It may interest readers, that drawing on the lessons from m(obile) insurance, the Kenya Microinsurance Policy Paper is now proposing a 'living will' requirement for all service level agreements for microinsurance initiatives to set out how a scheme should be closed down. This is the first pilot of this approach so I look forward to seeing how it works and how supervisors can learn from the experience:
"Creating a living will: The SLA should specify how, in the case of the failure of the arrangement, the insurer, aggregator and supervisor will ensure that:
a sufficient and well-communicated notice period is given;
alternative options are available to clients, including voluntary paid cover, before the scheme is stopped;
arrangements are made concerning appropriate payment mechanisms for the alternative schemes;
the aggregator and insurer continues to monitor and address complaints for a set period;
the supervisor is routinely updated on the wind down of the scheme and the levels of complaints."
The Policy Paper is available below: