SAARC MEMBERS TO BUILD UP TIES IN INSURANCE
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.