Background

The Financial Supervisory Authority (FSA) of Albania is an independent agency set up to regulate and supervise non-bank financial institutions, namely, the insurance, private pension, and securities sectors.

Since its inception, the Albanian FSA has been involved in an intensive process of strategy development, strengthening of its legal framework, tools design, and capacity building to enable more efficient supervision of a fast growing and changing market. FSA is currently working on improving the insurance legislation, including laws and by-laws and it will greatly benefit from assistance in reviewing the drafts produced so as to reflect best international practices, customized to Albania's specific market conditions. This project was designed by FSA in collaboration with the World Bank.

Project

The GOAL of this project is to promote efficient, fair, safe and stable insurance markets for the benefit and protection of the policyholders.

The PURPOSE is to: (i) assist the Albanian Financial Supervisory Authority (FSA) in designing an effective risk-based supervisory methodology and proper supervisory platform and tools; (ii) enhance the capacity of the Albanian FSA to evaluate market participants’ risks, make efficient use of resources and prioritize its supervisory actions; (iii) strengthen the regulatory framework and supervision of insurance; and (iv) Review the necessary legal framework for the insurance market.

OUTPUTS:  The key outputs of the project will be the legal framework review for the insurance sector in line with international standards and reflecting the nature of the sector, infrastructural and general economic circumstances in FSA.

ACTIVITIES: The main activities of the project are: (i) off-site review of documentation; (ii) on-site visit and development and/or review of assessment document (RBS methodology and IT solution); (iii) development of manuals, draft legal amendments; (iv) on-site visit for delivery and training; (v) finalization of supervision methodology; and (vi) adoption of the methodology.

Project LIFE TIME is 12 months from April 2008 till March 2009.

Project BUDGET is $517,000

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