This South African National Treasury discussion paper on microinsurance sets out the proposed new approach to the regulation of microinsurance. The proposed approach seeks to balance the need for consumer protection with financial inclusion and reduce the impact of the cost of regulation on the market. It also proposes changes to the way market conduct and intermediaries are regulated in the low-income market.

Cenfri team members were involved in developing the discussion paper as part of the team with Genesis Analytics.

At its base, the paper recognises that insurance could have an important role in reducing the vulnerability of poor people. Protecting the poor out of the market is, therefore, neither in the interests of the consumer nor business.

The paper was released in April 2008 and is currently in a period of public consultation before translating the proposed framework into concrete proposals on legislative changes.