Нэмэгдсэн: 2017-09-26 10:20:00

Dear Guests;

Representatives of financial and insurance regulatory authorities,

Policy-makers, Regulators, and Supervisors,

Participants of Asian insurance markets and investors,

Ladies and Gentlemen,

 

 

Inclusion. This is the new vision of global financial market development.

Finance is an essential function for performing any economic activity and inseparable part of our daily lives. Regardless of one’s social standing, level of education, race, religion, age, gender, residence, business industry or revenue, everyone should have access to financial services. Not only that, one should have convenient and easy access to a range of financial services tailored for everyone’s needs and with the best possible conditions.

Unfortunately, in Asia—where 60% of the world’s population live, access to financial services remains relatively limited, in particular, for the poor, low and middle income people, owners of small and medium enterprises, household product manufacturers, farmers, and fishermen. In Mongolia, herders living in remote regions have minimal access to financial industry information and hardly possess any understanding of securities market, and remain unfamiliar with insuring their livestock against risks of natural disasters; severe weather conditions such as snow blizzard and drought which are common occurrences in Mongolia. 

As of end 2016, over 20% of Mongolians were considered to have been under the poverty line. According to quarterly report published by the National Statistical Office, the number of catastrophe incidences, crime and accident rates have risen over the past few years and the estimated damage to individuals and organizations resulted from these incidents has also increased.

The “Sample Survey on Small and Medium Enterprise Owners“ conducted by the Mongol bank last year identified unemployment, poverty, political instability, foreign exchange rate fluctuations, bureaucracy in public services, inflexible loan conditions, and high interest rates and commissions as common risk factors and barriers to profitable business. This indicates that insuring one’s property against potential risks is the practice that needs to be adopted by individuals and small and medium enterprise owners. 

Ladies and Gentlemen,

 

First of all, I would like to extend my thanks to the German Agency for International Cooperation (GIZ) for giving us the opportunity to co-host the third Public and Private Dialogue of the “Regulatory Framework Promotion for Pro-poor Insurance Markets in Asia” programme and this event here in Ulaanbaatar.

I also wish, on this occasion, to emphasize that convening these meetings in the form of Public and Private Dialogue was a well-suited decision that gives the countries involved in this programme the opportunity to share their experiences, exchange insights and discuss shortcomings of their respective markets.

Insurance industry regulators, insurance companies and intermediaries, and individuals must all come together to build trust in market and work in partnership towards establishing a system that further enhances inclusive insurance, and guards consumers against risks.

The Financial Regulatory Commission of Mongolia has been making substantial efforts in implementing a number of activities with respect to enhancing inclusive insurance. Within the scope of “RFPI ASIA” programme implemented by GIZ, we have so far determined the activities related to inclusive insurance and corresponding requirements, conducted an assessment of regulatory framework of inclusive insurance and a research on products and services.

This programme helped us to define characteristics of inclusive insurance as “voluntary insurance scheme designed for every individual that consists of simple and comprehensible policy with low premium”.

 

The low and middle income people and SME owners are unlikely to buy sufficient insurance coverage due either to their financial incapability or mis-designed products along with under-developed distribution channels. Hence, the Financial Regulatory Commission is working vigorously towards achieving its short-term goals to develop an inclusive insurance prototype product tailored for the target recipients; expand distribution channels for inclusive insurance; enhance public financial literacy and establish improved regulatory framework fostering the growth of the insurance industry.

Ladies and Gentlemen,

The regional development and financial well-being of population in Asia directly depend on our capacity as regulators to implement sound policies and regulations. Despite our social and cultural discrepancies, we are a team working towards a common vision.

Thus, I would like to encourage everyone to actively engage in this dialogue and openly share your valued views and experiences.

I wish you success and prosperity in your future endeavours.

Thank you.

 

 

20 September 2017

 The Corporate Hotel and Convention Center, Ulaanbaatar, Mongolia