New tariffs for non-life insurers in a month

The insurance regulator will announce new tariffs for non-life insurance firms in a month replacing the old ones.
The Insurance Development and Regulatory Authority (IDRA) took the decision following the demand from the non-life insurers.
IDRA sources, however, said the new tariffs, when introduced, will affect the country's imports and exports adversely.
The Central Rating Committee (CRC), an important organ under the IDRA, has been working on it.
The CRC has already started exchanging views with the country's 45 non-life companies on the issue.
IDRA chairman M Shefaque Ahmed told the FE that some tariff rates would be raised while some others reduced while finalised the new tariffs.
Mr. Ahmed said the CRC has been studying the issue for long. "We expect that we might announce the new tariffs in one month's time."
Sources at the IDRA said this would be a huge task as there are hundreds of rates for marine, fire and motor insurances.
"Most of the existing rates will be increased and only a few rates will be brought down," said an official at the CRC told the FE.
"We want to make rates time-befitting," he said.
AKM Iftekhar Ahmed, member secretary at the CRC, said that they have already collected five-year data relating to premium earnings, claims and its settlements from the insurance companies. "We're now examining the data collected from non-life insurers," Mr Iftekhar claimed.
He said all aspects are now being reviewed so that the new rates do not evoke any criticism from the stakeholders.
He said the best practice is that rate reviews should be done in every five years. No reviews took place in the country's insurance industry since 2000. Only some reviews taking place in 2010 applied to marine hulls.
In the absence of up-to-date rates, the authorities face difficulties in reducing rates in times of volatility in politics.
Currently, the ready-made garments are demanding 35 per cent reduction in premiums on the ground of restive political environment until December.
Imam Shaheen, additional managing director at the Phoenix Insurance said reviews are needed in view of growing costs in the industry.
"Costs of claim settlements also went up in recent times. So it is very urgent for us," Mr Shaheen added.
Bangladesh Insurance Association chief Sheikh Kabir Hossain told the FE recently that Tk. 5000-worth claim settlement now requires Tk. 8000.