The use of technology is increasing in the implementation of Smart Bangladesh vision. Digital transformation is happening in every sector. Such transactions are taking place in mobile phones. Hackers are stealing the information on the device. That is, there is also a risk in this case. As a result, stakeholders have strongly demanded the formulation of policies of insurtech to sustain the digital transformation of every sector including fintech.
Speakers raised this demand in a round table meeting organized by Bangladesh Association of Software and Information Services (BASIS) on Thursday. In the meeting held at BASIS Auditorium on ‘Importance of InsurTech in Creating Smart Bangladesh’, the speakers said that technology must be used to make insurance more accessible, efficient and affordable for the people of Bangladesh.
Among them, BdJobs founder Fahim Mashroor said that the mainstream insurance companies and insurtech companies should work together to develop the country’s insurance sector. Also, for three to five years, necessary policies should be made to protect local insurtech companies from unfair competition from foreign companies. InsurTech is a game-changer for the insurance industry in Bangladesh. New technology-based innovations must be sought to improve insurtech services and serve customers.
At the beginning of the round table discussion, the chairman of Banking and Insurance Department of Dhaka University Dr. Hasina Sheikh presented the keynote moderated by Fida Haque, co-founder and CEO of BASIS Insurtech Startup Adarsha Praniseba Limited.
In the presentation, it is said that half a hundred insurtech companies have already started working in the country to deliver insurance services digitally at the marginal level. But since there is no government policy or regulation on insurtech, there is no sustainable long-term investment in this sector. Currently only licensed insurance companies can offer insurance services. But, new generation insurtech and fintech companies are playing an important role in bringing new technology-based innovative insurance services to the market based on artificial intelligence -AI, IOT, data-science based in many countries around us. There has been a lot of venture capital investment in the insurtech sector from India, China, in many other developing countries including Indonesia. But due to the lack of separate legal recognition of insurtech companies in our country, there is not enough investment in this sector. Speakers at the round table meeting said that only less than 5% of the population in Bangladesh is covered by insurance services. In neighboring countries this rate is above 20-30%, as technology-based insurtech companies are leading the way in creating the insurance market.
On behalf of BASIS, a draft Insurtech guideline was handed over to the Chairman of the Insurance Development and Regulatory Authority. In the speech of the chief guest, Chairman of Insurance Development and Regulatory Authority Mohammad Zainul Bari said, “It is possible for the insurance industry in Bangladesh to provide more accessible and affordable services to the citizens. We are working to build a smart Bangladesh. That is why the use of digital technology is essential. And very soon IDRA will formulate a policy for the insurtech industry.”
First Vice President of Bangladesh Insurance Association, Nasir Uddin Ahmed Pavel said, “The use of insurance in the whole world is more than 7% percent, which is 14 percent in the case of Taiwan. The need for Insurtech is very high in the expansion of insurance services in Bangladesh. If all those who are working at different levels of insurance work together, the insurance sector will expand in Bangladesh as well.”
Md. Abdur Rahim Khan, Additional Secretary, Export Branch, Ministry of Commerce, Sukesh Kumar Sarkar, Director General of National Academy for Planning and Development (NAPD), Managing Director of Chartered Life Insurance Company Limited, SM Ziaul Haque and Rafiqur Rahman, Additional Managing Director of Phoenix Insurance were also present in the event.
