Finance Minister A H M Mustafa Kamal said the licences of the country's non-listed insurance companies will be cancelled, if they fail to get listed within the next three months.
"They have to be 100 per cent compliant. There will not be two different laws for one industry."
He said these following a meeting with managing directors (MDs) and chief executive officers (CEOs) of the insurance companies at the National Economic Council (NEC) auditorium in the capital's Sher-e-Bangla Nagar on Sunday.
The Insurance Development and Regulatory Authority (IDRA) Chairman Md Shafiqur Rahman Patwari, the Financial Institution Division Senior Secretary Md Ashadul Islam, the Bangladesh Insurance Association (BIA) President Sheikh Kabir Hossain, and MDs and CEOs of the insurance companies attended the meeting.
Among the 75 insurance companies in the country, 47 are listed. According to the Insurance Act, the insurers are to get listed on the bourses within three years from the date of starting their operation.
Mr Kamal said licence cancellation of the non-compliant insurance companies will be implemented in three phases.
"Licences of the companies will be temporarily suspended for a certain period, if they can't get listed, rectify or improve their performance by the given time."
"We will go for merger and amalgamation through legal process in the second stage."
"If this process also fails, their licences will be scrapped permanently."
The government awards licences to insurance companies. It reserves the right to cancel these licences, he added.
Replying to a question, the finance minister said the three-month period will start from next month (October).
However, he expressed the hope that the insurance companies concerned will enter the stock market within the timeframe.
Mr Kamal noted that all these insurance companies had been given a deadline for entering the capital market before they were granted the licences.
"But unfortunately, those are yet to come to the capital market. The IDRA and the BIA have assured us that the non-listed insurance companies will get themselves listed on the stock market."
The finance minister said the BIA has urged the government to keep every building and flat under insurance coverage along with introducing accident insurance.
"If every citizen can be brought under insurance coverage, it will play a strong role in (boosting) the country's economy as an effective financial tool."
However, the rates of insurance premium should have to be competitive, he opined.
Mentioning that the insurance sector is a major area of the country's economy, Mr Kamal said earlier there were wrong perception, propaganda and crisis of confidence over the sector.
But, now the sector has overcome all these obstacles, and plans are there to further diversify it, he opined.
The finance minister also said the recent directive on 15 per cent agent commission rate has to be followed by all companies, which will sell insurance policies.
"If any insurance company violates the 15 per cent commission provision, its licence will also be cancelled."
The government will provide funds and offer scholarships for creating skilled manpower in the insurance sector, he concluded.
The IDRA chairman expressed the hope that the insurers will gradually introduce various types of insurance schemes to help enhance insurance coverage, while a database will be developed including the clients' details and policy-numbers.
According to the IDRA, there are 78 insurance companies in the country, of which 32 are life insurers and 46 are non-life ones.
The country's insurance sector witnessed an overall investment of Tk 369.35 billion in 2018 with a 3.20 per cent growth.
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