📋 Tender Overview
Project Name
Insurance Transformation Program
Project Number
58504-001
Country / Economy
Pakistan
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
Loan: : Insurance Sector Development Program
Ordinary capital resources US$ 750.00 million
Sector / Subsector
Finance / Insurance and contractual savings
Gender
Effective gender mainstreaming
Description
The objective of the proposed Insurance Sector Development Program (ISDP) is to increase insurance penetration across Pakistan and to reduce the social protection gap by strengthening the insurance industry's capacity, resilience, and efficiency. The proposed ISDP of $540 million to the Government of Pakistan includes (i) a policy-based loan of $500 million to be delivered through a programmatic approach over 3 subprograms, and (ii) a project loan of $40 million. The Insurance Sector Development Program will support the sequencing of the reforms to (i) enhance the legal and regulatory environment for deepening the insurance sector, (ii) improve institutional capacity across the industry by enabling digitization, and (iii) create greater demand for insurance through enhanced consumer awareness and implementation of compulsory insurance schemes.
Project Rationale and Linkage to Country/Regional Strategy
The program is consistent with the 5-year road map of the Securities and Exchange Commission of Pakistan (SECP) for developing the insurance sector, National Financial Inclusion Strategy, National Climate Change Policy 2021, and Pakistan Vision 2025. The program benefits from a $0.5 million technical assistance (TA) grant from the Technical Assistance Special Fund (TASF-7). The ISDP is aligned with the five key operational priorities (OPs) of the Asian Development Bank (ADB) Strategy 2030: specifically (i) OP1 on addressing remaining poverty and reducing inequalities; (ii) OP2 on accelerating progress in gender equality; (iii) OP3 on tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; (iv) OP5 on rural development and food security; and (v) OP6 on strengthening governance and institutional capacity.
Impact
The proposed program is consistent with the 5-year SECP road map for addressing the binding constraints to narrowing the protection gap and expanding insurance penetration.
Outcome
Reduced insurance protection gap and increased insurance penetration in Pakistan.
Outputs
Geographical Location
Nation-wide
