Role of supervisors in design and implementation of PPIPs

Supervisors play a vital role in connecting government and industry in the design and implementation of PPIPs. By leveraging their relationships with insurers and their understanding of the insurance sector, they enhance coordination and alignment between public and private stakeholders. This helps advance disaster risk management and financing strategies while fostering innovative and effective insurance solutions.

A call to action: the role of supervisors in addressing protection gaps (section 3.5) outlines a range of key actions supervisors can take, including:

Advocating and facilitating discussions on PPIPs
Supervisors can facilitate discussions on the need for PPIPs by conducting research, publishing papers, and engaging with stakeholders. By identifying gaps in coverage and insurability challenges, they can encourage collaboration to address these issues and create solutions that meet public needs.

Contributing to the design of insurance programmes
Supervisors play a key role in shaping the structure, governance, and operational details of insurance programmes under PPIPs. By working closely with industry and government, they can help ensure these programmes are tailored to specific risks, financially viable, and aligned with policy objectives.

Supporting operationalisation through supervisory activities
Supervisors help operationalise PPIPs by monitoring the financial soundness of participating insurers, overseeing claims handling, and, where within their mandate, reviewing and approving insurance products. Their supervisory activities can help ensure that risk-sharing arrangements are sustainable and that any subsidised schemes are financially viable in the long term.

Addressing risks and ensuring sustainability
To maximise the effectiveness of PPIPs, supervisors address potential risks such as unsustainable fiscal burdens or poorly designed incentive structures. By supporting these schemes in delivering on their objectives, supervisors help close protection gaps and build public trust in insurance solutions.