Monday, April 29, 2024
SM Ziaul Hoque, FLMI, is a dynamic career professional with a superb track record in Bangladesh’s Insurance sector. He has been awarded “South Asian Business Excellence Awards 2022” from SAPS for his Outstanding Leadership Contribution in the Insurance Sector of South Asia.Ziaul is holding the position of CEO at Chartered Life Insurance Company after joining the organisation as additional managing director in 2019. On the occasion of National Insurance Day, he discussed various aspects of the sector with The Business Post’s Talukder Farhad.
TBP: Insurance Day has been observed on March 1 every year since 2020, how is your observation about the day as a top executive in the sector?
Ziaul: We feel very honored when Insurance Day arrives. Actually there is no such particular day for any other sector. It is a day of joy for us. We want to celebrate it holistically. This year's National Insurance Day’s theme is, “Get Insured, Build Nation, and Turn Bangladesh Smart.”
Another breakthrough for this year is the launching of bancassurance. The new initiative will bring revolutionary change in the industry. It will be highlighted in this year’s insurance day.
TPB: How has the insurance business progressed, especially the changes in the business over the last decade?
Ziaul: The Insurance Development Regulatory Authority (IDRA) started its journey in 2011. The regulatory body was not that vibrant at the beginning.
But since 2020, the regulator has taken various fundamental steps such as ensuring good governance, making the claim settlement process quicker, emphasising on digitalisation, accountability, and reducing the time it takes to resolve complaints.
Such initiatives are making people more interested in insurance policies.
Meanwhile a sandbox policy is in place to enable digitisation of product innovation in the sector. IDRA's activities have become more extensive especially after the Covid-19 pandemic.
TBP: How type of changes has come in the insurance companies?
Ziaul: Every company is now being digitally connected, as there is no story of insurance money lost, which was heard previously.
Customers have taken control through the use of technology, such as receiving notices regarding when and where the premium has been deposited, maturity or survival benefits. Digitalisation is also helping to speed up claim settlements.
For example, ten companies have settled their customers’ claims above 98 per cent. Chartered Life is a 100 per cent claim-settled company. This change has ensured better customer-oriented services.
The success of the companies became because of digitally sound and new product innovation.
TBP: What kind of changes do you want to see among customers?
Ziaul: People have a wrong idea that insurance means extra profits similar to banks or other financial deposits, but it is not the right thinking.
Insurance means security and savings for the future. Insurance companies are providing security to customers’ wealth, life, health, and family, as well as helping them to have savings and arrange various types of tax rebates.
A positive change is coming. However we need to increase awareness of our potential and existing customers. We need more publicity, such as an insurance fair, insurance day, different types of articles, and talk shows, which can be organised by the media.
TBP: What are the existing challenges in the insurance sector?
Ziaul: Fundamentally I see three challenges. First is the delay of claim settlement. The reason for this is that earlier the investment arena of insurance companies was not determined.
Sometimes we see many companies invest in fixed assets like land. Whenever the time comes to settle claims, the land is not able to be sold. As a result, due to the liquidity crisis, settlement of claims is being delayed. It has created a negative impact.
The second challenge is lack of skill manpower. This is because there are many companies against the demand and the sector’s job is part-time or commission based.
But the county's job seekers want full time jobs. So we cannot attract skilled manpower. The third challenge is lack of awareness in customers which I earlier mentioned.
We need to solve such challenges and another challenge is actuary crisis. Because of the crisis we cannot bring new products even if we want to. Government should take initiatives to increase the number of actuaries.
TBP: Does the universal passion scheme create challenges for insurance companies?
Ziaul: Pension schemes are linked to insurance companies abroad. But in our country, the government has taken over that responsibility. We, the industry community, demand that the government collaborate with insurance companies under public private partnerships (PPP).
If the private insurance firms get this opportunity, we can do a lot of publicity campaigns, and it will help to collect more funds.
TBP: What are Chartered Life’s plans ahead?
Ziaul: I have been leading a fourth generation life insurance company for the last five years. It was ranked 28th in 2019. Currently it is ranked 12th, and our aim is to be in the top ten by 2025, and in the top five in 2030. Our business is growing in line with the plan.
