The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Bangladesh Insurance Sector Development Project (P156823) SOUTH ASIA | Bangladesh | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 9 | ARCHIVED on 24-Feb-2021 | ISR45296 | Implementing Agencies: PEOPLE'S REPUBLIC OF BANGLADESH, Insurance Development and Regulatory Authority (IDRA), People's Republic of Bangladesh Key Dates Key Project Dates Bank Approval Date: 20-Mar-2017 Effectiveness Date: 08-Jul-2018 Planned Mid Term Review Date: 12-Oct-2020 Actual Mid-Term Review Date: 12-Oct-2020 Original Closing Date: 31-Aug-2022 Revised Closing Date: 31-Aug-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to strengthen the institutional capacity of the regulator and state-owned insurance corporations and increase the coverage of insurance in Bangladesh. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Improving the Capacity of the Insurance Development and Regulatory Authority (IDRA) and the Bangladesh Insurance Academy (BIA):(Cost $30.00 M) Modernization, Strengthening and Increasing the Efficiency of the State-owned Insurance Corporations:(Cost $45.00 M) Project Implementation, Management, and Monitoring:(Cost $5.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project was approved by the World Bank’s Board on 20 March 2017. After more than a year of delay, it was approved by the Executive Committee of the National Economic Council (ECNEC) and became effective on July 8, 2018. The project implementation is accelerating despite major disruptions caused by the COVID-19 pandemic and prolonged lock-down that disrupted the work of public offices and resulted in slower decision making, as well as caused disruptions in delivery of goods and services under the project. As of October 2020, there were 25 contracts signed under the project for delivery of goods and services. Additional 14 procurement activities are under implementation and expected to be completed in 2021. 2/24/2021 Page 1 of 8 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Based on June 30, 2020 reported data, 3 out of 19 intermediate result indicators have already been achieved/overachieved and 6 showed satisfactory progress. However, COVID-19 disruptions delayed some reforms and accentuated the needs to adjust project results framework. Therefore, the project restructuring to better align the project with the project development objective (PDO) and enable more time for the project implementation is being considered, with the modalities of this restructuring are expected to be finalized shortly upon receipt of the formal request from the authorities. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High Substantial Substantial Macroeconomic Moderate Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- Moderate Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Project Development Objectives Indicators IN00947512 ►Adoption and Implementation by IDRA of smart risk-based supervision (Percentage, Custom) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947513 ►Number of insurance policy holders (life and non-life) (Number, Custom) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 2/24/2021 Page 2 of 8 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Value 17,000,000.00 22,620,093.00 24,098,520.00 22,000,000.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 Overall Comments PDO PDO indicator 1 is suggested to be slightly rephrased, with the result indicators adjusted. Intermediate Results Indicators by Components Improving the Capacity of the Insurance Development and Regulatory Authority (IDRA) and the Bangladesh Insurance Academy (BIA) IN00947514 ►Insurance companies follow off-site monitoring templates issued by IDRA (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 57.00 57.00 70.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947622 ►On-site inspections of insurance companies performed annually by IDRA (Number, Custom) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 34.00 34.00 60.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947625 ►Solvency margin rule for insurance companies issued by IDRA and implemented (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947628 ►Corporate governance regulations issued by IDRA are followed by insurance companies (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 Implementation of some key reforms under the project has been delayed by the earlier procurement delays. In 2019-early 2020 the PIU has significantly accelerated procurement and signed contracts with Comments: several international consulting firms to support IDRA and other beneciary agencies with reforms. Several more contracts are being finalized/negotiated for individual consultants and firms. This will contribute to 2/24/2021 Page 3 of 8 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) the intensified work on IDRA reforms, including preparation of new regulations and requirements for insurance firms, including corporate governance and others. More tangible results are expected in 2021. IN00947630 ►Insurance Companies follow Claims Management Methodology issued by IDRA (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947632 ►Insurance companies issue key facts statements to policy holders following new Consumer Protection regulations issued by IDRA (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947634 ►Mortality and Morbidity tables produced (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947636 ►National Social Insurance Scheme (NSIS) Study conducted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947637 ►Number of people who receive ABIA Diplomas and Cerficates (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 141.00 141.00 600.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 Training and certification has been disrupted by COVID-19, but is expected to catch up once the situation Comments: will stabilize and the lockdown will be lifted. Modernization, Strengthening and Increasing the Efficiency of the State-owned Insurance Corporations IN00947515 ►Life Insurance policies that lapse after one year at JBC (Percentage, Custom) 2/24/2021 Page 4 of 8 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 48.66 9.38 30.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947623 ►Total number of policy holders at JBC and SBC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 463,000.00 521,241.00 488,316.00 550,000.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947626 ►Net Claims ratio at JBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 66.00 58.49 60.58 80.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947629 ►Net Claims ratio at SBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 39.28 46.17 60.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947631 ►Premium growth rate at JBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 11.21 11.21 15.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947633 ►Premiums growth rate at SBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 24.94 24.94 15.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 IN00947635 ►Solvency margin rule issued by IDRA is implemented by JBC and SBC (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 2/24/2021 Page 5 of 8 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Value No No No Yes Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 Project Implementation, Management, and Monitoring IN00947621 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 500,000.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 The launch of the CE survey has been delayed due to the COVID-19 pandemic. It was agreed that a consulting firm for CE survey will be contracted by the end of October 2020 and the survey launched/completed before the end of 2020 (if COVID-19 developments will not aggravate situation Comments: further). IN00947624 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 IN00947627 ►Direct project beneficiaries who feel that project investments reflected their needs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 31-Dec-2015 17-Jun-2020 14-Jan-2021 31-Aug-2022 The procurement of a survey firm is in process and will be completed by the end of October 2020. It is expected that the survey will be completed by the end of 2020. This will serve as a base line, with another Comments: survey to be completed by the end of the project implementation. Overall Comments IR The reported data as of June 2020 indicated negative impact of COVID-19 on several results indicators, specifically, premium growth rate at JBC and SBC which were negative at -5.83 and -9.01, respectively, due to extended lockdown during March-June 2020. It is expected that the premium growth rates will recover by the end of 2020-1H2021. Due to negative impact of COVID-19 and slower implementation of the project, the project restructuring will support some adjustment to the result indicators to reflect new market dynamics and priorities. Performance-Based Conditions Data on Financial Performance 2/24/2021 Page 6 of 8 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156823 IDA-59720 Effective USD 65.00 65.00 0.00 7.41 61.17 11% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156823 IDA-59720 Effective 20-Mar-2017 10-Apr-2018 08-Jul-2018 31-Aug-2022 31-Aug-2022 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) 2/24/2021 Page 7 of 8 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) There are no related projects. 2/24/2021 Page 8 of 8