The 2017 Brookings Financial and Digital Inclusion Project (FDIP) report evaluates access to and usage of affordable financial services by underserved people across 26 geographically, politically, and economically diverse countries. The report assesses these countries’ financial inclusion ecosystems based on four dimensions of financial inclusion: country commitment, mobile capacity, regulatory environment, and adoption of selected traditional and digital financial services. The report further examines key developments in the global financial inclusion landscape, highlights selected financial inclusion initiatives within the 26 FDIP countries over the previous year, and provides targeted recommendations aimed at advancing financial inclusion.
This paper discusses the role of microinsurance, in a broader social protection framework, as a possible instrument to mitigate risk and reduce vulnerability of poor and low-income households. The research studies microinsurance as an integral part of social protection systems in six countries: Bangladesh, India, Vietnam, Brazil, Cambodia, and Rwanda. It synthesizes the key messages of the country studies for better integration of microinsurance into social protection while considering the social protection principles of universality, solidarity, and equity. It further focuses on insurable risks suitable for microinsurance, such as sickness, old age, death, accidents and disabilities, and extreme weather events. The paper covers the following sections in detail:
- Concept of social protection and microinsurance with a focus on its relevance to the informal economy;
- Description and analysis of different social protection systems and microinsurance practices in six countries;
- Lessons learned from integrating microinsurance into social protection systems;
- Recommendations for extending coverage to the informal economy and other vulnerable groups, improving benefits, and increasing access to public social protection and microinsurance with a focus on approaches that can be replicated in other countries if adapted to fit a specific environment.
Evaluating consumer protection for low-income people in Vietnam
This report describes the state of financial inclusion in Vietnam and the existing financial consumer protection (FCP), regulatory, and supervisory framework for low-income clients. It also analyzes the role of industry self-regulation bodies in promoting responsible finance, as well as the extent of implementation of consumer protection principles by financial services providers. The report focuses on two of the three pillars of responsible finance: consumer protection, regulation and supervision, and industry standards and codes of conduct.