Despite having enormous economic potential, the country's insurance business remains one of the most neglected sector due to lack of government priority, speakers told at a seminar in the city Thursday.
They also urged the government to streamline the Insurance Development & Regulatory Authority (IDRA) to remove the problems in the sector.
"There is no government priority and interest for the development of the insurance sector though it is one of the key sectors in many countries," President of the International Chamber of Commerce, Bangladesh (ICC,B) Mahbubur Rahman said at the seminar on "Role of Insurance Industry for Economic Development" at the auditorium of Bangladesh Insurance Association (BIA) in the city.
"Though the government has formed an authority for the development of insurance industry, it is yet to be fully empowered," Mahbubur Rahman said adding that members of the IDRA do not get salary regularly.
"How the sector would be developed," he questioned.
President of BIA Sheikh Kabir Hossain said the country's insurance industry could be transformed into one of the key economic sectors if it gets proper patronage.
"The global scenario shows that all the developed economies have strong insurance sector. So, Bangladesh should also follow the developed world," he said.
Referring to the government step for formation of IDRA, Mr Hossaid said the sector still remains neglected even after its creation.
He also urged the government to withdraw the 5.0 per cent tax on premium and income of the insurance company.
State Minister for Finance and Planning MA Mannan said the insurance sector is neglected but it's not intentional.
"It could be due to lack of focus and knowledge," he said. The state minister said his government is ready to fully supervise the sector.
About the World Bank comment on proposed national budget, Mr Mannan said as the global lender hailed the budget, now all will praise it.
"If Muhith, Mannan say anything good all will say no, no, but if the foreigners say everyone will say yes, yes," he said.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Kazi Akram Uddin Ahmed stressed on spread of insurance coverage among people.
"The country's insurance sector has only 0.5 per cent share in GDP (gross domestic product). However, India has about 4 per cent share," he said.
Professor Shibli Rubayat Ul Islam, Dean, Faculty of Business Studies, University of Dhaka, said in his keynote speech that there are 18 life insurance companies and 44 general insurance companies' which are sufficient for a developing country like Bangladesh.
"Even though, the contribution of insurance companies to economy is not satisfactory just because we have not been able to make people understand its importance and we have a very little coverage of total market," he said.
Mr Islam said Bangladesh is termed an agricultural country but insurance companies lack proper focus on this prime contributor of GDP.
"There is ample scope of insurance through various types of products such as crop insurance, cattle insurance, micro-insurance etc," he said.
IDRA member Kuddus Khan, BIA vice president Ahsanul Islam Titu, among others, were present at the seminar.
Insurance sector remains \\\'most neglected\\\' in BD
FE Report | Published: June 27, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
Share if you like