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: 7 | ARCHIVED on 06-Feb-2020 | ISR40236 | 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: 21-Sep-2020 Actual Mid-Term Review Date: 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 Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project was approved by the World Bank’s Board on 20 March 2017 and after more than a year of delay, it was approved by ECNEC and became effective on 8 July 2018. The delay has severely distorted the original procurement and disbursement schedules. Nonetheless, implementation of the project has significantly picked up in the past 9 months since March 2019, with the project implementation arrangements finalized, PIU and project implementation teams at the beficiary agencies created and institutional capacity of counterparts strengthened. PIU and the relevant procurement committees are now fully staffed, thus enabling more effective decision making and project implementation. Due to delays and still modest disbursement at 7.3%, the Project Development Objective (PDO) is still rated Moderately Satisfactory but remains relevant and achievable. 2/6/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Project Development Objectives Indicators IN00792450 ►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 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792451 ►Number of insurance policy holders (life and non-life) (Number, Custom) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 17,000,000.00 19,738,427.00 19,738,427.00 22,000,000.00 2/6/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 Overall Comments PDO Implementation of IDRA smart risk based supervision has not been launched yet due to delays with project procurement and needs to be accelerated. At the same time, the number of insurance policy holders is growing, as authorities and the project beneficiaries in particular are taking measures to increase market awareness and penetration and foster product development. Intermediate Results Indicators by Components Improving the Capacity of the Insurance Development and Regulatory Authority (IDRA) and the Bangladesh Insurance Academy (BIA) IN00792452 ►Insurance companies follow off-site monitoring templates 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 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792455 ►On-site inspections of insurance companies performed annually by IDRA (Number, Custom) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 31.00 31.00 60.00 Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792458 ►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 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792461 ►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 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792463 ►Insurance Companies follow Claims Management Methodology issued by IDRA (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 2/6/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Value 0.00 0.00 0.00 70.00 Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792465 ►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 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792467 ►Mortality and Morbidity tables produced (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792469 ►National Social Insurance Scheme (NSIS) Study conducted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792470 ►Number of people who receive ABIA Diplomas and Cerficates (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 115.00 115.00 600.00 Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 Modernization, Strengthening and Increasing the Efficiency of the State-owned Insurance Corporations IN00792453 ►Life Insurance policies that lapse after one year at JBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 49.43 49.43 30.00 Date 31-Dec-2015 31-Dec-2018 31-Dec-2019 31-Aug-2022 IN00792456 ►Total number of policy holders at JBC and SBC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 2/6/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Value 463,000.00 424,351.00 424,351.00 550,000.00 Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792459 ►Net Claims ratio at JBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 66.00 73.48 73.48 80.00 Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792462 ►Net Claims ratio at SBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 37.82 37.82 60.00 Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792464 ►Premium growth rate at JBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 10.71 10.71 15.00 Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792466 ►Premiums growth rate at SBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 4.13 4.13 15.00 Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792468 ►Solvency margin rule issued by IDRA is implemented by JBC and SBC (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 Project Implementation, Management, and Monitoring IN00792454 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 2/6/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Value 0.00 0.00 0.00 500,000.00 Date 31-Dec-2015 30-Jun-2019 31-Dec-2019 31-Aug-2022 IN00792457 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 IN00792460 ►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 30-Jun-2019 31-Dec-2019 31-Aug-2022 Overall Comments IR The November 2019 mission team received quarterly project progress reports and the results indicators. The Bank team commended PIU and the authorities for the significant efforts in establishing project M&E framework and launching data collection mechanisms. Some data requires clarification, while in some cases surveys will need to launched to meet the satisfy the requirements of the results framework. Many interim results remain not-achieved due to late project effectiveness and delays in procurement of consulting services and goods. The project audited financial statement for FY 2018-2019 was due on December 31, 2019. PIU has submitted the draft audit report on December 31, 2019 and is expected to submit the final audit report in the coming days. Data on Financial Performance 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 4.77 61.19 7.2% 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 2/6/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 2/6/2020 Page 7 of 7