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Finance Minister AHM Mustafa Kamal on Sunday said all the non-listed insurance companies of Bangladesh should be enlisted with the country’s stock markets by December this year to further energize the bourses and the economy.
AHM Mustafa Kamal came up with the statement while answering the queries of the reporters after attending a meeting on the country’s insurance sector at the NEC Conference Room in the city.
Insurance Development Regulatory Authority (IDRA) Chairman Md Shafiqur Rahman Patwari, Financial Institution Division Senior Secretary Md Ashadul Islam, Bangladesh Insurance Association (BIA) President Sheikh Kabir Hossain and managing directors and CEOs of the insurance companies attended the meeting.
The finance minister informed that some 47 insurance companies are already listed with the capital market while the rest which are the non-listed would have to be enlisted with the capital market within the new timeframe.
“These insurance companies were initially given deadline for entering the capital market before awarding them with licenses. But unfortunately, those are yet to enter the capital market. The IDRA and BIA have assured us that the non-listed insurance companies will enter the capital market,” he said.
Kamal said if those companies fail to become cent percent complaint, then the licenses of those non-listed companies would be initially suspended temporarily. He said if those companies fail to rectify themselves, then there might be merger of companies and if those companies fail to comply finally, then their licenses would be scrapped permanently.
“The government preserves the right to nullify or cancel the licenses, but I think everyone will comply with the decision,” he said. He also said that that the government and the BIA would work together to develop the human capital in this sector. AHM Mustafa Kamal said that all residential and non-residential buildings will be gradually brought under the umbrella of insurance companies.
In the developed countries pet animals are also insured besides humans and properties. All vehicles should have insurance, he further said. Skilled human resource will be built for the insurance sector, he added. He urged the insurance companies to make sure that everyone is benefited with profits.
“If every citizen can be brought under the coverage of insurance, then it (insurance) would play a strong role in the country’s economy as a strong financial tool,” he said, adding that the insurance premium should have to be in competitive rates.
He said that the government is planning to observe the ‘National Insurance Day’ on March 1 from the next year when the entire nation would be a part of the centenary celebration of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman’s birth anniversary.
Bangabandhu in his life was also associated with an insurance company. Mentioning that the insurance sector is a strong area of the country’s economy, Kamal said earlier there were misperception, propaganda and crisis of confidence over this sector.
“But, now this sector has overcome all these obstacles,” he said, adding that plan is there to further diversify this sector. The finance minister also said that 15 percent commission would be fixed for all of those who would sell the insurance.
IDRA Chairman Shafiqur Rahman Patwari said that various types of insurance services would be introduced to further enhance the penetration of this sector while a database would be developed highlighting the clients’ details and policy numbers.
According to the IDRA, there are some 78 insurance companies in the country including 32 life insurance companies and 46 non-life insurance companies. The country’s insurance sector witnessed an overall investment of Taka 36,935 crore in 2018 with a 3.20 percent growth.
(AA)
