Financial Sector Technical Assistancel: Consultancy Services to Develop Insurance Group-Wide Supervision Framework

EXPRESSIONS OF INTEREST FOR CONSULTANCY SERVICES TO DEVELOP INSURANCE GROUP-WIDE SUPERVISION FRAMEWORK.

(INDIVIDUAL CONSULTANT)

1. The Government of the Republic of Malawi has received financing from the International Development Association (IDA) of the World Bank toward the cost of the Financial Sector Technical Assistance Project (FSTAP), and intends to apply part of the proceeds for consultancy services to develop insurance group-wide supervision framework.
2. OBJECTIVE OF THE ASSIGNMENT

The main objective of the assignment is to (1) develop a group-wide supervision framework for insurance groups operating in Malawi, and (2) build RBM's capacity to effectively carry out supervision of insurance groups.

1. SCOPE OF THE ASSIGNMENT

The scope of the assignment shall cover the following areas:

1. Defining the scope of group-wide supervision which provide the definition of an insurance group for group-wide supervision purposes.
2. Setting preconditions for implementation of group-wide supervision framework. This should include assessment of the following:
   1. Supervisory power, legal authority, capacity and capabilities, including skills, resources and experiences to carry out group-wide supervision
   2. The ability and willingness to cooperate with other relevant supervisors on cross-border and/or cross sector basis, including information sharing, in a secure environment based on mutual trust, understanding and confidence.
   3. A clear understanding of an insurance group for group-wide supervision (nature, scale and complexity of insurance groups).
   4. Developing group-wide regulatory requirements. At the minimum, the group-wide supervisory framework should include the following:
      1. Solvency assessment (group-wide solvency)
      2. Governance, risk management and internal controls (group-wide governance)
      3. Market conduct (group-wide market conduct)
      4. Complexity of group structures
      5. Cross-border/cross-sectoral issues, including group-wider supervisors and supervisory colleges
      6. Interplay with legal entity supervision
      7. Non-regulated entities.
      8. Developing group-wide supervisory review and reporting (group-wide supervisory assessment). A group-wide supervision framework should provide supervisors with the authority to carry out supervisory assessments by providing for access to information and on-site examination and off-site monitoring. The framework should also provide for remedial or enforcement action to be taken in coordination with other involved supervisors, where required and appropriate.
      9. Conducting pilot on-site examination of one insurance group operating in Malawi.
      10. Conducting training workshops for RBM staff on group-wide supervision.
3. DELIVERABLES

The Consultant will be required to deliver the following

1. An inception report at the end of the initial visit defining the scope of group-wide supervision and insurance groups, and assessing the preconditions for group-wide supervision.
2. Group-wide regulatory requirements on solvency, governance, risk management, internal control, market conduct, group structures, cross border/cross sectoral issues, non-regulated entities, and other relevant areas.
3. Off-site and on-site supervisory manuals for use by RBM staff when carrying out group-wide supervision.
4. Pilot on-site examination of an insurance group operating in Malawi.
5. At least two training workshops for RBM staff on group-wide supervision.
6. A comprehensive final report covering all areas of work done and consolidating all deliverables of the consultancy.
7. QUALIFICATIONS REQUIREMENTS

The consultant must meet all of the following qualifications:

1. Master's degree in Actuarial Science, Economics, Finance or and Business Administration.
2. At least 10 years' experience in the regulation and supervision of insurance companies.
3. Strong understanding of insurance group regulation and supervision.
4. REPORTING REQUIREMENTS

The Consultant will be required to report to the Director of Pension and Insurance Supervision Department of the RBM.

1. SELECTION OF CONSULTANT

The consultant will be selected in accordance with the World Bank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers, of January, 2011 revised in 2014.

1. DURATION OF THE ASSIGNMENT

The duration of the assignment shall be a period of five (5) months from contract signing.

10.   SUBMISSION OF EXPRESSION OF INTEREST

Interested individual consultants must provide information indicating that they are qualified to perform the services (i.e. brochures, description of similar assignments, experience in similar conditions etc.).

Interested consultants may obtain further information at the address below during office hours i.e. 0900 to 1700 hours local time.

Expressions of interest must be delivered to the address below by 4^th July 2016.

(Signed by)

Project Manager,

Financial Sector Technical Assistance Project (FSTAP),

Reserve Bank of Malawi,

Convention Drive,

P.O. Box 30063,

Capital City,

Lilongwe 3

TEL: (265) 1 770 600/771 600

FAX: (265) 1 773 752