Covid-19 pushing insurers to be innovative, tech savvy

The ongoing Covid-19 pandemic might be the catalyst for innovation in Bangladesh’s insurance industry, which is severely underinsured compared to the country’s economic development, insiders said.

They said it is high time for the industry to go with product innovation and adoption of technology.

“But it will be difficult without regulatory reforms and coordination among stakeholders,” Farzanah Chowdhury, managing director and CEO of Green Delta Insurance, told a webinar on the Bangladesh’s insurance industry and its transformation amid the pandemic.

MM Monirul Alam, managing director and CEO of Guardian Life Insurance, presented a paper highlighting the country’s insurance industry.

Dr M Mosharraf Hossain, chairman of Insurance Development and Regulatory Authority (IDRA), attended the event as the chief guest.

He said the insurance regulator has taken a number of initiatives to help customers deal with the Covid-19 pandemic that has affected almost every business.

The measures include ease of claim settlement, relaxation in motor insurance and a cut in premium rates etc.

“We have almost halved the premium rate, which has reduced cost of doing business significantly,” Hossain said.

Usually, claims are settled in 90 days, but IDRA has brought it down to 30 days for the benefits of the clients, he said.

IDRA chairman also pointed out on the rationalisation of commission to only 15 percent from earlier up to 70 percent in the name of agents.

Alam of Guardian Life Insurance said Bangladesh is one of the least insured countries in the world despite its phenomenal economic growth for over a decade.

“The sector needs to do more and transform itself to match with the economy of a middle-income country,” Alam said in his presentation.

Sajjadur Rahman, editor of Business Insider Bangladesh, moderated the programme.

More to follow…