Insurance regulator seeks manpower from Muhith
Wednesday, 27 April 2011
Asaduzzaman Pallab
Faced with a severe shortage of manpower and fund, the newly created insurance regulator has sought the finance minister's intervention to make the authority functional. The chairman and four members of the Insurance Development Regulatory Authority will meet AMA Muhith today (Wednesday) in an effort to draw his attention to the crisis, officials said Tuesday. The new regulator was created through a government order in January this year, but the office has yet to see appointment of any new officials and fund to manage its day-to-day operation. "We hope things will change for the better after we meet the finance minister today (Wednesday)," an official of the IDRA told the FE. Officials said the IDRA has sought 170 officials to man its regulatory jobs, a one-time fund of Tk20 million and an office space of 20,000 square feet to function properly. "But immediately we need at least 10 officials with deputation from other government offices. Otherwise, it will be impossible to operate the IDRA," the official said. Presently, the authority has only one official and several low-level employees inherited from the now defunct office of the Chief Controller of Insurance. "The government has formed the authority more than three months ago. But due to the manpower crisis, we mostly sat idle all this time. We have been operating like a lame-duck authority," he said. The IDRA is the regulator for the country's second largest financial sector, comprising 44 general insurance and 18 life insurance companies. Due to the manpower crisis, the authority is struggling to formulate basic rules and regulations for the sector, whose annul premiums last year crossed more than one billion dollars. Another official said the authority urgently needs officers to prepare a Bengali version of the insurance laws, rules and regulations. The existing insurance laws and rules are all drafted in English. Bangladesh Insurance Association backed the demand for immediate appointment of officials at the authority, saying the regulator faces a huge task to oversee the poorly regulated sector. When contacted, chairman of IDRA Actuary Shefaque Ahmed said an organogram outlining the jobs and responsibilities of its officials awaits approval of the finance ministry. "We need the approval as soon as possible. Otherwise, the IDRA cannot operate efficiently and also won't be able to recruit manpower through publishing advertisement in the newspaper," he said.
Faced with a severe shortage of manpower and fund, the newly created insurance regulator has sought the finance minister's intervention to make the authority functional. The chairman and four members of the Insurance Development Regulatory Authority will meet AMA Muhith today (Wednesday) in an effort to draw his attention to the crisis, officials said Tuesday. The new regulator was created through a government order in January this year, but the office has yet to see appointment of any new officials and fund to manage its day-to-day operation. "We hope things will change for the better after we meet the finance minister today (Wednesday)," an official of the IDRA told the FE. Officials said the IDRA has sought 170 officials to man its regulatory jobs, a one-time fund of Tk20 million and an office space of 20,000 square feet to function properly. "But immediately we need at least 10 officials with deputation from other government offices. Otherwise, it will be impossible to operate the IDRA," the official said. Presently, the authority has only one official and several low-level employees inherited from the now defunct office of the Chief Controller of Insurance. "The government has formed the authority more than three months ago. But due to the manpower crisis, we mostly sat idle all this time. We have been operating like a lame-duck authority," he said. The IDRA is the regulator for the country's second largest financial sector, comprising 44 general insurance and 18 life insurance companies. Due to the manpower crisis, the authority is struggling to formulate basic rules and regulations for the sector, whose annul premiums last year crossed more than one billion dollars. Another official said the authority urgently needs officers to prepare a Bengali version of the insurance laws, rules and regulations. The existing insurance laws and rules are all drafted in English. Bangladesh Insurance Association backed the demand for immediate appointment of officials at the authority, saying the regulator faces a huge task to oversee the poorly regulated sector. When contacted, chairman of IDRA Actuary Shefaque Ahmed said an organogram outlining the jobs and responsibilities of its officials awaits approval of the finance ministry. "We need the approval as soon as possible. Otherwise, the IDRA cannot operate efficiently and also won't be able to recruit manpower through publishing advertisement in the newspaper," he said.