Ins sector needs innovative products to attract customers

Staff Correspondent

25 January, 2021 12:00 AM printer

Insurance Development and Regulatory Authority (IDRA) Chairman M Mosharraf Hossain on Sunday urged insurance companies to bring people under insurance coverage through introducing new and innovative products.

He also stressed the need for improving the image of the sector to attract more customers to insurance.

“The sector has the capacity to attract mass people,” he said, while addressing a seminar styled: ‘Challenges and Opportunities of Insurance Sector in Bangladesh,' as the chief guest.

Associate professor, banking and insurance department of DU Dr Abdullah Al Mahmud presented the keynote paper on the topic.

Dr Abdullah Al Mahmud said that the insurance sector began its journey in 1972 in Bangladesh but the sector didn’t flourish as per expectation.

He also urged the companies to stop unethical practice for the sake of boosting the sector in near future as there is huge potential market in Bangladesh.

Overcoming image crisis, taking proper steps to boost the sector as Bangladesh would reach 25th global economic country by 2035 so the insurance companies should take proper preparation to contribute here, he suggested.

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

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

There are 78 insurance companies in the country. Of them, 49 are listed in share market. Bangladesh position is 68th in global insurance industry with 0.02 percent share.

The insurance contributes in Bangladesh GDP 0.57 percent while insurance contributes 3.69 per cent of GDP in India and 2.36 per cent of GDP in Indonesia.

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, among othere, were present .