Insurance sector needs to overcome image crisis: Speakers

Speakers at an event on Sunday called upon insurance companies to take innovative initiatives to overcome ‘image crisis’ and practise professionalism to develop the sector.

They also urged the companies to stop unethical practices for the sake of developing the sector in near future as there is a huge potential market in Bangladesh.

The suggestions came at a seminar titled “Challenges and Opportunities of Insurance Sector in Bangladesh” organised by Bangla Daily Banijjo Protidin at Economic Reporters’ Forum (ERF) auditorium in the city.

Reading out the keynote paper, Associate Professor of Banking and Insurance Department at Dhaka University Dr Abdullah Al Mahmud said insurance began its journey in 1972 in Bangladesh but the sector didn’t flourish as per expectation.

“Now there are 78 insurance companies in the country. Of them, 49 are listed in the share market. Our position is 68th in global insurance industry and share 0.02 percent. Besides, the sector’s contribution to GDP is around 0.5% while it’s 4% in India, 1.25% in Sri Lanka, and 2.25% in Vietnam,” he said.

Dr Abdullah suggested overcoming “image crisis” by taking proper steps to boost the sector. “Bangladesh would reach 25th global economic country by 2035 and so the insurance companies should take proper preparation to contribute,” he said.

Chairman of Marketing Department of DU Professor Dr Mizanur Rahman urged the companies to think out of the box and settle compensations of clients to create a good image of the sector.

Managing Director and CEO of Paragati Life Insurance Limited Md Jalalul Azim said they were suffering severe image crisis because of hassle and unethical practice and a lack of talented officials.

As the chief guest, Chairman of Insurance Development & Regulatory Authority (IDRA) Dr M Mosharraf Hossain said they took some steps to practise professionalism in insurance sector and hoped that it would help overcome image crisis.

“We want to do something here in a transparent way. We’re trying to resolve our problems and ensure good governance for a sustainable economic sector. The days will come soon when people prioritise it as a good financial sector of the country,” he said.

President of Bangladesh Merchant Bankers Association (BMBA) Md Sayadur Rahman, Managing Director and CEO of National Life Insurance Company Limited Md Kazim Uddin, Bangladesh Insurance Association President Sheikh Kabir Hossain and Chief faculty Member of Bangladesh Insurance Academy S M Ibarim Hossain were also present there.

Editor Banijjo Protidin AKM Rashed Shahriar chaired the session moderated by its chief reporter Giash Uddin.