Home ›› 13 Jul 2022 ›› Corporate
Sonali Life Insurance Company, a fourth-generation company, has been able to set a ground-breaking precedent in the life insurance sector by being the first to become a fully IT-based insurance provider in the country and by setting a trend of settling insurance claims in just seven days. Now it wants to become the market leader in the life insurance sector by providing genuine customer service. “Our clients have a history of receiving insurance claims on time. We have settled the claims of more than 18,000 clients in the nine years since the founding of our company. When it comes to the settlement of insurance claims, we have a 100% success rate. There isn’t a company that I am aware of that has done this before,” Mir Rashed Bin Aman, chief executive officer (CEO), Sonali Life Insurance Company Ltd told The Business Post’s Shahin Howlader in an exclusive interview.
What is special about your organisation?
The company offers a variety of specialized services, which is why our clients have chosen us. The lack of public trust is the main issue facing the insurance industry right now. So, we have done everything in our power since the company was first founded to highlight the good and minimize the bad aspects of the insurance industry.
We are the industry’s first IT-based insurance company. Our entire operation is powered by ERP (Enterprise Resource Planning) solutions, not just the Core Banking Solution (CBS).
Customers have not received genuine service in the insurance industry for a very long time. Since each policy is long-term, it is crucial to establish clients’ trust. To achieve this, we were the first to use technology to give the clients full control over their own policies.
Through our app, you can see everything about your policy and avail the desired services. We launched the app in 2015 when no one had the app.
The important thing is that our clients have faith in the commitment and service of Sonali Life Insurance.
Many clients have a negative experience with insurance companies when it comes to receiving claims. As an insurer, what is your take on this issue?
No matter how bad a reputation other companies in the insurance industry have, nobody can point to a case of a potential client visiting our company and being harassed.
The systems used by our company make it clear that there is no possibility of fraud. That’s why the company saw a growth of 137 per cent last year.
Besides, the company also has a renewal rate of 89 per cent, while I doubt that any other company in the sector has even 49 per cent. All of these factors contribute to the clients’ independent decision to open policies with the company.
As a result, I believe that if we gain confidence, the insurance industry can advance quickly.
Which are some of your more popular schemes?
Each of the 28 insurance policy schemes offered by our company caters to our diverse client base.
The most popular products, like the 5 payment plan and the 3 payment plan, have partial maturity provisions.
Some of the other popular products are the provident fund schemes, pension schemes, denmohar insurance, hajj insurance, and education insurance schemes.
What steps should be taken to enrol more people in insurance like in developed countries?
The insurance industry in our nation is seen to be in a fragile state when compared to those of other nations. Insurance companies are compared to MLM companies.
It will be possible to enrol more people in insurance if we can dispel the public’s misperceptions about the insurance industry by instilling confidence in them. The insurance sector’s contribution to GDP will then rise.
People fear that insurance companies will go bankrupt due to their errors. However, no insurance company has ever declared bankruptcy in the history of this sector.
What other steps do you think should be taken to increase the contribution of the insurance sector to the country’s GDP?
The main problem in the insurance sector is that customers are not getting genuine service. Insurance companies must settle claims on time. It is necessary to improve the insurance industry’s transparency and accountability.
In 2014, the government created a national insurance policy that identifies a number of issues with the industry. I believe that the insurance sector’s contribution to GDP will rise if the government’s national insurance plan is properly implemented.
What advice do you have for insurance companies about going digital?
I have no idea why insurance firms are not going digital. They may not have the logistical support they need. The cost of going fully digital at once is also high, and there is a shortage of skilled labour.
My recommendation is that every company adopt digital infrastructure in the current era of technology in order to offer clients sincere service.
What problems did you face while operating in Covid period?
The year 2020 was a new experience for everyone. Even during the Covid period, we worked non-stop to continue customer service, especially for the settlement of insurance claims. We also paid employees’ salaries on time without layoffs or pay cuts.
However, in the Covid period, our spending continued but business declined by about 70 per cent.
What is your advice to the regulatory authority?
The Insurance Development and Regulatory Authority, or IRDA, is responsible for putting all the measures taken to develop the insurance industry into action.
Penalising companies that refuse to pay insurance claims is one area in which the IDRA can improve.
Another problem is the lack of manpower in IDRA. IDRA should have 100 per cent manpower, and it also requires development.
Although the finance ministry is taking an initiative in this regard, I believe, like the central bank, IDRA should have its own manpower structure as it is dealing with a large sector.
This will help IDRA officials formulate a long-term plan in this sector and implement it.
