Public Disclosure Copy The World Bank Implementation Status & Results Report Kazakhstan: Southeast Europe and Central Asia Catastrophe Risk Insurance Facility (P152230) Kazakhstan: Southeast Europe and Central Asia Catastrophe Risk Insurance Facility (P152230) EUROPE AND CENTRAL ASIA | Kazakhstan | Finance, Competitiveness and Innovation Global Practice | Global Environment Project | Investment Project Financing | FY 2016 | Seq No: 3 | ARCHIVED on 05-Mar-2018 | ISR31522 | Implementing Agencies: Europa Re, Europa Re Key Dates Key Project Dates Bank Approval Date:08-Apr-2016 Effectiveness Date:25-May-2016 Planned Mid Term Review Date:12-Sep-2018 Actual Mid-Term Review Date:-- Original Closing Date:31-Dec-2019 Revised Closing Date:31-Dec-2019 Global Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to assist Kazakhstan with developing a modern catastrophe insurance market infrastructure that will support the launch of affordable, innovative catastrophe insurance products covering the risks of weather extremes. The proposed project activities support GEF’s focus on climate change and more specifically, GEF’s objectives on climate change adaptation. By increasing access to sound catastrophe and weather risk insurance products for millions of people in Kazakhstan, SEECA CRIF is also in line with the GEF strategy on adaptation. By supporting proper catastrophe risk management and risk transfer, SEECA CRIF reduces economic losses at both local and national levels from extreme weather related events, thereby reducing economic vulnerability and contributing toward increased climate resilience at the national level. SEECA CRIF activities are also cross-cutting and collaborative, ensuring the engagement of major stakeholders in Kazakhstan, including the Ministry of Economic Development and Planning, the National Bank, and the Insurance Association. Moreover, because much of the technical work will be focused on establishing complex catastrophe insurance infrastructure and systems, stakeholders will gain the requisite skills and knowledge to better understand catastrophe risk and effectively adapt to such risks and climate change. Furthermore, public awareness of climate change and the benefits of catastrophe and weather risk insurance will be raised through information campaigns and the public discussion of the new Law on Compulsory Catastrophe Insurance, resulting in increased demand for catastrophe and weather risk insurance products. The project also aims to provide national and local governments as well as private individuals with the up-to-date actionable information on the risk of natural disasters faced the communities and certain segments of national economy. The information will be delivered to the decision makers in the form of workshops, risk maps and through interactive education tools available on-line. Although the project has been designed specifically for Kazakhstan, it can be easily replicated in other countries of the region that are adversely affected by climate change through the extension of insurance market infrastructure and insurance services to be developed for Kazakhstan to other markets of the region. Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components Name Funding of technical assistance to expand SEE CRIF program to Kazakhstan.:(Cost $5.00 M) Overall Ratings 3/5/2018 Public Disclosure Copy Page 1 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Kazakhstan: Southeast Europe and Central Asia Catastrophe Risk Insurance Facility (P152230) Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions Over the last 6 months, the project has been under successful implementation by Europa RE, the project implementation agency and a specialty catastrophe insurer. The Bank carried out technical, procurement and financial supervision of the project. A project supervision mission has taken place in December 2017. The mission assessed the current status of project implementation by Europa Re as satisfactory. The mission also held meetings with agricultural lenders, insurers and NBK to assess the specifications and gauge the demand for the insurance product developed by Europa Re for the local agriculture under the project. The mission supported the overall direction of the pilot insurance program designed by Europa Re in support of rural lending. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  Moderate  Moderate  Moderate 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 Sustainability  Low  Low  Low Fiduciary  Low  Low  Low Environment and Social  Low  Low  Low Stakeholders  Moderate  Moderate  Moderate Other  Moderate  Moderate  Moderate Overall  Moderate  Moderate  Moderate Results Global Environmental Objective Indicators 3/5/2018 Public Disclosure Copy Page 2 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Kazakhstan: Southeast Europe and Central Asia Catastrophe Risk Insurance Facility (P152230) PHINDGEOTBL  Insurance market infrastructure made available for use to local insurance companies in support of catastrophe risk insurance products. (Number)(Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 4.00 Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 PHINDGEOTBL  Consumers are more aware of catastrophe insurance and its benefits. (Percentage)(Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 20.00 Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 Overall Comments The IT systems in support of product sales/distribution will be available by the time of scheduled product launch in March. The web-based education tool to increase public awareness of natural disasters is also scheduled for launch in the early March. Intermediate Results Indicators PHINDIRITBL  Number and type of new cat risk insurance products developed. (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 2.00 2.00 Date 21-Apr-2016 01-May-2017 07-Feb-2018 30-Sep-2019 3/5/2018 Public Disclosure Copy Page 3 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Kazakhstan: Southeast Europe and Central Asia Catastrophe Risk Insurance Facility (P152230) PHINDIRITBL  Cat risk insurance products developed under the project are available through local insurance industry in Kazakhstan.(Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 21-Apr-2016 -- 08-Feb-2018 30-Sep-2019 PHINDIRITBL  Percentage of insurance agents in the market offering catastrophe risk insurance. (Percentage) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10.00 Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 PHINDIRITBL  Insurance premium of basic catastrophe insurance products are within the reach of even the poorest segment of homeowners (EUR25-40/year). (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 PHINDIRITBL  Catastrophe risk insurance products are offered online.(Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 3/5/2018 Public Disclosure Copy Page 4 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Kazakhstan: Southeast Europe and Central Asia Catastrophe Risk Insurance Facility (P152230) PHINDIRITBL  Number of women insured against natural disasters as % of total insured.(Percentage) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50.00 Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 PHINDIRITBL  Online automated sales, underwriting and pricing system is launched.(Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 PHINDIRITBL  Online claims management system is launched.(Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 PHINDIRITBL  Appropriate legislation and risk-based regulatory framework for catastrophe risk products is developed.(Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 3/5/2018 Public Disclosure Copy Page 5 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Kazakhstan: Southeast Europe and Central Asia Catastrophe Risk Insurance Facility (P152230) PHINDIRITBL  Number of insurance companies selling catastrophe insurance products through insurance market infrastructure developed under the project (at least 3).(Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 3.00 Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 PHINDIRITBL  Actuarial and probabilistic risk models in support of product pricing have been developed.(Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 PHINDIRITBL  CatMonitor custom-tailored for Kazakhstan is made available online and regularly maintained.(Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 PHINDIRITBL  Demand boosting measures have been carried out as a result of technical assistance provided to government/insurance regulator under the project. (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 3.00 Date 21-Apr-2016 -- 07-Feb-2018 30-Sep-2019 Overall Comments A good number of indicators still remain unfilled in this ISR due to the fact that their fulfillment is directly linked to the launch of a pilot insurance product, which is scheduled for March 2018. With the product launch, most of the currently unchecked indicators will be automatically met - as the product launch requires completion of product supporting IT infrastructure, development and launch of the claims management platform, training of agents, and involvement of partner insurance companies. We expect that the next ISR in 6 months from now will see a market improvement across the majority of all indicators. 3/5/2018 Public Disclosure Copy Page 6 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Kazakhstan: Southeast Europe and Central Asia Catastrophe Risk Insurance Facility (P152230) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P152230 TF-A1934 Effective USD 5.00 5.00 0.00 1.26 3.74 25% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152230 TF-A1934 Effective 20-Apr-2016 20-Apr-2016 25-May-2016 31-Dec-2019 31-Dec-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 3/5/2018 Public Disclosure Copy Page 7 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Kazakhstan: Southeast Europe and Central Asia Catastrophe Risk Insurance Facility (P152230) There are no related projects. 3/5/2018 Public Disclosure Copy Page 8 of 8