Making Public-Private Partnerships Work in Insurance

Designing efficient public-private partnerships in the insurance sector
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This paper aims to help governments and private participants establish successful public-private partnerships (PPPs) in the insurance sector. An insurance PPP is a contractual agreement between the public sector, represented by a ministry or local authority through a government program, and the private sector, which includes the insurance industry and its service providers and distribution partners. These agreements seek to combine business objectives with public policy goals in a cost-efficient and effective way. Based on four case studies from Colombia, India, Mexico, and Peru, the paper provides ten recommendations for establishing successful PPPs in the insurance sector. Recommendations include:

  • Combine a strategic approach with flexibility;
  • Define your target beneficiaries clearly;
  • There is need for a solid regulatory and legal framework;
  • Use insurers as an ally to achieve public policy objectives;
  • Allocate roles clearly between the public and private sectors;
  • Take account of the capacity-building needs of the different levels of the public sector;
  • Build private sector's capacity around best practices, product innovations, pricing, reinsurance, distribution, and technology;
  • Endeavour to improve the value of products to be offered through PPPs;
  • Include monitoring and evaluation systems with clear indicators;
  • Take a knowledge-management approach by documenting lessons, and measuring and sharing results.

About this Publication

By Solana, M.