Is insurance sector saturated? Answer to this question may be different. But the current situation of the insurance sector is better than any other time in Bangladesh history. The government has realized the significance of this potential sector for the first time ever. New laws, rules and regulations have come into force in order to make the sector more organized than before. For this reason, most of the insurance companies listed with the stock exchange (DSE) might declare higher dividend than the prior years.
Insurance business is an extremely dominant and rock-solid insurance sector for the economic expansion in the developed countries, but for many years this segment remained unnoticed in Bangladesh. This practice forced insurance businesses to have been stagnant which we are trying to beat these days.A gap was primarily formed between insurance regulator and businesses when the regulator started to impose new laws. But now things have been sorted out and the Insurance Association is proactively assisting the regulator and insurance companies for forming a better business atmosphere.
There are many challenges of the insurance sector. The crucial challenge for the insurance business is the state of mind of the people and also the authorities. The government recognized banks as the only source of funds but in fact insurance companies are comparable and are no less than banks. The government has initiated promoting this segment even though lately which will get good change to this industry.At the same time, we also are not having enthusiasm and approach to reach the general people.
We should spotlight more on the mass people and make them recognize the significance and benefit insurance coverage can provide. IDRA (Insurance Development and Regulatory Authority) also needs to act quickly to ensure the justice in the insurance business. It should boost its vigilance and motoring on the company activities to make those more public friendly and compliant. Some Laws, like management expense rule, are required to perform some key activities in a better method.
The prospect of the insurance sector is better. There is enormous precept of the insurance business in our country as most of the areas are yet to be covered. We have some key sectors that are in need of the insurance coverage. But due to a few complications, both from our end and from the authorities’ end, we are yet to reach the wide segment of the society i.e. Garment workers insurance, factory insurance, insurance against hazardous works.
The insurance for buildings and other establishment should also need to make compulsory which will ensure the compliance of the buildings Codes which is a very blazing issue at this moment. Agricultural insurance may help the poor farmers facing natural disasters. By introducing insurance we can reduce their risk and ensure a certain return if needed.