Insurance cos ready to give funds for big infrastructure projects

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FE Report
Insurance companies are ready to provide funds for big infrastructure projects, like Padma Bridge, if the government asks for the funding, said Bangladesh Insurance Association (BIA) chairman AKM Rafiqul Islam Tuesday.
"The government needs money for the construction of Padma Bridge and we have funds to provide," he said.
The government needs to draw an 'investment scheme' to channelise the funds from the insurance sector, Mr Rafiq said at a seminar on micro insurance jointly organised by BIA and Bangladesh Insurance Academy in the city.
Insurance companies cover only 4 per cent of the population and with proper support from the government it can be increased manifolds, he said.
From the micro insurance, the companies earned Tk 7.67 billion as premium in 2007 and Tk 9.18 billion in 2008, he added.
The BIA chairman requested Dr Mashiur Rahman, the economic adviser to the prime minister, present at the seminar as chief guest, to help table the insurance ordinance in parliament soon to get legal coverage.
Dr Rahman in reply said the ordinance would be tabled in the next session of the parliament.
About the infrastructure funding, he said the government has opted for private-public partnership in the infrastructure sector and any initiative from the insurance companies was welcome.
"As an adviser I will try to pursue the government to borrow from the companies to finance big infrastructure projects," he said.
The sector needs actuary to calculate risks and expansion of business, the adviser said.
"Rule of thumb does not work properly all the time," he cautioned.
Affordability, problem of contract and high cost of management are the main constraints of demand for and supply of micro insurance, he pointed out.
The adviser said Shafat Ahmed Chaudhuri, founder chairman of Green Delta Insurance, introduced micro insurance in the private sector.
He urged the companies to invest more in rural areas.
Managing director of Pragati Life Insurance Zafar Halim and managing director of Global Insurance ABM Nurul Haq presented two papers in working sessions.
A large number of insurance industry people, academics and government officials attended the seminar.