1. Page 1 “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 Twinning project BA 07 IB FI 01

2. Page 2 Twinning project BA 07 IB FI 01 This project is funded by the European Union and is implemented by the Bulgarian Financial Supervision Commission Budget: EUR 799,875 Duration: 27 months (including 24 months implementation of the action). The starting date of the project is April 21, 2010. General information

3. Page 3 Beneficiaries Insurance Agency of Bosnia and Herzegovina (IABiH) Insurance Supervisory Agency of Federation of Bosnia and Herzegovina (ISAFBiH) Insurance Agency of Republika Srpska (IARS)

4. Page 4 Member state partner Bulgarian Financial Supervision Commission (BFSC)

5. Page 5 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 Project’s Structure

6. Page 6 Mid- and long-term training strategy developed and implemented: Project’s Achievements: Training strategy 16 seminars and trainings inside Bosnia and Herzegovina: Train-the-trainersExplanation 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

7. Page 7 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

8. Page 8 Project’s Achievements: Laws and bylaws drafting-1 4 Draft laws Entity level: Insurance regulation and supervision Complete transposition of Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II Directive) State level: Amendment to the Law on IABiH Entity level: Amendments to obligatory Motor third party liability laws (2) 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)

9. Page 9 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;  Templates appropriate for the current situation. State level: sharing statistical data 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.

10. Page 10 Project’s Achievements: Advice Statistical Service 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: 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: 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.

11. Page 11 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

12. Page 12 Other Results Establishment of effective cooperation between the IABiH and the Green Card Bureau of BiH 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.

13. Page 13 Participants in the activities 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).

14. Page 14 Expertise involved from MS partner 539 working days 35 EU MS experts in Sarajevo and Banja Luka 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.

15. Page 15 Conclusion Project results are an important step towards the preparation of the beneficiary country for the negotiation process to EU accession

16. Page 16 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; 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.

17. Page 17 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 in their ongoing activities and in the upcoming process of accession to the EU.

18. Page 18 “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! Twinning project BA 07 IB FI 01