Insurance Industry Reform

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This technical cooperation (TC) grant seeks to improve the functioning of the insurance market in order to foster the rapid development of the Paraguayan private sector, through five subprograms: (a) Superintendency of Insurance (SIS) staff strengthening; (b) outside consultancy for preparation of legislation and standards, chart of accounts, manuals, guidelines, data collection, and business accounting; (c) establishment of a risk registry and a complaint system; (d) training; and (e) equipment. The first subprogram, strengthening of SIS staff, funds the hiring of additional personnel to ensure enough qualified staff to carry out the tasks envisioned. The second subprogram seeks to: (a) issue regulations for the insurance law and corresponding standards; (b) develop a new chart of accounts for insurance companies; (c) prepare manuals and guidelines; and (d) improve computer systems for automatic data collection and modernization of insurance company accounting procedures. The third subprogram focuses on developing two main systems to improve competitiveness and quality in the insurance sector: (a) a risk registry with a centralized database capable of providing information on claims by region and subsector; and (b) a client complaint system for tracking fulfillment of contracts and degree of client satisfaction with each insurance company. The fourth subprogram funds improved technical training for 22 SIS officials and 30 private-sector trainers, who will then disseminate knowledge throughout the sector. The fifth subprogram funds the procurement of computers with modern features in order to improve SIS's operational capacity.