Uzbekistan: Insurance Sector Development

Sovereign Project | 46112-001

Summary

The TA will undertake assessments to determine compliance with international insurance standards, including the Insurance Core Principles (ICPs) of International Association of Insurance Supervisors (IAIS), estimate market potential, and identify needs for capacity building. It will support the development of an action plan to increase penetration of insurance services, and an electronic document management system for off-site and on-site monitoring that will also include pilot testing.

Latest Project Documents

Title Document Date
Insurance Sector Development Dec 2012

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

No documents of this type are currently available for this project.


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Insurance Sector Development
Project Number 46112-001
Country Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8247-UZB: Insurance Sector Development
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Finance - Insurance and contractual savings
Gender Equity and Mainstreaming
Description The TA will undertake assessments to determine compliance with international insurance standards, including the Insurance Core Principles (ICPs) of International Association of Insurance Supervisors (IAIS), estimate market potential, and identify needs for capacity building. It will support the development of an action plan to increase penetration of insurance services, and an electronic document management system for off-site and on-site monitoring that will also include pilot testing.
Project Rationale and Linkage to Country/Regional Strategy

The objectives of the TA are consistent with the core area of finance sector development as outlined in ADB Strategy 2020, especially in ensuring sustainable private sector-led economic growth. The country partnership strategy (CPS) 2012-2016 advocates demand-led technical assistance in areas identified jointly with the government, including assistance to strengthen the regulatory framework of the insurance market.

The proposed TA will support Presidential Resolution No. 1438 dated 26 November 2010, which calls for further reforms and sustainable improvement of Uzbekistan's finance and banking system, and initiating measures aimed at development of the microfinance and nonbank financial subsectors through a number of comprehensive activities set out in an action plan for 2011-2015. The TA will specifically support activities detailed in Section III of Annex 2 of the action plan, Insurance Market Development and Expansion of Insurance Companies Operations.

In 2008, a TA financed by the United Nations Development Programme (UNDP) reviewed the insurance industry legal and regulatory frameworks, proposed actions to help extend insurance to low-income households and highlighted the potential for agriculture insurance and crop insurance. In 2011, the World Bank carried out a pilot study with a limited focus on life insurance. This study recommended integration of the capital markets (fixed income and equity) to promote the participation of insurers as institutional investors, suggested adoption of taxation policies that support the purchase of insurance and encouraged the development of private pension funds. The proposed TA will build on this work and is welcomed by the World Bank.

Impact Greater outreach of insurance
Project Outcome
Description of Outcome Stronger policy and regulatory environment for insurance
Progress Toward Outcome Consultants are providing support to SISB to review existing insurance framework and system. Recommendations were provided to SISB.
Implementation Progress
Description of Project Outputs

1. Recommendations on changes to the policy and regulatory framework

2. Development of an electronic document management system

3. Exploration of new insurance products and distribution channels

4. Capacity building for SISB staff and insurance market participants

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Ongoing. Three out of four activities have been completed.

2. Ongoing. One out of four activities has been completed.

3. Ongoing. Four out of five activities has been completed.

4. Ongoing. Two out of four activities has been completed.

Other activities are underway.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The design of the TA was discussed in particular with the State Insurance Supervisory Board (SISB), the insurance market regulator. In connection with the Tashkent International Insurance and Reinsurance Conference in April 2011, the design of the TA was further also discussed with the Association of Professional Participants of the Uzbekistan Insurance Market, as well as other relevant stakeholders.
During Project Implementation

Consultants have been engaged. Inception mission has taken place in Sept 2013. Reports were provided to SISB.

Review mission took place in May 2014. Training needs analysis survey was completed, consultants provided recommendation on capacity development plan, recommendations on insurance products and revisions to regulatory framework. SISB reviewing the reports.

Business Opportunities
Consulting Services

1.The technical assistance (TA) will require 21.5 person-months of consulting services two international individual consultants for a total of 6.5 person-months, one international firm for a total of 7 person-months, and one national individual consultant for 8 person-months. The individual consultants will be engaged using the individual consultant selection system and the firm will be engaged using the consultants' qualifications selection method. The team of consultants will be required to provide deliverables consistent with the design and monitoring framework activities, outputs, and delivery dates. Reports are to be of high quality and produced in English with copies in Russian. Precise work timelines and deliverables with dates will be defined at inception, documented in the final inception report, and agreed with the executing agency, the State Insurance Supervisory Board (SISB), and the Asian Development Bank (ADB).

A. International Consultants (6.5 person-months)

2. Insurance regulation expert and team leader (5 person-months). The expert should preferably have a postgraduate degree in economics or finance, or equivalent, with about 12 years of international experience in the respective field of expertise. The expert should have profound technical knowledge of prudential regulation, supervision, and policy issues related to the insurance sector. The expert must have sound experience in insurance supervision and in carrying out assessments of compliance with insurance core principles (ICPs) of the International Association of Insurance Supervisors (IAIS). Working experience in developing countries, preferably in the Commonwealth of Independent States (CIS), is an advantage.

3. Insurance market specialist (1.5 person-months). The specialist should preferably have a postgraduate degree in economics or finance and at least 10 years of experience in the insurance sector. The specialist should have good knowledge of insurance and other financial services, risk, and risk management concepts. The specialist should be familiar with insurance product areas, both life and nonlife, including health insurance, agriculture, and disaster products. The specialist should also be familiar with all phases of the insurance process, e.g., education, marketing, sales (agency and brokerage), underwriting, technical aspects (pricing, reserving, role of the actuary and other professionals, financial management), claims processes, and customer service. The specialist should understand emerging markets and developing economies, particularly constraints related to infrastructure, education and training, culture, and the roles of the state and the private sector. Working experience in developing countries, preferably in the CIS, is an advantage

B. Insurance Information System Software Development Firm (7 person-months)

4. The purpose of this assignment is to develop an electronic document management system to assist submission of returns by insurers and intermediaries and to improve efficiency and effectiveness of off-site and on-site inspections. The firm should have documented experience in developing information technology (IT) tools and software for financial regulation, supervision, and policy issues. This assignment requires 2 domain experts (one international for 5 person months and one national consultant for 2 person months) with at least 10 years of experience as IT specialists in financial services, preferably insurance; should be familiar with on-site and off-site inspections and in designing an integrated on-site and off-site monitoring system; and have experience in developing compliance-related software. Working experience in developing countries, preferably in the CIS, is an advantage. ADB will engage consultants in accordance with its Guidelines on the Use of Consultants (2010, as amended from time to time) to be contracted either as individual consultants or through a firm using the consultants' qualifications

Responsible ADB Officer Bobir Gafurov
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
State Insurance Supervision BoardMr. Olimjon Ikramov, Head5 Mutabillik Maidoni, 7th Floor Tashkent 700 008 Uzbekistan
Timetable
Concept Clearance 07 Nov 2012
Fact Finding -
MRM -
Approval 10 Dec 2012
Last Review Mission -
Last PDS Update 27 Mar 2015

TA 8247-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2012 02 Jan 2013 02 Jan 2013 30 Jun 2015 30 Jun 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 50,000.00 0.00 0.00 0.00 550,000.00 10 Dec 2012 139,985.87
Title Document Type Document Date
Insurance Sector Development Technical Assistance Reports Dec 2012

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.