Prime Minister Sheikh Hasina on Tuesday asked insurance companies to give a special attention to their Corporate Social Responsibility (CSR) instead of gluing their eyes only to profit.
“It’s urgently needed that the insurance industry is used for the welfare of humankind,” she said while inaugurating the three-day15th International Conference on Inclusive Insurance ‘Coping with Climate Risk’.
Bangladesh Insurance Association(BIA) and the Munich Re Foundation in cooperation with the Micro insurance Network organised the conference at Pan Pacific Sonargaon Hotel in the city.
The Prime Minister asked the insurance companies to play a more effective role in keeping the production as well as the economy free from any risk. “We think life insurance can be utilised in facing natural calamities. This can play a special role,” she said.
In Bangladesh, the use of life insurance in facing losses caused by natural disasters is very much insignificant, she said, expressing the hope that those involved in the insurance sector will play their due role so that people living in the venerable areas could live. Sheikh Hasina said the government is constructing houses and cyclone shelters in the areas that are prone to natural calamities.
“We’re giving special attention to facing risks. If the insurance companies come forward and stand by the people, I think the people of our country will be pulled out from poverty and the country will be able to step towards overall development faster,” she said. Briefly describing government’s various programmes for the development of the insurance sector, the Prime Minister said the non-listed 27 insurance companies have been given time until December next to be enlisted in the capital market.
Putting emphasis on maintaining transparency in the insurance industry, she said a directive has been issued to bring transparency in transactions in insurance-related activities.
Hasina said a transaction of above Tk 10,000 must be made through a bank while all insurance companies have been instructed to show their updated insurance claims on their respective websites.
Talking about the insurance claim settlement problem, she said huge initiatives have been taken to bring out the insurance industry from the problem and safeguard the interests of consumers. “As a result, this industry has settled the insurance claims of Tk 8,000 crore during the last two years. The rate of claim settlement has significantly increased due to the zero-tolerance policy of the authorities concerned.”
The Prime Minister said the process of Unified Messaging Platform (UMP) is underway to safeguard the customers from cheating while making transactions with insurance companies.
She termed the inadequacy of information as a major problem for insurance customers for which they remain in the dark about their deposits, saying the process of the UMP will be able to help overcome this problem.
Referring to the growing trend of constructing high-rise buildings with the country’s huge economic development, Hasina said initiatives have been taken to introduce building insurance to ensure the financial security against risks.
Mentioning extreme natural disasters like cyclone, storm, flood, drought, rain and earthquake which are common phenomena in various parts of the world, she said being the largest Delta in the world, Bangladesh is one of the most vulnerable nations to climate change.
