Insurance products should be diversified

Bangladesh Insurance Association (BIA) President Sheikh Kabir Hossain has said that the observance of National Insurance Day each year is playing a vital role in raising awareness of people even in the rural areas.
"This is National Insurance Day and its observance each year has its impacts on the people," Mr. Kabir Hossain said in an exclusive interview with The Financial Express (FE) on the eve of National Insurance Day 2024 to be observed today (March 1).
On product diversification, the BIA chief said the products should be diversified and even the homes should be brought under the insurance umbrella.
He said many houses were being damaged by fires every year but they were uninsured. If the houses were insured, they could claim insurance money to repair or rebuild them.
He, however, said the insurance regulator introduced the much-talked about 'bancassurance' adding: "The partnership model between banks and insurers may help diversify the products".
"I think bancassurance will help change the industry as many bank clients will purchase the products."
Mr. Hossain, also chairman of a leading non-life insurer, Sonar Bangla Insurance Company Limited, was critical of the non-settlement of claims by some life insurers.
He said such non-settlement of claims was damaging the insurance industry.
He said the insurance regulator - Insurance Development and Regulatory Authority (IDRA)-should be strengthened. The regulator could 0not monitor the industry properly for a lack of required manpower, he added.
He said many officers were being recruited on deputation and after some learning while working with the IDRA they were again being transferred elsewhere.
"IDRA should be strengthened and have their own people to monitor the industry," he suggested.
He said the regulator, of late, had suspended operations of one insurer. "This is not a solution. Rather, the reason should be ascertained-they should look into why companies are being weakened".
Mr. Hossain, however, said Prime Minister Sheikh Hasina was born in an insurance family, so the existing irregularities in the industry would go away gradually.
He recalled that the Father of the Nation was a member of the insurance industry and worked with the Alpha Insurance Company. Bangabandhu organised the people of Bangladesh through the insurance sector.
Bangabandhu Sheikh Mujibur Rahman joined as the head of business promotion at Alpha Insurance Company in Dhaka. He used to sit at its Bangabandhu Avenue office in the city. He joined Alpha Insurance on March 01, 1960. The day is being observed as the Insurance Day to mark that occasion.
Mr. Hossain, along with other members of his association -- BIA - played a key role in observing the National Insurance Day in recognition of Bangabandhu Sheikh Mujibur Rahman's contribution to the industry.

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