Stakes and Challenges for REGULATING Mobile

Transcript:Stakes and Challenges for REGULATING Mobile:
Stakes and Challenges for REGULATING Mobile Insurance: THE CAMEROON CASE Presented by DJOUMESSI DONTSA Fabrice James Under-Director of Technical Resource Management and Universal Service Mobile Insurance Workshop, Abidjan, 16-17 May 2016 Presentation Outline Introduction The Stakes Involved in Mobile Insurance Challenges Involved in Regulating Mobile Insurance Conclusion and Prospects Stakes and Challenges for REGULATING Mobile Insurance: THE CAMEROON CASE 2 Mobile Insurance Workshop, Abidjan, 16-17 May 2016 I. Introduction In Africa, despite the efforts to clean up and modernise the insurance, banking and finance sectors, a large proportion of the population is still deprived of access to the basic products and services in these sectors because of the prices or rates applied, which are very often deemed to be unaffordable to such an extent that these products and services are seen as “luxuries.” Generally speaking, the insurance penetration rate (health, life, death, homeowner’s or renter’s insurance, etc.) is approximately 2%, the rate of bank service utilisation is low, and less than 20% of households have access to classic financial services (Source: World Bank reports, insurance sector stakeholders). This situation limits populations’ capacity to anticipate and manage the various risks that hinder social mobility and households’ and companies’ capacity to protect themselves against certain—sometimes unpredictable—shocks (illness, accidents, death, food insecurity, job loss, natural disasters, etc.), and thus contributes to perpetuating a vicious cycle of poverty. In Africa, the legal supervision of the provision of M-services (mobile insurance, mobile banking, and mobile financial services) is still embryonic, and the absence of harmonised Telecom/ICT regulations across countries does not facilitate their development. 3 Stakes and Challenges for REGULATING Mobile Insurance: THE CAMEROON CASE Mobile Insurance Workshop, Abidjan, 16-17 May 2016 I. Introduction (cont.) The lack of access to appropriate, diverse services in the banking, finance and insurance sectors limits both investment opportunities and the development potential of micro, small and medium enterprises, which make up an important part of the productive fabric of the economy, notably when it comes to stimulating growth and job creation. When they are affordable, competitive and suited to the everyday needs of people and economic agents, insurance products and financial and banking services can greatly contribute to improving quality of life, reducing inequalities, and fostering growth and economic and social development. Unlike the insurance penetration rate and bank access rate, the mobile phone penetration rate in Africa is very high—over 70% on average (Source: ITU). Africa can therefore