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IDRA issues guidelines to ensure financial discipline

Published : 22 Oct 2023 10:12 PM

The Insurance Development and Regulatory Authority (IDRA) has issued a guideline in a bid to ensuring good governance, accountability, transparency and increasing financial discipline.

The regulatory authority’s Chairman, Mohammad Joinul Bari, issued the guideline signed on October 19, stressing on the need to ensure good governance through practicing proper financial discipline and professionalism aiming at widening spectrum of insurance services for facing the risk of lives and wealth of people. 

The guideline titled, "Insurers Corporate Governance Guideline, 2023" has come into effect from the date of issuance on October 19, 2023.

Sharing their views in this regard, the sector insiders expressed that the new guideline will help the industry players act more efficiently in establishing professionalism, accountability and transparency in the country's growing insurance industry. 

Mohammad Joinul Bari mentioned that as the regulatory authority, IDRA would provide necessary directives to the insurers to follow the guideline aiming to ensuring good governance followed by corporate houses.

Expressing satisfaction about the guideline, the Vice President of Bangladesh Insurance Association (BIA), also Chairman of  the Nitol Insurance Company Limited, AKM Monirul Hoque told Bangladesh Post that the IDRA has prepared it in consultation with the main stakeholders in the industry like BIA, Insurance sector experts and experienced top executives of the companies. 

"It’s a guideline but not a law, and its prepared in light of the existing laws. The companies will be immensely benefited if they follow the guideline because it suggests establishing practices of good governance, transparency, professionalism that will automatically help companies building better image," Monirul Hoque added. 

He assured that his company will fully comply with the new IDRA guidelines, also as  a BIA leader, he hoped that other players in the industry will do the same.  

Founder Director or Sonali Life Insurance Company and eminent Industrialist, Mostofa Golam Quddus told Bangladesh Post that IDRA, since very beginning, has taken some revolutionary steps to bring about qualitative changes in the country's insurance industry and the corporate governance guideline, issued recently, will also play a significant role in fostering industry growth and changing its images.   

Chief Executive Officer (CEO) of Bengal Islami Insurance Limited, Monirul Alam on Sunday told Bangladesh Post that the guideline has been prepared in accordance with the exisiting laws and adding some additional directives and now it has a complete guideline that will help to achieve compliance issues.

He said that the new guideline has reflections on both the management and board of directors for the companies all of which are time befitting in line with the demands and necessities.