4 hours Ago
In order to reform the insurance sector, it is important to strengthen the Insurance Development and Regulatory Authority (Idra), according to Idra Chairman M Aslam Alam. He made this comment while speaking as the chief guest during a seminar styled "Insurance sector reform and our responsibilities," organised by the Insurance Reporters' Forum at the Idra office yesterday. Alam said that while Bangladesh Bank has more than 7,000 officials, Idra's total manpower is still below 200, making it difficult to effectively monitor insurance companies in the country.
Describing the Insurance Act as "flawed," Alam said it weakens Idra in favour of insurers. For instance, when Idra suspends someone, they can go to court and obtain a stay order, thereby allowing them to quickly return to their job. "So, Idra needs significant empowerment," he added.
The Idra chairman mentioned that good decision-making requires accurate information, but local insurance companies are reluctant to provide proper data. Even when they do, there is uncertainty about whether the data has been fabricated or manipulated. He emphasised that digitisation could eliminate 85 percent of irregularities and corruption.
"We take initiatives, but we do not receive cooperation," he added. Alam also highlighted the importance of the Insurance Management System (IMS), which currently offers ten services. He stressed that proper data entry into IMS is crucial for monitoring insurance companies effectively.
However, insurance companies are not cooperating in this regard. He further stated that besides digitisation, having an adequate workforce would also make a difference. However, Idra has to operate with limited manpower and technology.
Nevertheless, efforts are underway to improve the insurance sector, though it will take time and cannot be achieved overnight. Regarding pending insurance claims, he mentioned that Idra does not have the authority to sell significant shareholders' assets to settle claims and must therefore rely on the courts. Several cases in this regard are currently ongoing.
He further stressed that if unresolved insurance claims are not settled, public trust in insurance will not increase. "Ensuring good governance is key to building trust," he added. Presided over by IRF President Gazi Anwar, the event featured the presentation of two research papers.
The paper on the life insurance sector was presented by Md Jalalul Azim, managing director and CEO of Pragati Life Insurance, while the paper on the non-life insurance sector was presented by Shafique Shamim, managing director and CEO of Sena Kalyan Insurance. The seminar was attended by Idra members, chief executive officers of life and non-life insurance companies, and journalists covering the insurance sector. In order to reform the insurance sector, it is important to strengthen the Insurance Development and Regulatory Authority (Idra), according to Idra Chairman M Aslam Alam.
He made this comment while speaking as the chief guest during a seminar styled "Insurance sector reform and our responsibilities," organised by the Insurance Reporters' Forum at the Idra office yesterday. Alam said that while Bangladesh Bank has more than 7,000 officials, Idra's total manpower is still below 200, making it difficult to effectively monitor insurance companies in the country. Describing the Insurance Act as "flawed," Alam said it weakens Idra in favour of insurers.
For instance, when Idra suspends someone, they can go to court and obtain a stay order, thereby allowing them to quickly return to their job. "So, Idra needs significant empowerment," he added. The Idra chairman mentioned that good decision-making requires accurate information, but local insurance companies are reluctant to provide proper data.
Even when they do, there is uncertainty about whether the data has been fabricated or manipulated. He emphasised that digitisation could eliminate 85 percent of irregularities and corruption. "We take initiatives, but we do not receive cooperation," he added.
Alam also highlighted the importance of the Insurance Management System (IMS), which currently offers ten services. He stressed that proper data entry into IMS is crucial for monitoring insurance companies effectively. However, insurance companies are not cooperating in this regard.
He further stated that besides digitisation, having an adequate workforce would also make a difference. However, Idra has to operate with limited manpower and technology. Nevertheless, efforts are underway to improve the insurance sector, though it will take time and cannot be achieved overnight.
Regarding pending insurance claims, he mentioned that Idra does not have the authority to sell significant shareholders' assets to settle claims and must therefore rely on the courts. Several cases in this regard are currently ongoing. He further stressed that if unresolved insurance claims are not settled, public trust in insurance will not increase.
"Ensuring good governance is key to building trust," he added. Presided over by IRF President Gazi Anwar, the event featured the presentation of two research papers. The paper on the life insurance sector was presented by Md Jalalul Azim, managing director and CEO of Pragati Life Insurance, while the paper on the non-life insurance sector was presented by Shafique Shamim, managing director and CEO of Sena Kalyan Insurance.
The seminar was attended by Idra members, chief executive officers of life and non-life insurance companies, and journalists covering the insurance sector..
