SAARC MEM­BERS TO BUILD UP TIES IN IN­SUR­ANCE

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THE in­sur­ance com­pa­nies and in­dus­try reg­u­la­tors in South Asian coun­tries were urged to strengthen their bonds at the South Asian As­so­ci­a­tion for Re­gional Co­op­er­a­tion ( SAARC) In­sur­ance Reg­u­la­tors’ Con­fer­ence as the re­gion is fac­ing sev­eral chal­lenges due to glob­al­i­sa­tion and eco­nomic cri­sis. An­a­lysts stressed the need to es­tab­lish a SAARC In­sur­ance Reg­u­la­tors’ Com­mit­tee for co­op­er­a­tion among the mem­ber coun­tries and to help each other in in­sur­ance reg­u­la­tions, mar­ket­ing, sell­ing pol­icy, un­der­writ­ing and claims set­tle­ment. Reg­u­la­tors or rep­re­sen­ta­tives of au­thor­i­ties from five SAARC coun­tries in­clud­ing Bhutan, In­dia, Nepal, Pak­istan and Sri Lanka at­tended the con­fer­ence. A to­tal of 26 speak­ers dis­cussed var­i­ous reg­u­la­tory is­sues and pre­sented in­sur­ance trends in seven ses­sions. Nasir A Choudhury, man­ag­ing di­rec­tor of Green Delta In­sur­ance Com­pany in Bangladesh, called upon the in­sur­ance com­pa­nies of the SAARC coun­tries to set up a re­source pool among the com­pa­nies

for rein­sur­ance pur­poses. Farzana Chowd­hury, ad­di­tional man­ag­ing di­rec­tor of Green Delta In­sur­ance high­lighted that the in­sur­ance mar­kets in the re­gion face some un­eth­i­cal prac­tices i. e. un­der­cut­ting pric­ing, charg­ing in­ap­pro­pri­ate prices to com­men­su­rate risks, and a lack of pro­tec­tive mea­sures.

The con­tin­gent also stressed the need to es­tab­lish a rein­sur­ance com­pany among the mem­ber coun­tries that would cater to the needs of rein­sur­ance/ co- in­sur­ance of the in­sur­ance com­pa­nies of the re­gion. There are 62 in­sur­ance com­pa­nies op­er­at­ing in Bangladesh — 18 are life in­sur­ers and the rest are gen­eral com­pa­nies. The present govern­ment pro­mul­gated the In­sur­ance Act 2010 by re­peal­ing the In­sur­ance Act 1938 and es­tab­lished the IDRA with full au­ton­omy.

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