IDRA mulls comprehensive framework for presenting life insurers\\\' accounts

Insurance regulator has taken a move to formulate a comprehensive framework for presenting life insurers' accounts which, it believes, will help them ensure transparency in financial statements made by life insurance firms.
The move came as many life insurance companies don't comply with the rules and regulations stipulated in Insurance Act-2010.
Apart from this, they (life insurers) prepare their annual reports which, in many cases, don't reflect the true picture of the companies' financial health.
Insurance Development and Regulatory Authority (IDRA), the regulator, organised a workshop on the issue Monday at its headquarters in the city.
IDRA chairman M Shefaque Ahmed, its members and CEOs and chief financial officers of all the 31 life insurance companies attended the workshop.
Institute of Chartered Accountants of Bangladesh (ICAB) was the partner of the workshop.
ICAB president Masih Malik Chowdhury and its senior chartered accountant also joined the programme.
Mosharrof Hossain, a senior chartered accountant of Prime Securities, presented a paper on the affairs of regulatory framework. Mohammed Redwanur Rahman, chief account of the MetLife Alico, also presented paper on the accounts in the annual reports.
Speaking at the function, Mr Shefaque said policyholders are the main stakeholders in the insurance firms. "It is of paramount importance for the regulatory authority to develop and regulate the market in a prudent way so that interests of policyholders are well protected."
He said the rules and regulations stipulated in Insurance Act-2010 have empowered the regulatory body to take appropriate measures to develop a vibrant life insurance market in the country.
"Transparency in financial statements (balance sheet and revenue accounts), the disclosures and the management reports accompanying these statements provide useful information to the regulator to carry out its obligations," the IDRA chief said.
"We've recently collected a set of financial statements from many life insurance companies and audited those, but those statements lack clarity and consistency," Mr Shefaque said.
The IDRA later met with senior officials of the life companies to clarify the related figures, he added. "We get really frustrated over such type of poor accounting practices in life companies."
For the first time in the country, a regulator has taken such a move to prepare accounts in line with the rules and regulations stipulated in the act, IDRA sources said.
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