1. Mr. Ahasanul Islam Titu, MBA (USA)
National Insurance Policy:
“Progress so far towards implementation”
Mr. Ahasanul Islam Titu, MBA (USA)
CEO, Sandhani Life Insurance Co. Ltd.

2. Introduction
National Insurance Policy 2014 was developed and gazetted considering the dream of “The Father of Nation, Bangabandhu Sheikh Mujibur Rahman” to make a successful economy in Bangladesh
Considering the dream of Bangabandhu, Bangladesh Government aim to ensure resident’s social and financial security by implementing mandatory Life, Health and Property insurance gradually.
Further it was forecasted in the National Insurance Policy that 100% Peoples and risk based assets in Bangladesh should be insured

3. Introduction Outset of the National Insurance Policy 2014
Background of Bangladesh Insurance Market Economic contribution of insurance Problems of insurance industry Insurance Act, rules & regulations Strategic planning of national insurance policy

4. Background
There are 76 Private Insurance Companies in Bangladesh 31 Life Insurance Companies & 45 Non Life Insurance Companies Side by side SBC & JBC are doing government business traditionally Insurance Penetration rate in Bangladesh is less than 1% since last 10 years

5. Background
There are 76 Private Insurance Companies operating insurance business in Bangladesh 31 Life Insurance Companies & 45 Non Life Insurance Companies Side by side SBC & JBC are doing government business traditionally Insurance Penetration rate in Bangladesh is less than 1% since last 10 years

6. Background
GDP Contribution of Insurance Sector in Bangladesh reached at .38% which is continuously in a decreasing trend.
GDP Contribution of Insurance Sector in Asian Countries at current price is 5.5% on 2015
Global insurance premium growth increased to 3.8% in 2015 from 3.5% in 2014

7. Background Premium income & Growth of life Insurance Companies Year
2015
2016
2013
2012
2011
Premium Income (mill)
70,779
66,878
62,429
62,438
59,735
Growth Rate
5.83%
7.12%
-0.01%
4.52%

8. Background Income & Growth of Non-life Insurance Companies Year 2015
2014
2013
2012
2011
Premium Income (Mill)
24,140
22,679
21,037.5
19,457
17,274
Growth Rate
6.44%
7.8%
8.12%
12.63% -
U-writing Profit (Mill)
2,833
2,798
3,191
3,060
2,000
1.25%
(12.31%)
4.28%
53%

9. Economic contribution of insurance
GDP Contribution of insurance in worlds Economy
UK : 11.8%
USA: 8.1%
Japan: 8.1%
Bangladesh: %
Brazil: 3.2%
India: 4.1%
China: 3%

10. Problems of insurance industry
Absence of insurance awareness in both private and public sector
Insurance is not mandatory in Bangladesh other than marine & car insurance
Human Resources problem
Lack of rules and regulations
Lack of corporate governance

11. Problems of insurance industry
Lack of integrated software and IT based infrastructure
Lack of insurance education
Lack of Corporate agents and individual agents
Moral hazard problem among field officers
Lack of innovative insurance product
Lack of quality insurance institute

12. Insurance Act, rules & regulations
New rules is required instead of rules enacted on Total 16 rules and regulations have been gazetted on Adcock basis (5 rules & 11 regulations), whereas 35 rules & regulations yet to be gazzeted Few areas of Insurance Act 2010 required to be amended Lining other Acts with Insurance Act for smooth process of financial market

13. Strategic planning of national insurance policy
Insurance to be a part of the national budget of Bangladesh Confirming 4% GDP contribution of insurance sector in the national economy within 2021 Increasing the penetration rate of insurance in Bangladesh in a suitable position

14. Strategic planning of national insurance policy
Confirming maximum use of insurance policy in the field of health, agriculture and property insurance
Confirming effective use of micro insurance and bankassurance
Confirming insurance for as a tool of social safty-net

15. Strategic planning of national insurance policy
Confirming proper insurance education
Implementing 50 objectives of National Insurance Policy within a time frame
Accountability of the responsible authority incompliance with the implementation of related objectives

16. 50 objectives of the National Insurance Policy
Time frame
Total objective
Implementation status
Short term 12 X
Mid term 28
Long term 10

17. IDRA & Ministry of Finance
12 Short Term Objectives and guideline to be achieved on or before 2015
Current reform activities of the insurance industry should be target oriented
Responsibility:
IDRA & Ministry of Finance
Fix the target premium income, penetration rate and a target time to achieve the plan
Objective 1
Ensure appropriate formation of Insurance Laws
Policy analysis & Research the laws to set up international level.
Strategic Action
Objective 2

18. 12 Short Term Objectives and guideline to be achieved on or before 2015
Minimum capital of insurance companies to be ensured
Responsibility:
IDRA & Ministry of Finance
Set up a guideline for the insurance companies those are failed met the minimum capital.
Objective 3
Strategic Action
Ensure secured electronic communication through data transfer
Responsibility:
All Insurance Companies, IDRA
Ensuring computerized risk based regulatory system; confirm integrated accounting system
Objective 4

19. 12 Short Term Objectives and guideline to be achieved on or before 2015
Enacting insurance investment rules & eliminate unlawful investment process
Responsibility:
IDRA & Ministry of Finance
Surplus fund of insurance companies to be invested in an attractive portfolio.
Objective 5
Strategic Action
Objective 6
Strengthening IDRA
Responsibility:
IDRA & Ministry of Finance
Appointing new employees
Confirming infrastructure
Ensuring workers Independence in the workplace

20. IDRA & Ministry of Finance
12 Short Term Objectives and guideline to be achieved on or before 2015
Ensuring uniform organizational structure for all insurance companies
Responsibility:
IDRA
Guideline to be prepared
to evaluate employees skill to confirmed a certain level of standard.
Objective 7
Strategic Action
Objective 8
Create professional atmosphere in the insurance sector
Responsibility:
IDRA & Ministry of Finance
Establish Chartered Insurance Institute & its further operational plan

21. 12 Short Term Objectives and guideline to be achieved on or before 2015
Human Resources Development of Insurance Industry
Responsibility:
IDRA, Ministry of Finance, Education Ministry, UGC, Insurance Academy, University Authority
Make a strengthen Bima Academy; Make collaboration with international Chartered Insurance Institute and take Actuarial measures
Objective 9
Strategic Action
Prepare disciplinary guideline and ensure its standard practice
Responsibility:
IDRA
Prepare and publish the booklet of the disciplinary guideline and ensure its practice
Objective 10

22. 12 Short Term Objectives and guideline to be achieved on or before 2015
Protect illegal exercise of excess commission
Responsibility:
IDRA
Investigate insight of the excess commission practice and Enforce circular to protect excess agent commission
Objective 11
Strategic Action
Objective 12
Identify risk based capital and confirm re-insurance
Responsibility:
IDRA
Finding limitations and enforcing guideline

23. 28 Mid-term objectives
18 Objectives Supposed to be implemented within 2016
10 objectives will be implemented within 2017
Sl No
Objective
Implementation Year
Responsibility 01
SBC & JBC will be managed commercially
2017
IDRA, Fin-Min; SBC & JBC 02
Identify & Analysis other acts which are contradictory with insurance Act
2016
IDRA, Fin-Min

24. 28 Mid-term objectives Objective Target Year Responsibility
Sl No
Objective
Target Year
Responsibility 03
Deposit Insurance
2016
IDRA & Fin- Ministry 04
Expanding lawful Insurance business all over the country
IDRA & all Ministry 05
Considering institutional risk management strategy and confirming its implementation
IDRA 06
Enforcing control management in micro insurance

25. IDRA & all Ins Companies
28 Mid-term objectives
Sl No
Objective
Target Year
Responsibility 07
Analysis actuarial valuation system and its regulations
2017
IDRA 08
Institutionalizing customers claim settlement procedure
2016
Insurance Companies 09
Forming universal internal audit and inspection system for all insurance companies
IDRA & all Ins Companies

26. 28 Mid-term objectives Objective Target Year Responsibility
Sl No
Objective
Target Year
Responsibility 10
Confirming professionalism of controlling body
2017
IDRA 11
Confirming Public disclosure
2016
IDRA & all Ins Com, Fin-Min 12
Forming Financial intelligence cell
IDRA, Fin-Min, BFIU 13
Insurers accounts to be developed according to international standards
IDRA & all Ins Companies

27. 28 Mid-term objectives Objective Target Year Responsibility
Sl No
Objective
Target Year
Responsibility 14
Implementing Solvency Margin 1
2016
IDRA 15
Widening export credit guarantee scheme
IDRA , Cmrc Ministry, Export Bureau, SBC 16
Enacting Shariah based law for Islamic insurance companies for the smooth process of Islamic Ins business operation
IDRA, Fin-Min, Min-Religion

28. 28 Mid-term objectives Objective Target Year Responsibility
Sl No
Objective
Target Year
Responsibility 17
Skill development of broker /surveyor / financial associates
2016
IDRA 18
Expand in-country re-insurance business
IDRA, Fin-Min 19
Mandatory insurance for government property
2017
IDRA & all Ministry 20
Widening insurance literacy
IDRA, Min-Edu, All Ins.

29. 28 Mid-term objectives Objective Target Year Responsibility
Sl No
Objective
Target Year
Responsibility 21
Implanting pension fund for private sector employees
2016
IDRA, JBC, Fin-Min, NBR, All Ins 22
Development of conventional agency into multidimensional way
IDRA, All Ins Companies 23
Implementing rewarding system in Insurance Industry
IDRA 24
Ensuring area wise and national assistance to meet the risks
2017
IDRA, Min-Home & Min-Fin, All Ins.

30. 28 Mid-term objectives Objective Target Year Responsibility
Sl No
Objective
Target Year
Responsibility 25
Meeting customers demands and plan new ideas for the development
2016
IDRA, All Ins 26
Analysis mortality and mobility table
IDRA, All Ins Companies 27
Ensuring Corporate Governance practice in insurance sector
2017 28
Implementing National Insurance Day
IDRA, BIA, Fin-Min, All Ins Companies

31. 10 Long-term objectives to be met from 2018-2021
Sl No
Objective
Responsibility 01
Implementing Solvency Margin- 2
IDRA 02
Analysis of the premium income of Life Insurance Business to forecast a new target 03
Increase insurance awareness among populations
IDRA, BIA, Ministry of information 04
Mandate Insurance for all workers
Ministry of labor welfare , IDRA and All insurance companies

32. 10 Long-term objectives to be met from 2018-2021
Sl No
Objective
Responsibility 05
Innovate multidimensional Insurance policy
IDRA, All Insurance Companies 06
Institutionalization of group insurance for all commercial organizations step by step
IDRA, Ministry of commerce and industry, FBCCI 07
Widening overseas insurance business
IDRA, Ministry of Finance, All Ins. companies 08
Attracting female participation in the insurance industry

33. 10 Long-term objectives to be met from 2018-2021
Sl No
Objective
Responsibility 09
Motivate innovating new product for the poor people
IDRA, Concerned Ministry & BIA 10
Implementing social insurance nationally