BASIS to IDRA: Boost insurtech activities

Bangladesh Association of Software and Information Services (BASIS) has urged the Insurance Development and Regulatory Authority (IDRA) to accelerate Insurtech activities in Bangladesh.

The apex trade body made the call while discussing various issues related to the advancement of insurtech and the creation of a regulatory framework at a meeting held at the IDRA office in Dhaka on Wednesday.

Insurtech — a combination of the words insurance and technology — refers to technological innovations that are created and implemented to improve the insurance industry’s efficiency. It powers the creation, distribution and administration of the insurance business.

The BASIS Standing Committee on FinTech and Digital Payments presented a draft guideline for insurtech companies and proposed to finalise the draft guideline within 60 days.

IDRA Chairman Mohammad Jainul Bari said that the management of the country’s insurance companies is outdated. The use of information technology in the insurance sector should be ensured to modernise insurance companies, improve service quality and increase public awareness about insurance.

He also called for finalising the draft guideline in 60 days considering the role and potential of insurtech companies in building a Smart Bangladesh.

BASIS President Russell T Ahmed highlighted the importance of insurtech companies for the sector’s progress and called for the need to create a regulatory framework for such companies to conduct business smoothly.

He stressed that to ensure the maximum use of potential sectors like insurtech in building a Smart Bangladesh, a regulatory framework for insurance companies as well as insurtech companies is needed through which these insurtech companies can work specifically.

AKM Fahim Mashroor, chairman of the BASIS Standing Committee on FinTech and Digital Payments and CEO of bdjobs, said the regulatory framework must be industry-friendly so that they can act as partners with insurance companies rather than technology providers. In this case, insurance companies must ensure the use of technology.

Fida Haq, co-chairman of the committee, said Bangladesh is an emerging economy and as insurtech is a promising sector, many foreign investors are interested in investing in it.

Many insurtech companies in Bangladesh are operating illegally or quasi-legally due to the lack of a specific regulatory framework. As a result, foreign investors feel discouraged to invest in these companies, he said.

Therefore, a proper framework for insurtech companies is essential for them to get this foreign investment and run the business smoothly, he added.

Alvi Nizam Nafi, chief executive officer of Bimafy, Instasure Managing Director Rafael Kabir, GBL Fintech Managing Director Mohammad Saifur Rahman and Shaon Shahriar, managing director of Chaya.xyz, were also present at the meeting, among others.