The World Bank Bangladesh Insurance Sector Development Project (P156823) REPORT NO: RES45467 INTERNATIONAL BANK FOR RECONSRUCTION AND DEVELOPMENT RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF BANGLADESH INSURANCE SECTOR DEVELOPMENT PROJECT APPROVED ON MARCH 20, 2017 TO THE PEOPLE'S REPUBLIC OF BANGLADESH Date FINANCE, COMPETITIVENESS AND INNOVATION SOUTH ASIA Regional Vice President: Martin Raiser Country Director: Mercy Miyang Tembon Regional Director: Mathew Verghis Practice Manager/Manager: Gabi George Afram Task Team Leader(s): Anzhela Prygozhyna, Serap Gonulal The World Bank Bangladesh Insurance Sector Development Project (P156823) ABBREVIATIONS AND ACRONYMS BISDP Bangladesh Insurance Sector Development Project BIA Bangladesh Insurance Academy DO Development Objective ECNEC Executive Committee of the National Economic Council GoB Government of Bangladesh IDRA Insurance Development and Regulatory Authority IP Implementation IT/MIS Information Technology/Management Information Systems JBC Jiban Bima Corporation MOF Ministry of Finance NSIS National Social Insurance Scheme PDO Project Development Objective PIU Project Implementation Unit PP Procurement Plan RBS Risk-based Supervision UFA Universal Financial Access The World Bank Bangladesh Insurance Sector Development Project (P156823) BASIC DATA Product Information Project ID Financing Instrument P156823 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 20-Mar-2017 31-Aug-2022 Organizations Borrower Responsible Agency People's Republic of Bangladesh Project Development Objective (PDO) Original PDO 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. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-59720 20-Mar-2017 10-Apr-2018 08-Jul-2018 31-Aug-2022 65.00 14.28 49.35 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Bangladesh Insurance Sector Development Project (P156823) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This Project Restructuring Paper seeks the approval of the Country Director for an extension of the Project’s Closing Date by 18 months from August 31, 2022 till February 28, 2024, with a slight adjustment of the results framework to support extension of the implementation schedule as well as reflect the latest market developments due to negative impact of Covid-19 pandemic. The project development objective (PDO) remains intact. This will be the first extension of the project closing date of the Credit No. IDA-59720. The Level 2 restructuring is in response to the request from the Government of Bangladesh (GoB), as indicated in the letter from the Economic Relations Division (ERD), Ministry of Finance, dated October 4, 2021. A. Project Background 2. The project is designed to support development of the insurance market, strengthen institutional capacity of the key institutions in Bangladesh and contribute to the reduction of the insurance penetration gap. The PDO is to strengthen the institutional capacity of the regulator and state-owned insurance corporations and increase the insurance coverage in Bangladesh. The project supports inclusive growth and economic development agenda by strengthening foundation for development of a stronger, more diversified and better regulated insurance market with improved market governance and practices. The project has three components: Component 1: Improving the Capacity of the Insurance Development and Regulatory Authority (IDRA) and the Bangladesh Insurance Academy (BIA): ($30.00 M); Component 2: Modernization, Strengthening and Increasing the Efficiency of the State-owned Insurance Corporations: ($45.00 M) and Component 3: Project Implementation, Management, and Monitoring: ($5.00 M). The project supports the World Bank Group (WBG) twin goals of ending extreme poverty by 2030 and boosting the incomes of the bottom 40 percent. The project also contributes to the Bank’s initiative on promoting Universal Financial Access (UFA), where Bangladesh is one of the top five priority countries globally. 3. The importance of a more developed and deeper insurance services for achieving Bangladesh economic growth and equity agenda can’t be underestimated. Developing the insurance sector enhances risk management, mitigation, transfer and income-smoothing mechanisms for underserved populations and helps relieve pressure on social welfare systems. Second, by strengthening insurance market regulatory/supervisory standards and capacity and by supporting modernization of the two state insurance companies through improving their business model and investment strategy, the project contributes to financial stability, mitigation of fiscal risks and fostering longer term contractual savings and investments into the economy. Third, by investing into development and diversification of insurance products and development of reinsurance market the project plays a critical role in supporting Bangladesh’s response and preparedness to catastrophic events such as Covid-19 pandemic or climate change. Moreover, as Bangladesh was ranked 7th the most affected country in the 2019-2020 Global Climate Risk Index, with high exposure of its real sector and the banking system to physical risks of climate change due to increased frequency and severity of flooding, increasing insurance penetration among businesses and households is quintessential for the country’s continued sustainable growth, financial and fiscal stability. 4. With the advent of COVID-19 outbreak, the strengthening of the insurance sector is even more pressing. Covid- 19 pandemic amplified the importance of developed insurance market for more effective risks distribution between public and private sector, and confirmed the critical role of insurance (health, life, property) in reducing fiscal costs, lowering losses for businesses, and mitigating financial costs and poverty for households. The state insurance companies were among the first to respond to the pandemic outbreak by developing special products for the front-liners, migrant workers and other groups of population, in parallel to increasing coverage and payouts. The net claims ratio of the state life The World Bank Bangladesh Insurance Sector Development Project (P156823) insurance company Jiban Bima Corporation (JBC) (one of the BISDP beneficiaries) increased from 58 percent in 2019 to 95.7 percent in March 2021. Therefore, continued project implementation and strengthening of the insurance market regulation and supervision, modernization and diversification of insurance products, strengthening performance of the two state insurance companies and increasing market penetration is crucial for the country’s post-COVID-19 recovery, enhanced safety net and risks-sharing and transfer. The project’s outcome is also important for the government’s effort to develop the capital market under the Eighteen-point Action Plan led by the Ministry of Finance (MOF). Developing institutional investors such as the insurance sector is a prerequisite for developing domestic debt securities market. Hence, implementation of the BISDP is important for financial market diversification and development of other segments of the financial sector in Bangladesh. B. Overall Project Implementation Status 5. The project was approved on March 30, 2017 and after a 16-month delay in obtaining approval from ECNEC, the project became effective on July 8, 2018. Significant delay of the project effectiveness has disrupted the project disbursement schedule. Furthermore, slow decision-making process for approving procurement decisions by the Government and additional delays caused by the Covid-19 pandemic during 2020-2021 hampered the procurement process. As many procurement activities, including consulting services and goods, were interdependent, delay of early- stage procurement activities under Phase 1 automatically delayed the procurement of larger value procurement activities. As a result, implementation progress was downgraded to MS in July 2019 and MU in July 2020. However, concerted efforts taken by the authorities after the project’s mid-term review mission in October 2020 resulted in a notable improvement of the project’s management and implementation and acceleration of the procurement process. This allowed to upgrade the rating for the overall implementation back to MS in December 2021 (the MS rating reflecting upon the earlier delays in project disbursement and procurement). The project’s financial management performance is satisfactory, with no delays or outstanding issues in project reporting or external audit. 6. Despite continued COVID-19 distortions, the authorities have confirmed strong commitment to implementation of the insurance market reform and have taken critical measures to enhance project implementation during 2021- 1H2022. Important management decisions were made in 2021 and 2022 to strengthen insurance market reform leadership and enforce project management. Specifically, the new chairman of the project implementation agency – IDRA – was appointed in September 2020, that helped to improve reform leadership, accelerated decisions and elevated the project’s importance and results monitoring. Furthermore, appointment of the new project director (PD) in February 2021 and further change of PD in January 2022 contributed to a more effective project management and increased productivity of the project implementation unit (PIU), improved project communication and coordination with beneficiary agencies, contractors, and the decision makers in the government. The PIU has also mobilized additional expertise in the procurement, project management and IT area to facilitate procurement and results monitoring. Furthermore, the project’s procurement plan was restructured, with core activities consolidated and prioritized (such as six core IT/MIS packages). Additional steps have been taken to improve project results monitoring by organizing monthly progress meetings with all the parties concerned as well as improving quality and frequency of the data collection, analysis and reporting under the project. The project team has also intensified communication with the government agencies (ERD, FID, FAPAD, Planning Commission) to seek their support and address pending issues. These and other steps resulted in rapid acceleration of the project procurement and increased ownership of reforms supported by the project. 7. The authorities have met all the prerequisites for the project restructuring and confirmed their continued commitment to implement the project. Advancement of the project restructuring was conditional to implementation of several key prerequisites discussed during the May 2021 implementation support mission. In line with this agreement the authorities have met all the agreed prerequisites to support project restructuring. Specifically, (i) the PIU has renegotiated and signed the contract S2-1 for regulatory/supervisory consulting support as a key step to implementation The World Bank Bangladesh Insurance Sector Development Project (P156823) transformational regulatory and supervisory reforms in the insurance market, (ii) IDRA has finalized recruitment of 31 IT staff and is finalizing recruitment of 41 technical/supervisory staff (expected to be completed in August-September 2022), and (iii) the PIU contracted a survey firm for citizens engagement survey (CES) and completed the baseline CES in March 2022, as required by the project’s results framework. Furthermore, the PIU has launched procurement of all large IT/MIS packages. As of June 30, 2022, 44 contracts for the total value of US$33.2 million or 51 percent of IDA credit have already been signed and are under implementation or completion. Furthermore, the remaining large value contracts for US$32.1 million or 49 percent of IDA credit are already at the final stage of procurement, with contracts expected to be signed by the end of August -October 2022. This will result in 100 percent commitment of the IDA credit. Disbursement ratio has also improved from 12.8 percent in May 2021 to 22 percent in June 2022 and is expected to increase to more than 50 percent by the end of 2022 (based on the signed contracts and expected large value payments for IT/MIS contracts) and nearly 100 percent by the new proposed end disbursement date of June 28, 2024 after this project restructuring. The authorities have also reconfirmed their commitment to the project restructuring and sent the request for restructuring on October 4, 2021. C. Rationale for Restructuring 8. The Covid-19 pandemic demonstrated the overarching importance of the project for implementation of critical insurance market reforms and supporting post-Covid economic rebound. Covid-19 has revealed significant institutional weakness, gaps in financial infrastructure and insurance, reinsurance services delivery that have undermined the effectiveness of response. For example, low digitalization of financial services, including core insurance products, and inability of the largest companies, in particular state insurance companies, to sell insurance products and process claims online have severely hampered sale of new and renewal of insurance policies during lockdowns. Market oversight and financial reporting suffered tremendously in the absence of IDRA’s ability to collect financial and prudential data/return of insurance companies online, while the state companies had difficulties to consolidate their own statements due to low technological readiness and dependence on obsolete means of communication and data transfer (e.g. hard copies or floppy discs). Data security and business continuity for core operations was also at risk due to low capacity and obsolete equipment, absence of proper data and recovery centers, fragmentation of systems and their low interoperability, significant dependence on limited human support which was even more limited during the lockdown. 9. The project was designed and is key to addressing major deficiencies and gaps that hamper insurance market regulation and development and undermine operations and performance of the state insurance companies. However, due to a 16-months delay of the project effectiveness and slow mobilization of staff in the PIU and PD recruitment, the authorities had only 20 months prior to the COVID pandemic to launch key procurement activities and select core consultants to help the beneficiary agencies with assessments and preparation of documents for large value procurement. Multiple procurement activities were caught in the process and delayed due to COVID lockdowns in 2020-2021 and full quarantine of the PIU team in July-August 2020. Procurement process slowed down for this and other projects due to the absence of effective mechanisms for approving procurement documents during lockdowns (as e-signature was not used, but in-situ meetings were prohibited), or because bidders either were refusing to bid or requested extensions of bids submission deadlines due to constraints (e.g. inability to submit hard copies, or provide bank bid guarantees during lockdowns etc). In parallel, beneficiary agencies (IDRA, state insurance companies) had to respond to the emerging pandemic agenda and work on the development of new products and solutions to mitigate COVID costs and losses for households and businesses (e.g. to develop special insurance coverage for the first respondents, offer additional health insurance to the households for COVID infection, or provide special insurance services to migrant workers). This created additional workload for limited staff and capacity of the beneficiary agencies. Nonetheless, the PIU has managed to speed up procurement in 2021-1H2022 to ensure that the procurement process will be timely completed before the project end. The World Bank Bangladesh Insurance Sector Development Project (P156823) 10. However, time left before the project closing date of August 31, 2022 is insufficient to implement complex institutional, operational, technological, regulatory/supervisory and market development reforms supported by the project and the extension of the project closing date is warranted. While the project was designed for 5 years (60 months) in implementation, the net implementation time after late effectiveness during July 2018-August 2022 is only 49 months, of which the past 24 months were highly disruptive due to COVID. Experience of other countries and Bank projects suggests that institutional development projects with important transformational impact like BISDP often take more time for initial procurement and capacity building and require additional time for of complex institutional, regulatory and supervisory reforms and market development. Therefore, due to the project effectiveness delay by 16 months and Covid- 19 disruptions, the proposed extension of the project closing date by 18 months is necessary and fully justified. It would allow completion of activities under the IT/MIS and consulting contracts, including installation, testing, and full operationalization of IT/MIS solutions, implementation of the key regulatory decisions and reforms, as well as continued capacity building and knowledge transfer in support of institutional reforms of the beneficiary agencies and the market. IDRA and beneficiary agencies need additional time to internalize all the respective reforms, develop internal procedures, test new systems and train staff to use them. II. DESCRIPTION OF PROPOSED CHANGES 11. The project restructuring includes two main changes: (i) Extension of the project closing date from August 31, 2022 to February 28, 2024. (ii) Immaterial revisions to the project’s results framework to accommodate delays caused by COVID pandemic and reflect the proposed extension of the project closing date. The main revisions to the results framework include: a. clarification of the wording for one PDO outcome indicator and intermediate result indicator 1 (with no change in nature of the reforms); b. revised project numerical targets (slight increase or decrease depending on the COVID impact and market needs), and c. dropped intermediate result indicator 8 (National Social Insurance Study (NSIS) conducted): it is proposed to be dropped as it was done under another project funded by the Government. 12. The detailed proposals to the revised Results Framework are outlined below per ERD letter of October 4, 2021: a) PDO Outcome Indicator 1: Adoption and implementation by IDRA of smart risk-based supervision (Percentage of insurance market supervised by smart-RBS). The wording and targets for this indicator are slightly revised for higher clarity and more granular results for years 5, 6 and End Target. Delays in IT/MIS procurements and recruitment of IDRA staff, plus the COVID-19 pandemic lockdown negatively affected IDRA’s institutional reforms and the timeline for introduction of the new regulatory framework and the supporting IT/MIS systems. IDRA is committed to implement this reform but needs more time in lieu of the above-mentioned delays. Revised Indicator: IDRA adopted new smart risk based regulatory approach, supervisory technique along with IT/MIS solutions (smart RBS). Revised target for Year 5: RBS regulations, supervisory methodology, techniques along with IT/MIS solutions developed by IDRA. Revised target for Year 6 (at project completion): RBS framework adapted by IDRA Revised target for End Target: RBS frame RBS framework adopted by IDRA The World Bank Bangladesh Insurance Sector Development Project (P156823) b) PDO Outcome Indicator 2. Number of insurance policy holders (life and non-life) (Number). Increases target for years 4, 5, 6 and End Target Revised target for year 4: 20,000,000 Revised target for year 5: 22,000,000 Revised target for year 6: 23,000,000 Revised target for End Target: 24,000,000 c) Intermediate Results Indicator 1: Insurance companies follow off-site monitoring templates issued by IDRA (Percentage). The wording and targets for this indicator are slightly revised to specify the need for IDRA to adopt smart risk-based insurance practices. This provides more clarity and with revised indicators help to ensure compliance with line with the market readiness and IDRA targets. Delays in IT/MIS procurements and recruitment of IDRA staff, plus the COVID-19 pandemic lockdown negatively affected IDRA’s institutional reforms, IT procurement and introduction of RBS and new reporting requirements. IDRA is committed to implement this reform but needs more time in lieu of the above-mentioned delays. Revised Indicator: Insurance companies follow off-site monitoring templates issued by IDRA for smart risk- based supervision (Percentage) Revised target for Year 4: IDRA issued new off-site monitoring templates Revised target for Year 5: Top 6 (top 3 life and top 3 non-life) insurance companies comply with new offsite reporting requirements. Revised target for Year 6: 20% of life and non-life companies comply with new IDRA offsite reporting requirements. Revised target for End Target: 40% life and non-life insurance companies comply with the new offsite reporting requirements. d) Intermediate Results Indicator 2: On-site inspections of Insurance companies performed annually by IDRA (Number). Increase Target for Year 4, 5, 6 and end target Revised target for Year 4: 25 Revised target for Year 5: 30 Revised target for Year 6: 35 Revised target for End Target: 40 e) Intermediate Results Indicator 3: Solvency margin rule for insurance companies issued by IDRA and implemented (Text) Revised Target for Year 2, 3, 4, 5, 6 and end target Revised target for year 2: Not issued Revised target for year 3: Not issued Revised target for Year 4: Not issued Revised target for year 5: Issued Revised target for year 6: Implemented Revised target for End Target: Implemented f) Intermediate Results Indicator 4: Corporate governance regulation/guidance issued by IDRA are followed by insurance companies (Percentage of market share). Revised Target for Year 2, 3, 4, 5, 6 and end target Revised target for Year 2: 0 Revised target for Year 3: 0 Revised target for Year 4: 10 Revised target for Year 5: 60 Revised target for Year 6: 65 The World Bank Bangladesh Insurance Sector Development Project (P156823) Revised target for End Target: 70 g) Intermediate Results Indicator 5: Insurance companies follow Claims Management Methodology and regulation/guidance issued by IDRA (Percentage of companies). Revised Targets for Year 2, 3, 4, 5, 6 and end target Revised target for Year 2: 0 Revised target for Year 3: 0 Revised target for Year 4: 10 Revised target for Year 5: 50 Revised target for Year 6: 55 Revised target for End Target: 60 h) Intermediate Results Indicator 6: Insurance companies issue key facts statements to policy holders following new Consumer Protection regulations issued by IDRA (Percentage of companies). Revised Targets for Year 3, 4, 5, 6 and end target. Revised target for Year 3: 0 Revised target for Year 4: 10 Revised target for Year 5: 60 Revised target for Year 6: 65 Revised target for End Target:70 i) Intermediate Results Indicator 7: Mortality and morbidity tables produced (Yes/No). Revised Target Year 3, 6 and End target. Revised target for Year 3: No Revised target for Year 6: Yes Revised target for End Target: Yes j) Intermediate Results Indicator 8: National Social Insurance Scheme (NSIS) Study conducted (Yes/No). This indicator is dropped. The study has already been conducted by the government hence doesn’t need to be supported by the project. k) Intermediate Results Indicator 9: Number of people who receive ABIA Diplomas and Certificates (Number) Revised Target for Year 2, 3, 4, 5, 6 and end target Revised target for Year 2: 150 Revised target for Year 3: 200 Revised target for Year 4: 250 Revised target for Year 5: 350 Revised target for Year 6: 400 Revised target for End Target: 450 l) Intermediate Results Indicator 10: Life Insurance policies that lapse after one year at JBC (Percentage) Revised Target for Year 2, 3, 4, 5, 6 and end target Revised target for Year 2: 50 Revised target for Year 3: 50 Revised target for Year 4: 45 Revised target for Year 5: 45 The World Bank Bangladesh Insurance Sector Development Project (P156823) Revised target for Year 6: 44 Revised target for End Target: 43 m) Intermediate Results Indicator 11: Total no of policy holders at JBC and SBC (Number) Increase in Year 6 and end target Revised target for Year 6: 575,000 Revised target for End Target: 600,000 n) Intermediate Results Indicator 12: Net claims ratio of JBC (Percentage) Revised Target for Year 2, 3, 4, 5, 6 and end target Revised target for Year 2: 65 Revised target for Year 3: 65 Revised target for Year 4: 65 Revised target for Year 5: 63 Revised target for Year 6: 65 Revised target for End Target: 67 o) Intermediate Results Indicator 13: Net claims (loss) ratio of SBC (Percentage) Revised Target for Year 2, 3, 4, 5, 6 and end target Revised target for Year 2: 40 Revised target for Year 3: 45 Revised target for Year 4: 50 Revised target for Year 5: 50 Revised target for Year 6: 52 Revised target for End Target: 55 p) Intermediate Results Indicator 14: Premium growth rate of JBC (Percentage) Revised Target for Year 2, 3, 4, 5, 6 and end target Revised target for Year 2: 9 Revised target for Year 3: 10 Revised target for Year 4: 12 Revised target for Year 5: 15 Revised target for Year 6: 16 Revised target for End Target: 17 q) Intermediate Results Indicator 15: Premium growth rate of SBC (Percentage) Increase Target Year 4, 5, 6 and end target Revised target for Year 4: 10 Revised target for Year 5: 12 Revised target for Year 6: 14 Revised target for End Target: 16 r) Intermediate Results Indicator 16: Solvency margin rule issued by IDRA is implemented by SBC and JBC (Text) The revised target for Year 2, 3, 4, 5, 6 and end target Revised target for Year 2: No The World Bank Bangladesh Insurance Sector Development Project (P156823) Revised target for Year 3: No Revised target for Year 4: Issued Revised target for Year 5: Implemented Revised target for Year 6: Implemented Revised target for End Target: Implemented s) Intermediate Results Indicator 17: Direct project beneficiaries (Number); Clarification was added to this indicator. Revised Indicator: Direct project beneficiaries (net increase yoy in policy holders of JBC and SBC who pay a premium for an insurance policy) (Number). Revised target for Year 1: 0 Revised target for Year 2: 0 Revised target for Year 3: 0 Revised target for Year 4: 50,000 Revised target for Year 5: 100,000 Revised target for Year 6: 120,000 Revised target for End Target: 130,000 t) Female beneficiaries 18: (Percentage-Sub-Types: Supplemental)- Clarification was added to this indicator. Revised Indicator: Female beneficiaries (Percentage-Sub-Types: Supplemental) (net increase yoy in female policy holders of JBC and SBC who pay a premium for an insurance policy). Revised target for Year 1: 0 Revised target for Year 2: 0 Revised target for Year 3: 0 Revised target for Year 4: 10,000 Revised target for Year 5: 25,000 Revised target for Year 6: 28,000 Revised target for End Target: 30,000 u) Intermediate Results Indicator 19: Direct project beneficiaries who feel that project investments reflected their needs (Percentage) Revised target for Year 1, 2, 3, 4, 5, 6 and end target Revised target for Year 1: 0 Revised target for Year 2: 0 Revised target for Year 3: 0 Revised target for Year 4: 50, Conduct Baseline Client Satisfaction Survey Revised target for Year 5: 50, Conduct Baseline Client Satisfaction Survey Revised target for Year 6: 80, Client Satisfaction Survey Conducted with Final Report Revised target for End Target: 80, Client Satisfaction Survey Conducted with Final Report 13. The project implementation schedule will be revised to align the current schedule with the new closing date. The World Bank Bangladesh Insurance Sector Development Project (P156823) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE The World Bank Bangladesh Insurance Sector Development Project (P156823) LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-59720 Effective 31-Aug-2022 28-Feb-2024 28-Jun-2024 . The World Bank Bangladesh Insurance Sector Development Project (P156823) . Results framework COUNTRY: Bangladesh Bangladesh Insurance Sector Development Project Project Development Objectives(s) 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. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Project Development Objectives Indicators (Action: This Objective has been Revised) RBS regulations, IDRA adopted new smart supervisory risk based regulatory methodology, RBS frame RBS approach, supervisory RBS framework No No No No No techniques along framework adopted technique along with adopted by IDRA with IT/MIS by IDRA IT/MIS solutions (smart solutions RBS) (Text) developed by IDRA Action: This indicator has been Revised Number of insurance policy holders (life and 17,000,000.00 18,000,000.00 18,500,000.00 19,000,000.00 20,000,000.00 22,000,000.00 23,000,000.00 24,000,000.00 non-life) (Number, Custom) (Number) Action: This indicator has been Revised PDO Table SPACE The World Bank Bangladesh Insurance Sector Development Project (P156823) Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Improving the Capacity of the Insurance Development and Regulatory Authority (IDRA) and the Bangladesh Insurance Academy (BIA) Top 6 (top 3 life 20% life and non- 40% life and non-life Insurance companies and top 3 non-life) life insurance insurance follow off-site monitoring IDRA issued new insurance companies comply companies comply templates issued by IDRA No No No No off-site monitoring companies comply with the new with the new offsite for smart risk based templates with the new offsite reporting reporting supervision. (Text) offsite reporting requirements requirements requirements Action: This indicator has been Revised On-site inspections of insurance companies performed annually by 0.00 10.00 10.00 10.00 25.00 30.00 35.00 40.00 IDRA (Number, Custom) (Number) Action: This indicator has been Revised Solvency margin rule for insurance companies Not issued No Not issued Not issued Not Issued Issued Implemented Implemented issued by IDRA and implemented (Text) Action: This indicator has been Revised Corporate governance regulations issued by 0.00 0.00 0.00 0.00 10.00 60.00 65.00 70.00 IDRA are followed by The World Bank Bangladesh Insurance Sector Development Project (P156823) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 insurance companies (Percentage) Action: This indicator has been Revised Insurance Companies follow Claims Management 0.00 0.00 0.00 0.00 10.00 50.00 55.00 60.00 Methodology and regulation issued by IDRA (Percentage) Action: This indicator has been Revised Insurance companies issue key facts statements to policy holders following new 0.00 0.00 0.00 0.00 10.00 60.00 65.00 70.00 Consumer Protection regulations issued by IDRA (Percentage) Action: This indicator has been Revised Mortality and Morbidity No No No No Yes Yes Yes Yes tables produced (Yes/No) Action: This indicator has been Revised National Social Insurance Scheme (NSIS) Study No No Yes Yes Yes Yes conducted (Yes/No) The World Bank Bangladesh Insurance Sector Development Project (P156823) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Marked for Deletion Number of people who receive ABIA Diplomas 50.00 100.00 150.00 200.00 250.00 350.00 400.00 450.00 and Certificates (Number) Action: This indicator has been Revised Modernization, Strengthening and Increasing the Efficiency of the State-owned Insurance Corporations Life Insurance policies that lapse after one year 50.00 50.00 50.00 50.00 45.00 45.00 44.00 43.00 at JBC (Percentage) Action: This indicator has been Revised Total number of policy holders at JBC and SBC 463,000.00 475,000.00 490,000.00 500,000.00 520,000.00 550,000.00 575,000.00 600,000.00 (Number) Action: This indicator has been Revised Net Claims ratio at JBC 66.00 70.00 65.00 65.00 65.00 63.00 65.00 67.00 (Percentage) Action: This indicator has been Revised Net Claims ratio at SBC 35.00 35.00 40.00 45.00 50.00 50.00 52.00 55.00 (Percentage) The World Bank Bangladesh Insurance Sector Development Project (P156823) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Revised Premium growth rate at 7.00 8.00 9.00 10.00 12.00 15.00 16.00 17.00 JBC (Percentage) Action: This indicator has been Revised Premiums growth rate at 7.00 8.00 9.00 10.00 10.00 12.00 14.00 16.00 SBC (Percentage) Action: This indicator has been Revised Solvency margin rule issued by IDRA is No No No No Issued Implemented Implemented Implemented implemented by JBC and SBC (Text) Action: This indicator has been Revised Project Implementation, Management, and Monitoring Direct project beneficiaries (net increase in policy holders of JBC and SBC who pay a 0.00 0.00 0.00 0.00 50,000.00 100,000.00 120,000.00 130,000.00 premium for an insurance policy) (Number) Action: This indicator has been Revised The World Bank Bangladesh Insurance Sector Development Project (P156823) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Female beneficiaries (net increase yoy in female policy holders of JBC and SBC who 0.00 0.00 0.00 0.00 10,000.00 25,000.00 28,000.00 30,000.00 pay a premium for an insurance policy) (Percentage) Action: This indicator has been Revised Direct project beneficiaries who feel that project investments 0.00 0.00 0.00 0.00 50.00 50.00 80.00 80.00 reflected their needs (Percentage) Action: This indicator has been Revised IO Table SPACE The World Bank Bangladesh Insurance Sector Development Project (P156823)