Insurance laws go digital as IDRA launches online manual

All laws, rules, regulations and circulars governing insurance companies will now be available in digital form, said Dr M Aslam Alam, chairman of the Insurance Development and Regulatory Authority (IDRA).

He made the remarks on Tuesday at the launch of IDRA’s new website and Digital Insurance Manual.
Speaking as the chief guest, Bangladesh Bank Governor Dr Ahsan H Mansur said good governance delivers results only when it is effectively implemented, assuring full support from the banking sector.

“There are extensive governance requirements, and these must be complied with. Regulators, insurers and all stakeholders share responsibility for ensuring compliance,” he said, adding that economic growth cannot be allowed to proceed without proper oversight.

At the event held at the BIM Foundation auditorium in the capital, the governor stressed accountability in the insurance sector, noting that many companies collect premiums but fail to meet their obligations to customers.

“Due to insufficient funds, liabilities cannot be paid,” he said, instructing chief executive officers and chief financial officers to manage funds prudently and responsibly.

He also pointed out that Bangladesh’s insurance sector remains small. While the government can initiate reforms, he said, market participation is crucial for product development. Insurance, he added, can cover both movable and immovable assets.

The governor urged insurers to submit data through the regulator’s new website, warning that delays in digitisation would otherwise persist. 

Bangladesh Bank, he said, would provide support in this process. He also stressed the need for cashless transactions in the insurance sector, noting that the regulator would develop guidelines to facilitate premium payments through banking channels.

IDRA Chairman Dr M Aslam Alam said the Digital Insurance Manual has made essential information publicly accessible, allowing users to easily follow any law, rule, regulation or procedure related to insurance.
“The manual is user-friendly and available as an e-book, in HTML format, and as a downloadable PDF,” he said.

He added that legal, digital and institutional reforms have already been undertaken, describing the manual as a major step in IDRA’s digital reform agenda.

“If these reforms are implemented properly, the insurance sector will see significant progress within the next five years. Otherwise, existing problems will become more complex,” he warned.

Speaking as a special guest, Bangladesh Insurance Forum President BM Yousuf Ali said insurers have deposited funds in banks and urged the central bank governor to ensure that claim settlements are not hampered by fund shortages.

Praising the current regulatory authority, he said several reform initiatives were already under way and expressed optimism that the sector would regain public confidence.

The event was chaired by IDRA Chairman Dr M Aslam Alam. Others present included Bangladesh Insurance Association Vice-President Kazi Sakhawat Hossain Lintu and IDRA Non-Life Division Member Abu Bakar Siddique.