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 Name||Insurance Sector Development|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|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|
|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.
Consultants work is contributing to SISB review of regulatory framework.
|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. All activities were completed.
4. Ongoing. Two out of four activities has been completed.
Other activities are underway. Consultation is ongoing with SISB since it is currently working on revision to the development program. Agreement was reached to further support capacity development training activities under output 4.
|Summary of Environmental and Social Aspects|
|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||Activities are underway. TA closing date was extended for 12 months until 30 June 2016.|
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||Gafurov, Bobir Baisovich|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Uzbekistan Resident Mission|
State Insurance Supervision Board
Mr. Olimjon Ikramov, Head
5 Mutabillik Maidoni, 7th Floor Tashkent 700 008 Uzbekistan
|Concept Clearance||07 Nov 2012|
|Approval||10 Dec 2012|
|Last Review Mission||-|
|Last PDS Update||30 Mar 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|10 Dec 2012||02 Jan 2013||02 Jan 2013||30 Jun 2015||30 Jun 2016||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|500,000.00||0.00||50,000.00||0.00||0.00||0.00||550,000.00||10 Dec 2012||207,391.23|
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.
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|Title||Document Type||Document Date|
|Insurance Sector Development: Technical Assistance Completion Report||TA Completion Reports||Jul 2017|
|Insurance Sector Development||Technical Assistance Reports||Dec 2012|
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