IFG, as a subcontractor, is responsible for achieving the results defined in the project contract and ensuring their quality.

The beneficiary of the project is the Insurance Supervision Agency of Montenegro, and the contracting authority is the European Union Delegation to Montenegro.

The project started in November 2013, and over the eight months of implementation, IFG committed to the following activities:

• Assess Montenegro’s insurance legislation, existing supervisory practices, and disclosure requirements.

• Train the beneficiary’s staff (including practical support) in:

  • General objectives and principles of financial analysis.

  • Financial analysis in insurance.

• Prepare a manual and guidelines for financial analysis of insurers, including onsite inspections and offsite supervision.

• Train the beneficiary’s staff (including practical support) in:

  • Corporate governance principles.

  • Internal control system of insurers—governance environment (written strategies, policies, procedures), communication, control.

  • Key functions—risk management, actuarial and internal audit, compliance audit.

• Provide guidance on applying the main principles of corporate governance and requirements related to key functions within the system.

• Train the beneficiary’s staff (including practical support) in:

  • Introduction to insurer risk management.

  • Core aspects of risk-based supervision:

    • Risk categories and exposure—quantitative and qualitative measurement.

    • Risk profile and risk appetite.

• Prepare a manual and guidelines for risk-based supervision of insurers in accordance with the Solvency II project.

• Develop a strategy to further build the capacity of the Insurance Supervision Agency of Montenegro to align its operations with best EU practices and the guidelines and recommendations of EIOPA (European Insurance and Occupational Pensions Authority).