Life insurance structure restructuring costs to be reduced by 15 per cent: IDRA chairman

IDRA chairman said in the picture. M Mosharraf Hossain.

Staff Reporter: The reorganization of the life insurance company’s field-level organizational structure will reduce the management costs of the companies by 15 percent, said the Chairman of the Insurance Development and Regulatory Authority (IDRA). M Mosharraf Hossain. Earlier, he had mentioned that the circular issued on Thursday would be effective from September 1.

He made the remarks at a virtual exchange meeting organized by the Insurance Reporters Forum (IRF), an organization of insurance journalists, on Sunday (June 20th).

The meeting was held under the chairmanship of Golam Maula, president of the organization. Calling on journalists to play a responsible role in the development of the insurance sector. M Mosharraf Hossain said the media can play a big role in preventing any kind of fraud and irregularities in the insurance sector.

IRF General Secretary Sakhawat Hossain Sumon said. M Mosharraf Hossain further said that many changes are being made in the laws and regulations of the insurance sector. There are some problems with non-life. In that case audit activities are ongoing. At the same time, we are trying to fill the gap of actuaries in the insurance sector. Above all, the initiatives being taken for the development of the insurance sector will pay off in the next 3/4 years and it will take the insurance sector to a better position, he said.

Responding to a question from reporters, the IDRA chairman said that a life insurance company spreads a kind of notoriety when it does not pay its insurance claims on time. That is why we have taken steps to strengthen the financial base of life insurance companies.
In the meantime, the supervisory level and commission structure have been restructured. This will reduce the cost of life insurance companies by up to 15 percent. Which will strengthen the financial position of the company.

Regarding the 60 per cent stake held by insurance owners, the IDRA chairman said, “We are facing two problems in this regard.” One is in the case of listed companies. The other is in the case of non-listed companies. What we are doing in the case of non-listed companies is that if they want to be listed on the capital market, we are not approving them if they do not hold 80% of the shares.

And for those who are listed or in the capital market, there are two complications. One is a legal complication, the other is an operational complication. Since they are listed on the capital market, they have to buy shares from the capital market to cover 80 per cent of them. There are some problems in this case. Since the issue is legally stated here, we are emphasizing the legal issue and have continued discussions with the companies to implement it accordingly.

Source: Daily StockBangladesh by

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