Enhancing Resilience in Kyrgyzstan Project: Consulting Services: Actuarial Assessment of Losses on the Insurance Portfolio and Development of Risk-Based Insurance Pricing for the Program of Compulsory Insurance Against Natural Disasters in the Kyrgyz Republic

Project ID: P162635

Project Title: Enhancing Resilience in Kyrgyzstan Project

Borrower Bid Reference: KG-CS/CQS-07

Published Date: 29-Mar-2023

Details:

Request for Expression of Interest (Consulting Services - Competitive Selection of a Firm Based on Qualifications)

Enhancing Resilience in Kyrgyzstan Project (ERIK)

Loan No. IDA 66870 Grant No. IDA D6550

Assignment Title: Actuarial assessment of losses on the insurance portfolio and development of risk-based insurance pricing for the program of compulsory insurance against natural disasters in the Kyrgyz Republic

Tender No. KG-CS/CQS-07

Kyrgyzstan is a country highly vulnerable to natural disasters. According to the Ministry of Emergency Situations of the Kyrgyz Republic (MoES), the country suffers from both periodic and intense natural disasters, with more than 200 emergencies occurring each year. Among periodic natural disasters, the Kyrgyz Republic is prone to fires, floods, landslides, mudflows, avalanches, hurricanes and rising groundwater levels, among others. The country is also subject to catastrophic damage and loss from high-intensity, low-frequency events such as earthquakes. Since 1990, more than 2.3 million people have been affected by 29 major natural disasters. On average, natural disasters in the Kyrgyz Republic cause an annual economic loss of about US$30-35 million (or 1.0-1.5% of GDP).

The World Bank is supporting the Government of the Kyrgyz Republic in its efforts to improve disaster insurance under Component 3 “Enhancing Financial Protection and Insurance Against Natural Disaster Risks” of the “Enhancing Resilience in Kyrgyzstan” (ERIK) project. This project aims to strengthen insurance against natural disasters and create conditions for the effective implementation and management of insurance companies in the Kyrgyz Republic.

Currently, within the framework of this project activities are underway to develop a probabilistic model of earthquake risk. This model will allow assessing the size of potential insurance losses and tracking risk accumulation (including future changes in the insurance portfolio), and can also be used in the development of insurance rates based on earthquake risk (by CRESTA zones and/or at the national level, and/or by building class).

Objective of the assignment:

          Actuarial assessment of potential losses for the insurance portfolio (for all disasters except earthquakes).

          Development of tariffs based on the risk for all disasters, including earthquakes (a) for each individual risk and (b) all risks combined and (c) development of deductible rates depending on the class (type) and quality of construction of dwellings and potentially by CRESTA zones.

          Study and calculate alternative options for the structure of insurance coverage in conjunction with various alternative tariff options, depending on the availability and type of reinsurance, and impact of reducing the number of insured risks, reducing the insurance amount of the policy, the size of the deductible, the cost of the insurance policy, and so on.

            The start of the assignment is scheduled for June 2023. The expected duration of the assignment is approximately 6 months after the contract is signed with the selected Consultant.

            Detailed terms of reference (TOR) can be found at the following links www.zakupki.gov.kg (Tenders announced by Projects), www.donors.kg  or at the email address below.

The project "Enhancing Resilience in Kyrgyzstan" invites eligible consulting companies (Consultants) to express their interest in providing services: Actuarial assessment of losses on the insurance portfolio and development of risk-based insurance pricing for the program of compulsory insurance against natural disasters in the Kyrgyz Republic.

Interested companies must provide information confirming their qualifications and relevant experience in providing services. The consulting company must meet the following qualification requirements (expression of interest stage):

• Pricing and reserving experience and expertise: Proven experience and expertise in at least three different projects in the last 10 years involving actuarial pricing and reserving for general insurance and disaster risk insurance for residential property. Additional knowledge and proven experience in the underwriting area is an advantage.
• Experience in the line of business of disaster insurance and work with governments: Demonstrated experience of work with catastrophe risks in at least three projects/programs on the development of residential property insurance products. Experience of work using limited historical data such as with governments is a substantial advantage.
• Risk and capital management: Proven experience involving developing risk management and capital management strategies to achieve the strategic objectives of large-scale insurance programs and advising on possible mechanisms to ensure appropriate risk management.

            After evaluating the received expressions of interest from consulting companies, only the most qualified company (with the highest score) will be invited to submit technical and financial proposals.

            Key people will not be assessed at the expression of interest stage.

            Consultants should pay attention to paragraphs 3.14, 3.16, and 3.17 of Section III of the World Bank's Procurement Regulations for IPF Borrowers issued in July 2016, revised in November 2017 and 2018 (Procurement Regulations), which set out the World Bank's policy on conflict of interest.

            Consultants may associate with other companies to expand their qualifications, but must clearly state that the association is in the form of a joint venture and/or sub-consultants. In the case of a joint venture, all partners in the joint venture must be collectively or individually responsible for the implementation of the assignment.

            The consultant will be selected in accordance with the CQS - selection based on the qualifications of the consultant specified in the Procurement Regulations. For more information, please contact the address below during business hours from 09.00 to 18.00 (local time).

            Expressions of interest must be submitted in writing to the address below (by courier, mail, fax, or email) no later than April 13, 2023, by 6:00 pm local time.

To: Zhyldyz Toktorbaeva, Director of the Project Implementation Unit under the Ministry of Emergency Situations of the Kyrgyz Republic

Address: Kyrgyz Republic, Bishkek, Manas Ave. 101/1, 3rd floor

Tel: +996 (312) 323876  +996505 912515

E-mail: erikprocurement@gmail.com 

Organization/Department: Ministry of Emergency Situations

Name: Zhyldyz Toktorbaeva

Address: 101/1 Manas ave. Bishkek

City:

Province/State:

Postal Code:

Country: Kyrgyz Republic

Phone: +996312323876

Email: jtoktorbaeva@mail.ru

Website: www.mes.kg