Thursday, 11 August, 2022

Stress on inclusive insurance, risk-free finance for all

  • Diplomatic Correspondent
  • 20 July, 2022 12:00 AM
  • Print news

Speakers at a workshop called upon the government, development partners and private sector for enabling an environment for inclusive insurance and risk financing for Bangladesh’s sustainable development, leaving no one behind.

The event titled “Inception workshop on Country Diagnostic on Inclusive Insurance and Risk Finance for Bangladesh” was organised on Monday at a hotel in Dhaka.

Financial Institutions Division (FID), Ministry of Finance, Insurance Development and Regulatory Authority (IDRA), and the United Nations Development Programme (UNDP) jointly organised the workshop.

Sheikh Mohammad Salim Ullah, Secretary for FID at Ministry of Finance, attended the workshop as the chief guest, while Mohammad Joynul Bari, chairman of IDRA, and Van Nguyen, deputy resident representative of UNDP Bangladesh, were present as the special guests.

Among others, Baqui Khalily, chairman of Risk Management Committee of Bank Asia, and Abdullah Harun Pasha, additional secretary for FID at Ministry of Finance, were also present.    

In his remarks, Sheikh Mohammad Salim Ullah, Secretary for FID at Ministry of Finance, said, “There is an increasing need for decision makers to be involved in developing the insurance products. They also need to understand how climate change risks could affect their investments and how to mitigate those risks through proper planning, incentive structures and financial instruments.”

“In this context, to achieve the mission of developing an efficient, inclusive and robust financial market and services system, FID is continuously working on many projects. Being a part of this project is another milestone for our institution to enter the groundwork in inert-related areas of insurance and risk finance,” he said

AKM. Mamunur Rashid, climate change specialist at UNDP Bangladesh, set the tone of the event.

He provided a brief overview of why inclusive insurance and risk financing are essential for Bangladesh to cover the risks of the most vulnerable communities.

Jan Kellett, team leader at Insurance and Risk Finance Facility (IRFF) of UNDP, delivered a presentation on “Initiatives of the Insurance and Risk Finance Facility, UNDP and several best practices in the space of inclusive insurance and risk financing”.

Van Nguyen from UNDP said, “I hope that under the leadership of FID, MoF and IDRA as the regulatory authorities, strong representation of the insurance industry and relevant key stakeholders – the country diagnostic will provide us with a clear direction for creating enabling environment for mainstreaming inclusive insurance and risk financing in the country.”

“We are committed to continuing our support in the future to strengthen the legislative frameworks, institutional capacity and insurance industry for enhancing the resilience of the most vulnerable communities

and achieving Sustainable Development Goals (SDGs) in Bangladesh.”

M. Baqui Khalily, chairman of Risk Management Committee of Bank Asia, Nasir Uddin Ahmed, first vice president of Bangladesh Insurance Association, Netai Dey Sarker, director of Department of Disaster Management, Bangladesh, also spoke at the event.

Bangladesh is one of the most vulnerable countries due to its low-lying delta ecosystem that exposes the country to several disasters such as flash floods, monsoon floods, cyclones, storm surges, salinity intrusion, draught and unpredictable rainfall.

The government of Bangladesh is keen to explore the insurance industry to consider it as a risk transfer mechanism. UNDP is conducting a country diagnostic that will document and assess the risks and vulnerability in Bangladesh considering the existing enabling environment and financial instruments.

The diagnostic study will highlight challenges, opportunities, and areas where UNDP can, together with partners, provide the necessary support for the government and private stakeholders to improve the enabling environment for inclusive insurance and risk financing.