at the poor or a narrow conception of the low-income market. The paper looks specifically at the low-income or lower middle income due to specific requirements in terms of service and consumer protection.

Conduct of business supervision in inclusive insurance aims to ensure suitable conduct of business by insurers in order to protect the interests of inclusive insurance customers, where the need for providing consumer value is particularly relevant. The IAIS considers that, as these customers are often first time users of insurance, it is essential to establish and maintain their confidence in the insurance industry.

The aim of IAIS’ paper was to provide an overview of the issues relating to conduct of business in inclusive insurance markets that affect the extent to which customers are treated fairly, both before a contract is entered into and through to the point at which all obligations under a contract have been satisfied. Where insurers are launching new products that specifically address the needs of the “inclusive insurance” market, this IAIS paper could be a helpful summary of the supervisory approach they are likely to encounter when doing so.