REQUEST FOR EXPRESSION OF INTEREST

Mongolia has received a credit from the International Development Association (IDA) for implementation of the Strengthening Fiscal and Financial Stability (SFFS) project. The Financial Regulatory Commission (FRC) is a beneficiary of the Project and is implementing activities under sub-component #C4. The main objective of the Sub-component is strengthening the institutional capacity of the FRC.

Recently, the FRC committed to implementing a risk-based system for the Mongolian insurance sector. Risk-based supervision, consistent with international best practices, is integral to achieving that goal. Internationally, regulators have found that, compared to the traditional solvency methodologies, risk-based supervision is a more effective and efficient way to achieve supervisory objectives. In December, 2018, the FRC introduced the first guidelines for risk-based supervision regulation; ORSA and RBC. Since then, the FRC has required insurance companies to have a risk management policy and to perform ORSAs. Challenges implementing risk-based supervision include the absence, among enterprises, of risk management frameworks, and a lack of capacity building in the market. The FRC is making progress in this area through inputs to regulations and training; for example, advising on modification of the current regulation (on risk management for the insurance sector) taking into account international trends and the Mongolian context.  For this reason, the FRC is seeking to hire an international consultant to take on the assignment of modifying the regulation on risk management system based on research of international best practices. The most feasible will be adopted into a series of domestic regulatory arrangements. The Consultant will also present some training and workshops - for the insurance companies’ management and officers in charge of reinsurance issues – to contribute to capacity building, as well.  

B. OBJECTIVE OF THE ASSIGNMENT

The objective of the assignment is to undertake comprehensive research of the current regulation of best practices on risk management – in Mongolia and internationally - and offer the most appropriate suggestions to establish an improved risk management framework in Mongolia.   

C. SCOPE OF THE WORK

The tasks of the Consultant include, but are not limited to, the following:

1. Prepare a contract implementation plan - including activities, timelines, and deliverables - within five working days of the start of the contract.
2. Review the related laws on risk management, and existing regulations on risk management systems approved by the FRC.
3. Undertake research on international best practices related to risk management frameworks and present introductory training for FRC staff.
4. Undertake comprehensive assessments, and propose timely policy recommendations to facilitate the implementation of amended regulation/s related to the following areas of research:
   • Conditions, weaknesses and shortcomings of current laws and regulations which implementing in the insurance market and Mongolian context
   • Scope to establish a risk management framework
   • Scope to improve current requirements to have risk management policy and process and ORSA
   • Scope to improve guideline for RBC
   • Scope to improve risk-based supervision regulation
   • Scope for inputs to capacity building
5. Provide professional expertise to, and discuss frequently with, a designated supervisor of the FRC; on the subject matter to gain better insight.
6. Draft and present a preliminary report; covering the comprehensive assessment result and feedback from the FRC.
7. Prepare training materials and present trainings sessions and workshops for the FRC and insurance market stakeholders.
8. Perform other tasks as reasonably requested by the FRC.

D. DELIVERABLES

The Consultant shall prepare, and present the following deliverables to the FRC:

1. Contract implementation plan (for approval by the FRC) within five days of commencement of the contract.
2. Preliminary draft report and recommendation/s based on the review and comprehensive assessment (Task 2 to 4).
3. Training materials on recommendations and the effective implementation of the amended regulation.
4. Final report on comprehensive assessment satisfactory to the Client’s requirements, incorporating their comments and suggestions regarding the draft.
5. Final Report, to be delivered within five working days of the completion of tasks.
6. The Consultant may also deliver other written outputs consistent with the scope of work, as reasonably requested by the management of the FRC.

All reports and deliverables shall be reviewed and approved by the FRC. The approval of the deliverables shall be a basis of the payments.

E. CONSULTANT’S QUALIFICATIONS AND/OR SELECTION CRITERIA

Education. The Consultant should have a master’s degree (or above) in a relevant field such as economics, actuary or finance.
Experience. Consultant should have a master’s degree (or above) in a relevant field of finance, or economics. The Consultant should have at least 10 years’ experience in the insurance and/or finance sectors; of which at least five years were in a supervisory authority or equivalent.  Working experience in insurance sector would be advantage. Experience as an actuary in regulation of the financial sector, and a senior position an organization like the FRC is preferred. A proven record in designing and implementing financial sector regulations - particularly within the insurance sector - is required.
Language skills. Fluency in written and spoken English.  
Other skills. Excellent interpersonal skills with the ability to function effectively and collaboratively in a team environment. The Consultant shall exhibit the highest standards of professional behaviour and personal integrity. The ability to work unsupervised is essential.

F. SUPERVISION AND REPORTING

The Consultant will report directly to the Director of the International Cooperation Department, FRC.

G. CONTRACT DURATION

The Consultant’s work is expected to commence in May, 2019. The duration of the assignment will be 21 working days.

H. INSTITUTIONAL ARRANGEMENTS

The FRC will provide office space and assign a Coordinating Consultant to work with the Consultant. The Consultant will have access all necessary data and information which the FRC can provide. Officials of the Insurance Department will provide technical assistance and any other necessary information that might be requested by the Consultant. The Consultant will be asked to use his/her own notebook/computer.

The consultant will be selected in accordance with the World Bank’s Procurement Regulations for IPF Borrowers (July 2016).

If you possess the above qualifications, please submit following documents via email to procurement@sffs.mn:
    1. Cover letter indicating why she/he considers her/himself suitable for the position,
    2. Detailed CV highlighting relevant skills/experience,
    3. Copy of diplomas or certificates and,
    4. 2 reference letters from previous last two employers no later than 17:00, May 08, 2019.

The submitted documents will not be returned to the applicants. Please note that incomplete applications would not be considered for evaluation. Only selected candidates will be contacted. Candidates can be interviewed. Detailed terms of reference can be requested from procurement@sffs.mn Contact address: Attn: Ms.Bayarmaa, Procurement Specialist, Strengthening Fiscal and Financial Stability Project
Room #204, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia; Tel: 70120582

70120582