‘Will work with all parties to advance insurance sector’

If the insurance industry is developed, it can help the country generate more revenue, and serve as a source of funding for the government’s various development initiatives. The initiatives of the Insurance Development and Regulatory Authority (IDRA) for the insurance industry’s growth are truly commendable. However, due to the lack of implementation of these initiatives, the insurance sector’s contribution to GDP has not increased. “My first priority will be to rebuild public confidence in the insurance industry.” Joynal Bari, the newly appointed chairman of the IDRA told The Business Post’s Shahin Howlader and Sakhawat Sumon in an exclusive interview

Why does the insurance industry contribute so little to the national GDP?

In other nations around the world, the insurance industry makes a significant contribution to their national GDP. For instance, India, a neighbouring country, receives about 4 per cent of its GDP from the insurance sector.

People’s lack of confidence in the insurance industry is one of the factors contributing to the low contribution of the insurance sector in our nation.

Why don’t more people sign up for insurance plans?

Although it is the responsibility of a financial institution to lend money, why would people seek insurance if there is a lack of trust in such institutions?

Why is there no budgetary support for the growth of the insurance industry?

The contribution of our insurance sector to the national GDP is still below 1 per cent, although the target is 4 per cent.

Every year, stakeholders request funding in the budget, but because the insurance industry does not make a sizable economic contribution to the nation, this request is not given much weight.

I will work to ensure that the insurance sector gets more importance in the upcoming budgets.

What are you doing about the shortage of manpower at the IDRA?

Previously, the IDRA had a labour shortage. But, since then, it has made some improvements on that front. The officials here now have permanent positions.

Currently, two member posts and five director posts are vacant in the IDRA, regarding which we have already informed the finance ministry. I hope these vacant posts will be filled soon.

Do you intend to take any initiatives so that relevant information may be obtained from insurance companies in the public interest?

Insurance companies are inclined to hide confidential information in the interest of the business.

However, we also have to look at the public interest. As the regulatory body, we can assure you that we will not hesitate to provide any type of information that is in the public interest.

Why aren’t health insurance policies as common here as they are in other countries?

Although health insurance policies are very popular in the rest of the world, they are not given much importance in our country. In addition, there are a number of other significant insurance programs available here, such as crop insurance and education insurance, that do not have widespread participation.