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Public trust in insurance sector a must

06 Feb 2023 00:00:00 | Update: 06 Feb 2023 00:23:44
Public trust in insurance sector a must

The insurance companies have to secure people’s trust to bring the public under insurance coverage. Gaining the people’s confidence through proper implementation of the Insurance Act will ultimately increase the sector’s contribution to the GDP, said Managing Director and CEO of Popular Life Insurance Company Limited BM Yousuf Ali in an exclusive interview with The Business Post’s Shahin Howlader.

What special services your company delivers?

Popular Life Insurance Company is one of the largest life insurance companies in the country offering services across every upazila and district of the country. We have reached the doors of mass people to offer insurance services.

The company has gained peoples’ trust by providing prompt service to customers, participating in different social activities, patronising sports on a national level, and taking part in various anti-drug campaigns. To achieve this popularity, workers of our company have worked tirelessly investing their labour, talent and time. Popularity and acceptance of Popular Life Insurance are noticeable both in the urban and rural areas, from the cities to remote villages across the country.

In a word, providing prompt customer services as well as participating in different social and humanitarian activities at the national level is our speciality.

Which is the most popular scheme of your company?

All schemes of our company are quite popular. However, saving insurance, short-term insurance, child protection insurance and dowry claim insurance (mohorana bima) are widely popular.

People have a negative conception about the insurance companies regarding payment of insurance claims. As an insurer, what is your opinion on this?

Like other sectors, the insurance sector also experienced turmoil after the assassination of Bangabandhu Sheikh Mujibur Rahman on August 15 in 1975.

The government formed the Insurance Development and Regulatory Authority (IDRA) to bring back discipline in this sector. The IDRA has taken different steps to eliminate all negative conceptions, including payment of insurance claims, about the insurance sector. Now, everyone is already getting the benefits and experiencing the positive outcome of the IDRA’s initiatives.

What measures should be taken to bring common people under insurance coverage like foreign countries?

Firstly, companies have to secure people’s trust to bring the mass people under insurance coverage. Bangladesh Insurance Association and Bangladesh Insurance Forum are jointly working with IDRA in this regard. It will take some time but we are confident that we will be able to reach the goal.

What steps should be taken to increase the contribution of the insurance sector to the GDP?

The contribution of the insurance sector to the GDP will increase gradually once the insurers succeed in gaining the trust of the general people. Proper implementation of the Insurance Act is the key factor in reaching the goal.

What is your advice for using information technology in insurance companies?

It’s hardly possible to sustain any business denying the demand of time. Every company should be digitalised if they want to sustain and attract more people. Proper use of information technology will bring us in line with the international trend, and digitisation will enable us to provide faster customer service and gain the trust of the masses.

What challenges have you faced while operating business amid the Coronavirus pandemic?

Everyone from the individual to the institution has been affected by the economic downturn during the global pandemic, and we were no exception. We took appropriate steps to maintain the morale of our employees and tried our best to provide maximum customer service across the country. Even if the growth of business stalled, we tried to retain as much as possible. Due to the pandemic, people were confined to their homes. All activities were closed; the world economy was in recession. As a result, we had to move through adverse conditions.

Like in the banking sector, MDs of the insurance sector also cannot work independently. In most cases, insurance executives are accountable to the board of directors. What is your opinion as an insurance executive?

One cannot work normally in a fearful situation. Surviving successfully becomes the key factor then and during such a time, quality can’t be expected. Currently, CEOs are forced to implement the illegal agenda of a vested group or particular person under pressure for their survival. You witnessed the incidents of a large insurance company. In order to advance the insurance sector through proper implementation of the Insurance Act, I request the intervention of the regulatory authority in this regard.

What will be your advice for the IDRA?

The government formed the IDRA for the development of the insurance industry. Necessary regulations have been issued to advance the sector. Currently, many talented people including the IDRA chairman are in charge. I believe the way they are working will lead this sector in the right direction. However, manpower needs to be increased to enhance surveillance and regulations needed to be fully implemented on an urgent basis, though these things are time-consuming.

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