Strengthening insurance sector
Tuesday, 12 February 2008
RECENT newspaper reports indicate that the life insurance sector's business grew significantly compared to that of general insurance. Does this trend show the impact of a lull in the country's business activities?
The general insurance companies need to be more proactive to be able to take the initiative to increase awareness for more and more risk coverage by businesses. Both the clients and the insurances companies could benefit from such a move. The relatively weaker performance of the general insurance companies, in that case, would result in better performance on their part.
In this connection, it is important to note that the regulatory and supervisory authority in the insurance sector should lie with a well-competent body. This will help encourage the healthy growth of the industry in a competitive and transparent way. For that matter, the ultimate controlling authority here should be exercised by the Ministry of Finance for facilitating the operationalisation of well-coherent public policies with regard to the overall financial sector in the economy. Hence, the latest move by the government to make the ministry of finance, in place of existing ministry of commerce, the line ministry for discharging the overall regulatory and supervisory role of the insurance sector through a well-organised regulatory authority is welcome. It should be approved at the earliest by the cabinet and also be operationalised soon without any waste of time. The sooner, the better.
Imran Ahmed
Dhanmondi, Dhaka
The general insurance companies need to be more proactive to be able to take the initiative to increase awareness for more and more risk coverage by businesses. Both the clients and the insurances companies could benefit from such a move. The relatively weaker performance of the general insurance companies, in that case, would result in better performance on their part.
In this connection, it is important to note that the regulatory and supervisory authority in the insurance sector should lie with a well-competent body. This will help encourage the healthy growth of the industry in a competitive and transparent way. For that matter, the ultimate controlling authority here should be exercised by the Ministry of Finance for facilitating the operationalisation of well-coherent public policies with regard to the overall financial sector in the economy. Hence, the latest move by the government to make the ministry of finance, in place of existing ministry of commerce, the line ministry for discharging the overall regulatory and supervisory role of the insurance sector through a well-organised regulatory authority is welcome. It should be approved at the earliest by the cabinet and also be operationalised soon without any waste of time. The sooner, the better.
Imran Ahmed
Dhanmondi, Dhaka