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Twinning project BA 07 IB FI 01
“EU Support for Sustainable Capacity Building of the
Insurance Agency of Bosnia and Herzegovina and the FBiH
and RS Insurance Supervisory
Agencies”
PROJECT DELIVERABLES
Nikolay Petkov
Resident Twining Adviser
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General information
Twinning project BA 07 IB FI 01

This project is funded by the European Union
and is implemented by the Bulgarian
Financial Supervision Commission
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Budget: EUR 799,875
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Duration: 27 months (including 24 months
implementation of the action). The starting
date of the project is April 21, 2010.
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Beneficiaries

Insurance Agency of Bosnia and
Herzegovina (IABiH)

Insurance Supervisory Agency of Federation
of Bosnia and Herzegovina (ISAFBiH)

Insurance Agency of Republika Srpska
(IARS)
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Member state partner
Bulgarian Financial Supervision Commission
(BFSC)
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Project’s Structure
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Development of the administrative capacity of the IABiH and
of the Entity agencies;
Development of the information exchange and statistical
service;
Development of the legislation and the supervisory
practices:
 Development of the legislation,
 Development of the arbitration functions of the IABiH,
 Development of the reporting function of the IABiH,
 Development of the function of the IABiH related to the
insurance of export credits.
Motor Third Party Liability Insurance and interaction with the
Green Card Bureau:
 General Issues of MTPL insurance
 Interaction with the Green Card Bureau
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Project’s Achievements:
Training strategy

Mid- and long-term training strategy developed and
implemented:
16 seminars and trainings inside Bosnia and Herzegovina:
Train-the-trainers
Explanation of legislative proposals
and other deliverables (3)
Capacity –building (2)
Arbitration and mediation
Solvency II (2)
Market analysis and reporting
EU integration (2)
Export credit insurance
MTPL (2)
Seminar for journalists
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Project’s Achievements:
Training strategy
4 study visits and trainings in EU Member States
ISVAP – Rome, Italy
EIPA - EU Financial Services Law: New Regulatory and Supervisory
Framework for Insurance, Luxemburg
Bulgarian Export Insurance Agency - Sofia, Bulgaria
Institutions related to the MTPL – Brussels, Belgium
4 workshops for improvement of cooperation between
beneficiary institutions
Treatment of
reinsurers
Draft coordination
mechanism
Supervision of
branches between
entities
1 international conference carried out
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Project’s Achievements:
Laws and bylaws drafting-1
4 Draft laws
Entity level: Insurance regulation and
supervision
State level: Amendment to the Law on
IABiH
Entity level: Amendments to obligatory
Motor third party liability laws (2)
Complete transposition of Directive
2009/138/EC on the taking-up and
pursuit of the business of Insurance
and Reinsurance (Solvency II
Directive)
Complete transposition of Directive
2009/103/EC relating to insurance
against civil liability in respect of the
use of motor vehicles, and the
enforcement of the obligation to insure
against such liability (MTPL Directive)
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Project’s Achievements:
Laws and bylaws drafting-2
4 Draft bylaws
Entity level: collection of statistical
data from insurance undertakings
Templates harmonised with the
requirements of the Solvency II
Directive;
State level: sharing statistical data
Templates appropriate for the
current situation.
State level: Draft Rulebook on the
internal organisation of IABiH
Including detailed job descriptions of
the employees of the IABiH
State level: Draft Rulebook on
mediation and arbitration
In addition:
optional proposals for amendment of
the law provided,
advice for the discharge of dispute
settlement functions provided.
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Project’s Achievements:
Advice Statistical Service
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Extensive analysis of activity of gathering of statistical information conclusions, proposals and recommendations made.
Proposed functional tool for pooling information from entity agencies
for the purposes of State level aggregation of data:
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Output tables
Input tables
Links to the existing statistical tables of the Entity agencies
The tool is customised and ready to use without further investment.
 Risk matrix prepared to aid the analysis of the financial reports and
risk based supervision:
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assessment of the probability or risk of an insurer’s failure, and
the impact of such a failure on supervision authority achieving its
statutory objectives (i.e. protecting the interest of customers and market
stability).
The tool is customised and ready to use without further investment.
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Project’s Achievements:
Advice in other areas
Improvement of the web site of IABiH
Proposal for the development of the
design and the outlook,
Technical proposal for the upgrade of the
IABiH website,
Templates for upload of statistical
information on the web site.
Reporting obligations of IABiH
Towards EC, EIOPC, EIOPA, other
supervisory authorities under the protocols
for collaboration, EUROSTAT;
14 annexes with relevant templates and
other forms provided.
Export credit insurance
practices of export credit insurance in 11
countries,
Advice for amendments in legislation.
Improvement of the institutions MTPL
Two proposals - discussions
Uninsured Driving
Analysis local system,
Practices of 5 EU Countries
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Other Results
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Establishment of effective cooperation
between the IABiH and the Green Card
Bureau of BiH
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Three workshops held for establishing contact
and pattern of work in pursuit of common
goals;
Operative agreement reached on draft
protocol on cooperation and exchange of
information.
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Participants in the activities
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152 experts from Bosnia and Herzegovina
 11 from IABiH;
 14 from ISAFBiH;
 18 from IARS,
 38 from other government institutions in BiH,
 62 from non-government institutions and insurance
companies,
 9 journalists.
16 guests from other countries (Albania, Bulgaria,
Croatia, Macedonia, Montenegro, Romania, Serbia,
Services of the European Union).
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Expertise involved from MS partner
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539 working days
35 EU MS experts in Sarajevo and Banja Luka
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29 experts from the BFSC,
2 experts from the Bulgarian Export Insurance Agency,
1 expert from the Bulgarian National Bank,
1 expert from the Bulgarian Ministry of Finance,
1 expert from the Insurance Supervisor of Romania
and
1 expert from the Insurance Supervisor of Slovenia.
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Conclusion
Project results are an important step
towards the preparation of the beneficiary
country for the negotiation process to EU
accession
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Conclusion
Project provided:
 Full database of documents to enable harmonisation of the BiH
legislation with the requirements that are to be expected in the
process of accession to the EU;
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Comprehensive database of reference materials enabling upgrade
of capacity of the beneficiary agencies.
The overall effect of the project deliverables can lead to:
 Creation better business environment
 Integrity of the market and supervision thereof;
 Smooth accession of BiH insurance sector to the Common EU
Market of services.
 Increased competition, protection of customers and better
conditions for foreign investments in Bosnia and Herzegovina.
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Conclusion
Project contributed to:
 enhance cooperation with international and domestic
stakeholders;
 skills, knowledge and contacts development
which can enable independent development of the State
and Entity Insurance agencies both
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in their ongoing activities and
in the upcoming process of accession to the EU.
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Twinning project BA 07 IB FI 01
“EU Support for Sustainable Capacity Building of the
Insurance Agency of Bosnia and Herzegovina and the FBiH
and RS Insurance Supervisory Agencies”
Thank you for your attention!
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