Finance Minister AHM Mustafa Kamal on Sunday strictly directed 31 Insurance companies to get enlisted with the capital market within three months. He also warned them that their license will be suspended and ultimately canceled if they fail to obey the instruction. He said these while addressing a view exchange meeting with Chief Executives and Chairmen of the Insurance companies at the NEC auditorium, at Agargaon in the city.
He said among a total of 78 Life and Non-Life Insurance companies, 47 have already been enlisted to the capital market but remaining 31 are yet to come to the capital market despite having commitment. "Insurance is a powerful sector. We have brought dynamism in this sector. Insurance is interwoven with economy. Both the insurance and capital market are basic parts of the economy", said the Finance Minister. The Minister repeated that licenses of those who will disobey the instructions, will be suspended primarily, if necessary they will be allowed some span of time and later in failure the government will take tough action against them.
Senior Secretary, Bank and Financial Institutions Division, Asadul Islam, Chairman of the Insurance Development Regulatory Authority (IDRA), Shafiqur Rahman Patwary, President of Bangladesh Insurance Association (BIA), Sheikh Kabir Hossain and senior members of IDRA and BIA were also present in the view exchange meeting.
"Some companies will be in capital market while some will not; this should not be happened. If the remaining 31 companies do not get enlisted within the October, November and December their licenses will be cancelled in four phases", the Minister added. He further mentioned that the government usually provide license to the insurance companies with some objectives, so when it will be found that the set objectives are not met the licenses will be cancelled.
Minister hoped that the country's capital market will be stronger with enlistment of the Insurance companies. While discussing, the leaders of insurance association raised issues including shortage of insurance products, no arrangement of insurance literacy, not settling the insurance claims timely, having no re-insurance organization except General Insurance, lack of corporate governance in insurance industry, lack of actuaries in insurance companies and insufficient application of modern information technology in the industry.