VIETNAM National Task Force Meeting May 23 rd

VIETNAM National Task Force Meeting May 23 rd 2019 Hanoi Page 1

Agenda and Flow of the Meeting Time 8: 30 – 9: 00 – 9: 10 – 9: 45 Activity Arrival and Registration of participants Opening messages Presentation of the workplan of RFPI and of each partner Review of conceptual framework 10: 00 – 10: 30 Alignment of objectives and roles of project and partners Agreement on timeline of project activities and collaboration between each partner Proposed project business model 10: 30 – 11. 00 11: 00 – 11: 30 11. 30 – 11. 40 12: 10 Criteria for the selection of project areas/provinces CRI Monitoring & Evaluation concept Conclusion Lunch Break 9: 45 – 10: 00 May 20, 2019 1 s t Climate Risk Insurance National Task Force Page 2

GIZ RFPI III – Overview of Conceptual Framework (Vietnam) I. POLICY AND REGULATION A. Developing implementing guidelines (integration of CRI/DRI solutions) for: 1) Decree 58/2018/ND-CP Expansion of Agriculture Insurance 2) Microinsurance decree (currently in draft form) B. Dissemination of the guidelines (including designing of communication materials & strategy) II. BUSINESS MODEL III. USE OF TECHNOLOGY A. Data: CRI risk assessment (GIZ RIICE experience) A. Developing a tech platform to support: B. CRI Product development for two market segments 1) Agriculture sector (indexbased) 1) Risk modelling, product development and delivery 2) Awareness raising 2) Microinsurance sector C. Raising Insurance awareness 3) Learning management IV. CRI HUB (through MEFIN Network) A. Capacity Development (CD) of public and private stakeholders (formulation & dissemination of the implementing guidelines, risk assessment, modelling, product development, weather-index based insurance) B. Knowledge Management (KM) C. Public Private Dialogue (PPD) Page 3 Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia (RFPI Asia III) www. inclusiveinsuranceasia. com

RFPI VN Workplan Short term objective: 1. Support for the implementation of agricultural insurance in the context of climate – risk 2. Support for the conceptualization and formulation of disaster risk insurance in Vietnam Study of disaster risk insurance and climate risk insurance in Vietnam MOF Review of DRI policies Evaluation of existing international CRI experiences ("good practices"). MOF, MARD, IAV, VNFU, VWU Study trip MOF Technical meetings, workshop to develop concept papers Advising the partner organizations on the development of CRI/DRI concept papers in Vietnam context MARD, MOF Advising partner governments on the formulation of policy papers on the integration of CRI into their DRM, social protection and mitigation measures. Identification of partners for the development and marketing of IAV CRI/DRI products. Agriculture insurance (product, distribution, handbook, etc) Technical workshops Analysis of the services of aggregators (i. e. distribution channels such as microfinance institutions, insurance brokers), taking into account the adjusted KPIs. IAV, MOF, VNFU, VWU Research on biz model, channels, material, communication, etc. Advising the private insurance industry on the establishment of CRI/AI consortium. IAV and MOF Study on conditions for insurers Advising partners (including selected insurers) on the development of high quality CRI products in reference of the KPI. VWU Biz models, products, digital distribution channels May 23, 2019 2 nd Climate Risk Insurance National Task Force Page 4

Agenda Item No. 2 Criteria-setting for the Selection of Project Areas Action Needed For Approval: Selection criteria, number of areas to be supported by RFPI Page 5

Criteria-setting for the Selection of CRI Project Areas Purpose of discussion: • Give overview how other climate and disaster risk insurance initiatives selected their project areas and beneficiaries • Enable NTF members to decide set of criteria to consider in selecting CRI Program project areas Expected engagements with project areas: • Review of local climate change and disaster risk reduction and management policy and funding priorities • Product development and launch • Inclusion in information and education campaigns Page 6

Example of PHIL ADB Philippine City Disaster Insurance Pool • • • Provides parametric insurance cover against typhoons and earthquakes through risk pooling arrangement Aim is to rapid postdisaster financing for early recovery Initial pool capital provided by government with reinsurance purchased from domestic and international markets World Bank Parametric Insurance Pilot • PHP 1 billion cover against typhoons and earthquakes for NGAs and 25 highly vulnerable provinces provided through GSIS Page 7

• Focus of joint disaster risk management interventions by government and development actors has been INSTITUTIONAL STRENGTHENING • stocktaking of DRM investments • evaluation of international best practices • improving information systems • enhancing regulatory frameworks for infrastructure management • capacity building for local planning • developing guidelines and action plans for awareness raising OPPORTUNITY to develop concrete financial protection products/instruments to benefit households, farmers! Page 8

National Agriculture Insurance Pilot Program Page 9

Proposed criteria to use in selecting priority areas • Inclusion in priority areas of Climate Change and disasters (VDMA) • Demographic and economic size • Geographic location • Hazards data availability • Disaster risk management governance (presence of champion) • Risk exposure to typhoon and flood • Support of local champion • Presence and reach of distribution channels (ex. MFIs, pawnshops) • Concentration of MSMEs Page 10

Agenda Item No. 3 CRI Monitoring & Evaluation (M&E) Concept Action Needed For Approval Page 11

CRI Monitoring & Evaluation Concept Joint Monitoring & Evaluation Components 1. Sustainable Development Goals (SDGs) Monitoring 2. Integration with the Community-Based Monitoring System 3. RFPI III Internal M&E Page 12

SDGs Monitoring LGU Scorecar d SDGs SDG 1 No poverty SDG 2 Zero hunger SDG 3 Good Health SDG 8 Sustainable economic growth SDG 9 Industry, Innovation and Infrastructure SDG 11 Sustainable Cities and Communities SDG 13 Climate adaptation measures Page 13

Integration with the Community-Based Monitoring System Social protection: CRI CBMS Key Indicators Ex. # of households with CRI coverage Page 14

OI. 2 OI. 3 OI. 4 4 million (50% women) of the poorest and most at-risk populations in three partner countries are covered by new CRI products offered by governments. 3 new digitally supported business models, 1 of which focuses on payment modalities, have been introduced with insurers. 2 international standard implementation plans for the regulation of CRI solutions have been developed by insurance supervisors of the partner countries. Component 1 National CRI concept Component 2 Product Development OI. 1 Objective Indicators (OI) 3 partner governments have included CRI explicitly targeting the poor, the extremely poor, and most at-risk in their national resilience strategies. Component 3 Use of digital technologies OBJECTIVE LEVEL Component 4 MEFIN network , a CRI Hub Deliverables RESULTS LEVEL RI. 1 Results Indicator (RI) 3 CRI concept papers developed by the national CRI task forces RI. 2 Cross-border criteria for high-quality CRI products are coordinated by relevant actors RI. 3 In 2 countries, members of 2 CRI insurance groups are qualified to develop high quality products RI. 4 4 new CRI-relevant knowledge products on digital technologies are developed together with insurers and presented at 4 different events RI. 5 3 Proposals for customer protection regarding the regulation of digital technologies (including cyber security) in CRI products have been promulgated with the insurance supervisors in cooperation with A 2 ii. RI. 6 5 of 7 MEFIN-affiliated insurance supervisors agree that the project-supported events and knowledge products of the 3 insurance regulators in 3 partner countries are useful in implementing CRI and A 2 ii-related topics for the implementation of regulations. Roadmap for sustained support of insurance supervisors to RI. 7 inclusive insurance markets & the strengthening of MEFIN has been developed with the A 2 ii. Page 15

Agenda Item No. 4 Next Steps Action Needed For Approval: Date of next NTF meeting Page 16

Proposed next meetings dates and agenda items Schedules 2 nd TWG Policy & Regulation August 9: 00 – 12: 00 Agenda Please refer to reference material 2 nd TWG Business Model & August Use of Technology 14: 00 – 17: 00 (combined) 3 rd TWG Policy & Regulation November 9: 00 – 12: 00 (parallel meetings) 3 rd TWG Business Model & Use of Technology (combined) November 9: 00 – 12: 00 (parallel meetings) 2 nd NTF Meeting November 9: 00 – 12: 00 Page 17

#END# Thank You Page 18