Assessment of Reinsurance Credit Risk Platform (“RCRP”) Tender, USA - 102985800

Procurement Summary

Country : USA

Summary : Assessment of Reinsurance Credit Risk Platform (“RCRP”)

Deadline : 27 Jun 2024

Other Information

Notice Type : Tender

TOT Ref.No.: 102985800

Document Ref. No. : 0002008434

Competition : ICB

Financier : International Finance Corporation (IFC)

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Request for proposals are invited for Assessment of Reinsurance Credit Risk Platform (“RCRP”).

The World Bank Group-s Financial Institutions Group (FIG) focuses on providing financial products and services to financial institutions in emerging markets. Its primary objective is to promote sustainable and inclusive economic growth by supporting the development of a strong and resilient financial sector. The Insurance Unit within FIG makes financial investments to promote the development of accessible and affordable insurance markets in emerging markets. The global insurance marketplace benefits from transfer of peak risks to efficient carriers; mainly the global reinsurers. In some event; these reinsurers struggle to gain a large foothold in smaller; local insurance markets; due to inefficiencies of scale; data and transaction cost. With the increasing frequency and severity of major catastrophic risks in the recent years; such as natural disasters; pandemics and cybersecurity breaches; affecting specifically less mature markets; local or regional reinsurance companies in these emerging markets play a key role in aggregating such risks. Their risk portfolios tend to be limited both in geographical and sectoral diversity; thus exposing them to clash risks and insufficient diversification. The IFC team would like to explore the feasibility of extending its balance sheet and support to such local/regional reinsurers to enable them to better participate in international reinsurance transactions to seek better diversification; thereby strengthening their overall capacity to play a key role in their home market. The ultimate goal is to evaluate if this guarantee from a AAA-rated entity like IFC could substitute for the ratings and/or replace other financial instruments (e.g.; letter of credit; cash collateral requirements; reinsurance contracts; surety bonds; etc) so that these companies can participate in markets or transactions where key stakeholders and beneficiaries require higher financial strength rating requirements from the major international ratings agencies (A.M. Best; Moody-s; Fitch & S&P). If feasible; IFC-s role through the creation of this platform would then allow local players to increase their financial and technical capacity on large; complex risks and expand their operations internationally; increasing their own diversification and stimulating competition in the international reinsurance market. Ultimately; this would also reinforce their own standing in their home market. In this regard; IFC is looking for a vendor firm to produce a global assessment report of regulatory and market conditions about the dynamics related to guarantee schemes. The analysis will cover the reinsurance value chain in the regions of Africa and Asia; focusing on key markets such as Turkiye; Nigeria; Kenya; South Africa; Brazil; Philippines; Indonesia; India and Vietnam; or any other markets in these regions that the vendor believes could represent significant demand for the structure/platform.

Documents

 Tender Notice