Published on 24th of May 2020 at 1700hrs:
There are more than one reason which are responsible for the current sorry state of affairs in the insurance sector.
One of the important factors perhaps is improper management by the Insurance Development and Regulatory Authority (IDRA).
IDRA was formed in 2010 with the aim to regulate and monitor insurance activities in the insurance market.
But regrettably it has not been able to perform its duties due to various reasons namely lack of skilled insurance workforce, indifference towards development of this sector, bad governance etc.
Despite the fact that insurance laws and rules and regulations are clearly laid down, IDRA for reasons best known to them is apparently unable to strictly enforce or implement them, take stern action against insurance companies responsible for breach or violation of insurance laws and regulations.
There appears to be too many irregularities presently exist in the insurance sector.
If there are loopholes in the existing system, the logical solution is to enact new laws and frame new rules and regulations to plug the loopholes.
Insurance authorities should do everything in their power vested in them by insurance law to bring necessary discipline in the insurance sector.
They cannot avoid their responsibilities and turn a blind eye to what is happening around them. They should not forget that they are after all accountable to all stake holders in the insurance sector.
Enough time has bee wasted. The current unhealthy situation cannot be allowed to continue for ever.
Something must be done by the insurance authority sooner than later in order to bring sanity and improvement in the insurance sector.
I have great expectations of IDRA Bangladesh, which will lead the sector to its apex.
To be continued
Mr. Haque was brought up and educated in Dhaka. He obtained his master’s degree with honours in Biochemistry from University of Dhaka (DU). He spent nearly four decades in Dubai (UAE) working for several multinational insurance companies in various capacities. He obtained his Fellowship (FCII) from The Chartered Insurance Institute (CII), London, Associateship (AIRM) from The Institute of Risk Management (IRM), London, Associateship (ACIArb) from The Chartered Institute of Arbitrators (CIArb), London. He has authored several books on insurance which have been acclaimed both at home and abroad. He contributes regularly on insurance matters in various online insurance news portals and is a founder General Secretary of Bangladesh Insurance Professionals Society (BIPS).