Insurance sector need people’s trust: Secretary Salim Ullah

Staff Correspondent: Secretary of the Financial Institutions Department of the Ministry of Finance Sheikh Mohammad Salim Ullah has underlined the need for ensuring people’s confidence in insurance for booming the sector.

“Insurance is such a sector where people need trust… there is no scope for cheating or lying in the insurance sector,” he said while speaking as the chief guest at a seminar of on dissemination of the Corporate Governance Guideline.

The seminar organised by Development and Regulatory Authority (IDRA) was held at CIRDAP auditorium on Monday with its Chairman Mohammad Zainul Bari in the chair.

Salim Ullah said, in terms of accounting, insurance is an ongoing concern and it will continue.

“If anyone comes in the sector, he/she has to stay. And if anyone wants to close the business, they should not come here,” he observed.

The Financial Institutions Department Secretary pointed out that economic activities will increase would increase to build a Smart Bangladesh. “At the same time the risk will increase. Risk management will also be required. And this will require insurance,” he added.

“Currently there are 81 insurance companies, more insurance companies will come,” he said adding, “There is huge demand and thus supply is needed.”

He further said the insurance companies that work with risk must be risk-free first. That’s why the corporate governance guideline has been issued to address the risks.

Salim Ullah said that the insurance company is separate and better than other companies and this position can be lost because of one or two companies.

He asked the insurers to work hard and maintain the position of insurance sector.

Meanwhile, speaking at the seminar, President of Bangladesh Insurance Forum (BIF) BM Yusuf Ali put emphasis on the need for implementing the corporate governance guideline to ensure development and good governance in the insurance sector.

The corporate governance guideline prepared by the Insurance Development and Regulatory Authority (IDRA) is very timely to ensure development and good governance in the insurance sector. With implementation of the guidelines, good governance will be established in the insurance sector, he said.

Yusuf Ali, who is also the Chief Executive Officer of Popular Life Insurance Company Limited further said the corporate governance guideline would be the foundation of Bangladesh’s insurance industry. “It will ensure that insurers operate with the highest levels of transparency, accountability, and ethical conduct,” he added.

BIF president Yusuf Ali underlined the need for ensuring job security for CEOs of the insurance companies to ensure good governance in the sector. “The CEOs can play and effective roles in establishing good governance in the insurance sector if their jobs are protected,” he added.

He claimed that no money was stolen under the leadership of CEOs of insurance companies and they are not responsible for corruption in the sector.

Member Administration of Insurance Development and Control Authority Md Dalil Uddin, among others, also spoke in the seminar.

The CEOs of all insurance companies, along with all representatives of Bangladesh Insurance Association, Bangladesh Insurance Forum, Bangladesh Insurance Academy and Bangladesh Insurance Sector Development Project, directors, deputy directors and assistant directors of all organizations took part in the seminar.