Poor financial reporting puts policyholders’ thousands of crores at risk: IDRA chief

Insurance companies lack transparency in financial reporting, while many chief financial officers (CFOs) lack even basic financial expertise, Insurance Development and Regulatory Authority (IDRA) Chairman Mir Nadia Niveen has said.
She warned that such shortcomings could put policyholders’ funds worth thousands of crores of taka at risk and urged insurers to appoint qualified and accredited CFOs without delay.
She made the remarks at a roundtable titled “Towards a Stronger and Sustainable Insurance Industry: The Way Forward”, organised by the Department of Banking and Insurance at the University of Dhaka on Saturday.
Bangladesh Insurance Association (BIA) President Saeed Ahmed attended the event as the guest of honour, while the department’s Chairman Prof Dr Md Shahidul Islam chaired the discussion.
Nadia said many CFOs attending meetings with the regulator failed to answer basic financial questions and even confused fundamental concepts such as capital and investment.

Questioning how insurers could properly manage huge sums of policyholders’ money without adequate financial expertise, she said she might conduct future discussions entirely in Bangla to ensure that language barriers could not be used as an excuse for a lack of understanding.
Criticising some insurers for resisting the recruitment of qualified CFOs, she described their reluctance to invest in professional expertise as “penny wise and pound foolish”. Such cost-cutting, she warned, could expose companies to greater financial and governance risks.
She urged insurers to divert funds from other investment areas, if necessary, to recruit accredited CFOs, saying qualified professionals could strengthen financial management and corporate governance.
The IDRA chairman also stressed that the regulator would operate independently and would not tolerate attempts by companies or individuals to influence its decisions or put pressure on its activities. She warned of strict action against any interference while welcoming constructive engagement with stakeholders.
She stressed that professional competence and accountability in managing policyholders’ funds were non-negotiable.