Southeast Europe Catastrophe Risk Insurance Facility, Phase II

Project completed

The Southeast Europe Catastrophe Risk Insurance Facility (henceforth, the facility) aims at addressing the problem of low private catastrophe risk insurance penetration in Albania, Bosnia and Herzegowina, Macedonia as well as Serbia. The facility was launched by the World Bank Group and is implemented by Europa Re, a private implementing agency.

Country/region Period Budget
Albania
Bosnia and Herzegovina
Macedonia
Serbia
31.05.2015 - 31.05.2018
CHF 3'949'575
Background Countries of Southeastern Europe (SEE) are highly vulnerable to natural hazards while the governments in the region have extremely limited financial capacity to assist their populations in regaining assets and productive capacity destroyed by natural disasters. Moreover, private catastrophe insurance and weather risk coverage among homeowners, small and medium size businesses (SMEs) and farmers is currently almost non-existent in the region.
Objectives The overall goal of the programme is to enhance the catastrophe risk insurance penetration in the Southeast Europe region and increasing access to affordable weather risk coverage and catastrophe risk insurance in the region. This ultimately enables private insurance markets to become an important conduit for catastrophe risk transfer and thus ease the pressure on governments’ budgets when large-scale weather-related disasters occur.
Medium-term outcomes Reinsurance capacity and know-how is provided to local insurance companies.New catastrophe risk insurance products become available to farmers, homeowners, and SMEs.Financial sustainability of the facility is reached by the end of 2018.The public perception towards private catastrophe risk insurance solutions has changed.Governments and and insurance regulators have been supported with a view to enact regulatory and policy reform conducive to the development of catastrophe and weather insurance markets.
Results

Expected results:   Reinsuarnce capacity is expanded to Bosnia and Herzegowina.Catastrophe risk insurance products have been developed for Bosnia and Herzegowina.Catastrophe risk products have been updated for the Albania, Macedonia as well as Serbia. New distribution channels have been put in place.Consumer education tools are developed and updated.Regulatory assistance has been provided.


Results from previous phases:   Europa Re has been established as a Swiss licensed reinsurer (as of December 2014).Innovative catastrophe insurance products have been developed and introduced in Albania, Macedonia as well as Serbia thanks to SECO's support.A modern insurance infrastructure, including a claims management systems and web-based insurance production platform, has been developed.State-of-the art risk-based insurance supervision tools and manuals have been prepared.A free interactive consumer education portal (CatMonitor) has been developed and went live.


Directorate/federal office responsible SECO
Credit area Swiss cooperation with Eastern Europe
Project partners Contract partner
  • World Bank - International Bank for Reconstruction and Development


Budget Current phase Swiss budget CHF   3'949'575 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   31'540'000
Project phases

Phase 10 31.05.2015 - 31.05.2018   (Completed)