Sustainable Insurance mechanism for poverty alleviation

Micro-insurance conference next month

Staff Correspondent

Aiming to create the field to bring marginal and climate-change-affected people under a sustainable insurance mechanism, an international micro-insurance conference is set to be held in Dhaka next month.

Addressing a press conference on the occasion, speakers on Wednesday stressed inclusive insurance for the emerging markets to cope with climate risks, stating that agriculture, health, micro insurance can play remarkable role in alleviation of poverty in the country.

Bangladesh Insurance Association (BIA) organised a press conference to announce details of the 15th International Micro Insurance Conference at the BIA office, at Paltan in the city. 

BIA President, Sheikh Kabir Hossain, Chief Executive Officer of Rupali Insurance Company, Mojaffar Hossain Paltu, Chairman, Union Insurance Company, PK Shaha, Managing Director and CEO of  Asia Insurance Company, Md. Imam Shahin, and Jalalul Azim, CEO, Pragati Insurance were present on the occasion among others. 

While addressing, BIA President said, Prime Minister Sheikh Hasina will inaugurate the 3-day international conference on October 5 at the Pan Pacific Sonargaon Hotel.

He said, Germany-based 'Munich Re-Foundation', Micro Insurance Network and BIA are jointly organising the conference, styled "Inclusive Insurance for Emerging Market: Coping with Climate Risks".

"The conference will elaborately discuss the issues on changing the economic fate of poor people through sustainable development of the United Nations. The issues include natural disasters, agriculture, weather index insurance, integrating macro, meso and micro insurance schemes, insurance for micro, small and medium enterprises, insurance markets for SMEs, disruptive solution-inclusive insurance in the digital economy etc," Kabir added.  

In reply to a query, he said, the country's insurance industry hoped to multiply its contribution to the GDP soon as several initiatives are planned while some measures are already underway including settling down commission issue, reinsurance in the private sector, modernizing insurance academy etc. 

He said, there  was once an unhealthy competition in the insurance sector, in terms of business, commission etc. for a long period of time. 

"We tried several times to stop this, but failed, it was our failure, or we can say there was a lack of cooperation and coordination among us. This time, we all together, under the leadership or cooperation of the regulatory body, Insurance Development and Regulatory Authority (IDRA),  have come to a concrete decision with regard to the insurance commission of 15 percent including the government's VAT and Tax. The decision was made with the joint effort of the top executives of insurance companies and IDRA", said the BIA President. 

He said, IDRA has already formed a monitoring committee to go for punitive measures in terms of violations of the rules regarding commission. It was named as 'surveillance' committee where they kept representation of BIA, but BIA requested IDRA to avoid its representation in this regard, so that the question of any conflict of interest does not arise. 

BIA leaders said, about 450 representatives from 40 to 45 countries will participate in the conference.