Considering the overall state of the non-life insurance industry, I think, that is, my personal opinion, that there is a dire need to revise some of the rules. At present the insurance sector of Bangladesh is not able to achieve its desired goals in the national economy. Which is very harmful for future insurance industry.
2. Our insurance premium rates are very high with the world insurance market.
3. Agent system needs to be abolished in case of non-life insurance.
4. There is a dearth of products in the non-life insurance sector.
5. In order to expand the scope of non-life insurance, it is absolutely necessary to identify the insured sectors and make it mandatory.
6. It is necessary to take practical steps for the development of the non-life insurance industry by amending certain sections of the Non-Life Insurance Act.
Below are some of my personal views on solving the above problems and developing the non-life insurance industry-
1. Devolution of public property insurance to general insurance corporations alone is essential for the development of the private sector non-life insurance industry. This will create a sound discipline in the insurance sector.
2. The practice of distributing 50 percent of government property insurance premium equally among all private non-life insurance companies needs to be abolished.
3. It would be timely to consider the non-tariff market in Bangladesh with a view to creating a sound and transparent market for the non-life insurance industry. Because the rate of tariff market in Bangladesh is much higher than the world market. This creates a tendency to pay additional commissions. Moreover, as a result of the non-tariff market, we will be able to provide competitive insurance services with the insurance services of the world.
4. In terms of re-insurance, the existing law ie 50% mandatory re-insurance with General Insurance Corporation and the remaining 50% can be done in the overseas market, it can be reduced to 30% with the General Insurance Corporation and 70% in the overseas market. can However, 70% may have the option to reinsure either with a general insurance corporation or with foreign reinsurers.
5. Any new non-life insurance product developed by the insurance company must first be given an opportunity to market and if successful, the company will seek approval of the new product from the Insurance Regulatory Authority. As this will reduce the regulatory burden, companies will be encouraged to innovate new products.
