The insurance companies have been asked to reduce expenses and increase surplus fund to attract clients by offering more bonus.
The suggestion came at a group discussion on “Bangladesh Life Insurance Industry: prospects and challenges” held yesterday at Gulshan Club in the capital.
Financial Excellence Limited (FinExcel) and Market Pulse, media wing of LankaBangla Securities Limited, organised the group discussion.
Sultan Abedin Molla, member of Insurance Development and Regulatory Authority (IDRA), presided over the session while CEOs of different life insurance companies were present.
Molla said expenses of life insurance companies are rising abnormally in comparison with their income.
The IRDRA member called for reduction in the expenses and increase in surplus fund so that they can offer handsome bonus.
He deplored the fact that no insurance companies have service rule to protect the CEO jobs and ensure financial facilities.
Molla suggested establishing corporate governance for promotion of the sector and urged the managers of insurance companies to give up the bad practice to delay claim settlement.
Mamun Rashid, business professor and financial sector entrepreneur, who moderated the session, stressed the need for improving fund management efficiency as well as claim settlement.
Ahsanul Islam Titu, managing director of Sandhani Life Insurance, claimed that the top managers are facing trouble to expand business due to not implementation of existing rules and regulations.
“We cannot develop new products to attract clients as there is a lack of qualified professionals in the sector,” he said.
KM Mortuza Ali, CEO of Prime Islami Life Insurance, said efficient service cannot be provided until human resource development.