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Corporate - January 7, 2024

New insurance policy soon to boost service

Syed Nasir Hossain : There is no end to customer suffering in the insurance sector. But not all insurance companies suffer customers. There are some insurance companies who have lost their credibility with customers. Sources said that such complaints have come to the Department of Banks and Financial Institutions.
Based on various complaints of customers, new insurance policies are being made to bring some reforms and accountability in the insurance sector. About the main reason behind the creation of this policy, a responsible officer of the Bank and Financial Institutions Department said that the spread of insurance services has not been the same as the spread of insurance. Apart from this, there are allegations of irregularities in several cases. To eliminate these irregularities, the idea of creating a new insurance policy has come.
According to the concerned sources, the insurance sector has been suffering from lack of good governance for a long time along with high administrative costs, inadequate capital, lack of risk management activities. The proposed new insurance policy includes government bank guarantees for state needs. At the same time, the issue of insurance is being considered seriously. Apart from this, there is insurance coverage against the big projects that are invested from the banking sector.
It is reported that a policy on insurance was formulated for the first time in 2014 to develop the insurance sector. Many years have passed since then. But insurance policies are no longer newly created. New strategies and action plans will be adopted to overcome the issues that were the subject of the previous policy.
The proposed new insurance policy considers insurance business as a socio-economic service business. Apart from this, it is said that the social security zone will be expanded. The new insurance policy envisages expanding the scope of health insurance and risk-based insurance in the context of a developed Bangladesh as per the SDGs.
The insurance penetration rate in the country’s economy is not that satisfactory in Bangladesh. Insurance penetration rate is very high in developed countries. The new insurance policy has taken the matter seriously and is thinking of increasing the penetration rate.
At present, among the number of insurance companies in the country, private insurance companies are more. However, customers have no complaints about government insurance companies.

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