The country's insurance sector is experiencing a lack of professionalism, extreme mismanagement and a culture of lobbying, said National Board of Revenue (NBR) chairman Md Abdur Rahman Khan.
He also said that due to these reasons, a deep negative perception has been created among the common people about the insurance sector.
He said these while speaking as the chief guest at the pre-budget discussion for FY27 held at the NBR conference room in Agargaon in the capital on Wednesday (April 1).
The NBR chairman said that once motor insurance was mandatory and could be done at a very low cost. But due to the lack of professionalism among insurance companies, that obligation is no longer effective.
He expressed surprise and said that on the one hand, insurance companies are complaining about lack of business, while on the other hand, lobbying is still being done from various quarters for the license of new insurance companies.
Highlighting the shortage of skilled manpower in the insurance sector, Abdur Rahman Khan said that there are practically no actuaries in the country. Yet actuaries are a very important profession in the insurance sector.
“There are only two actuaries in Bangladesh. One of them is over 88 years old. The other is relatively young, who happens to be my daughter. How is it possible to bring discipline to the sector in this situation?”
He alleged that many insurance companies are not keeping their promises to customers. Especially after the end of the life insurance term, customers have to suffer for a long time to get the money due.
The NBR chairman said: “People pay premiums throughout their lives, but struggle to get money after maturity. In many cases, even employees of insurance companies are being deprived of the benefits they deserve after retirement.”
He also said that sometimes he also receives such complaints where it is seen that the benefits due to retired officials of an insurance company have been withheld.
The NBR chairman warned that people’s trust will not return if good governance is not ensured in the insurance sector. He said, “If good governance is not ensured, people will think that the government is trying to force insurance companies to make profits.”
Representatives of various organizations including the Association of Bankers Bangladesh (ABB), Bangladesh Association of Banks (BAB) and Bangladesh Insurance Association presented their budget proposals in the pre-budget discussion.
