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: 6 | ARCHIVED on 15-Oct-2019 | ISR38560 | 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 a one-year delay, was approved by ECNEC and later became effective on 8 July 2018. As a result of this delay, the progress towards achievement of the development objective has slowed down and the progress rating was downgraded to Moderately Satisfactory. Given the limited time remaining to implement the project, it is important to speed up the implementation of project’s activities and to adhere to the timelines of the action plan and procurement roadmap. 10/15/2019 Page 1 of 6 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 Sustainability Substantial Substantial Substantial 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 IN00744124 ►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 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744125 ►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 17,000,000.00 19,738,427.00 22,000,000.00 Date 31-Dec-2015 31-Dec-2018 30-Jun-2019 31-Aug-2022 Intermediate Results Indicators by Components 10/15/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Improving the Capacity of the Insurance Development and Regulatory Authority (IDRA) and the Bangladesh Insurance Academy (BIA) IN00744166 ►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 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744169 ►On-site inspections of insurance companies performed annually by IDRA (Number, Custom) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 10.00 31.00 60.00 Date 31-Dec-2015 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744172 ►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 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744175 ►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 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744177 ►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 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744179 ►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 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744181 ►Mortality and Morbidity tables produced (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 10/15/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) Value No No No Yes Date 31-Dec-2015 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744183 ►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 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744184 ►Number of people who receive ABIA Diplomas and Cerficates (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 115.00 600.00 Date 31-Dec-2015 31-Dec-2018 30-Jun-2019 31-Aug-2022 Modernization, Strengthening and Increasing the Efficiency of the State-owned Insurance Corporations IN00744167 ►Life Insurance policies that lapse after one year at JBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 33.39 49.43 30.00 Date 31-Dec-2015 31-Dec-2018 31-Dec-2018 31-Aug-2022 IN00744170 ►Total number of policy holders at JBC and SBC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 463,000.00 515,436.00 424,351.00 550,000.00 Date 31-Dec-2015 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744173 ►Net Claims ratio at JBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 66.00 65.18 73.48 80.00 Date 31-Dec-2015 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744176 ►Net Claims ratio at SBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 35.00 37.82 60.00 Date 31-Dec-2015 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744178 10/15/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) ►Premium growth rate at JBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 9.40 10.71 15.00 Date 31-Dec-2015 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744180 ►Premiums growth rate at SBC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 7.00 4.13 15.00 Date 31-Dec-2015 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744182 ►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 31-Dec-2018 30-Jun-2019 31-Aug-2022 Project Implementation, Management, and Monitoring IN00744168 ►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 31-Dec-2018 30-Jun-2019 31-Aug-2022 IN00744171 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 IN00744174 ►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 31-Dec-2018 30-Jun-2019 31-Aug-2022 Data on Financial Performance Disbursements (by loan) 10/15/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Bangladesh Insurance Sector Development Project (P156823) 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 Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/15/2019 Page 6 of 6