The insurance regulator wants the removal of the minimum entry capital requirement of Rs 100 crore for setting up an insurance business in a bid to facilitate the entry of multiple players such as standalone micro insurers and niche players.   Debasish Panda, chairman, Insurance Regulatory and Development Authority of India (Irdai), said it should be left to the regulator instead to decide what should be the entry fee for interested players, depending on the size of the business and operations. According to the current norms, insurers are required to have a minimum paid-up capital of Rs 100 crore.   “We propose to request the government to amend the [IRDA] Act and remove the so-called minimum requirement. It should allow the regulator to decide that, based on regulations that will be framed and amended from time to time depending on the market conditions,” Panda said in his maiden address to the industry and the press on Thursday.   Among the many changes in regulations that Panda is seeking are the investment guidelines. “The current investment guidelines for the assets under management are being revisited, and the ask from the industry is that they should be given a little more leeway so that they can invest in riskier instruments such as infra financing,” Panda said.   The regulator is also looking at revisiting the current investment norms to rationalise them so as to bring more investments into the country.   The Irdai chief also asked insurance companies to come up with a road map when it comes to going public. “Our idea is to nudge them to go for listing and therefore have access to the markets to raise capital,” Panda said. “Today with the LIC listing, close to 60 per cent of the market gets listed. That brings in a lot of transparency, disclosures, and access to the market to raise capital. This will help them grow, and our ultimate target of deepening insurance penetration will happen.”   The insurance regulator also intends to reduce the compliance burden on the insurance companies, which will help reduce the cost of compliance for companies and reduce the requirement of resources and time. A working group will be constituted to look into this.   Irdai also wants to revamp the product certification process, wherein the players will be able to follow the system of “use and file” rather than “file and use”.   “We will have light-touch regulations. And, these will be principle based rather than rule based. Rule-based regulations do not provide flexibility. The industry has matured and it understands the rules of the game,” Panda said.   The regulator has plans to introduce new channels of distribution and widen the scope of existing channels to ensure widespread availability of insurance products. It is exploring the launch of Bima Mitra on the lines of Bank Mitras to enhance the scope of insurance distribution.   It also wants to facilitate the lowering of operating costs and review the commission and the remuneration structure of insurance products with the objective of reducing cost for policyholders.   “The broad vision is that every Indian should have a life insurance cover; every household should have a health insurance cover. Also, everyone at the bottom of the period mandatorily should have dwelling insurance cover. We also want to have one stop insurance solutions for MSMEs. We also want to provide income security for the ageing population through annuity and pension products,” Panda said.   Commenting on the state of the three state-owned general insurers, Panda said, “The government is very much aware of the present financials of the insurance companies. The regulator has given some forbearance with advice that they have to infuse more capital in order to perform at an optimum level.”   Source: Business Standard  

Life Insurance Corporation, which is bound for the nation's largest share sale by March, is the strongest and the largest brand in the country with a valuation of USD 8.656 billion (around Rs 64,722 crore), which also makes it the third strongest insurance brand globally, according to a brand valuation report. According to the London-based Brand Finance, which is a brand consultancy, the market value of LIC will become Rs 43.40 lakh crore or USD 59.21 billion by 2022, and Rs 58.9-lakh crore or USD 78.63 billion by 2027. LIC's brand value also climbed in overall global brand rankings by 32 places to become the world's 206th most valuable brand in 2021, from 238th slot in 2020. According to this valuation, LIC is largest and strongest brand in the country with a valuation of USD 8.655 billion in 2021, which grew by 6.8 per cent from USD 8.11 billion in 2020, when the value of top 100 insurers declined by 6 per cent globally. The corporation ranks first in brand strength amongst the competitor set with a score of 84.1 and it ranks third in brand strength globally after Poste Italiane of Italy and Mapfre of Spain and is also the 10th most valued insurance brand globally, according to the report prepared in November 2021 but is yet to made public.   Interestingly, the state-owned insurance behemoth gained in brand value by 6.8 percent last year, all other top 100 insurers saw their brand value decline by 6 percent from USD 462.4 billion in 2020 to USD 433.0 billion in 2021.   Of the top 10 as many as 5 are Chinese insurance companies, with by Ping An Insurance emerging the world's most valuable insurance brand, despite recording a 26 per cent drop in brand value. The US has two companies in the top 10, while France, Germany, and India have one each in the list. This has LIC becoming the only domestic insurer to rank in top 10 list strongest brands and top 10 most valuable insurance brands. At this valuation LIC could have commanded a market cap of USD 51.2 billion in 2021, marginally down from USD 53.71 billion in 2020 in dollar terms and in rupee terms it could be Rs 37.5 lakh crore in 2021 down 1.2 per cent from Rs 38.2 lakh crore in 2020. The agency forecasts that LIC's value will touch Rs 43.40 lakh crore or USD 59.21 billion by the end of 2022, and become a Rs 58.9-lakh crore or USD 78.63 billion behemoth by 2027. LIC has grown 151 percent since 2014 clipping at 14 percent annually. LIC percentage across all three pillars remains positive between 2020 and 2021 with a notably large growth of 11 per cent in brand performance measures. After four years of steady decline, the brand strength of LIC shot up by nearly 14 points between 2018 and 2021.   Source: The Economic Times  

One of the eminent industrialists of the country Alhaj Morshed Alam, MP has been elected Chairman of National Life Insurance Company Limited. He was elected the Chairman unanimously at the 259th board meeting of the company on Sunday. Alhaj Morshed Alam is the founder Chairman of Bengal Group of Industries and also the Director and Chairman of Mercantile Bank Limited. He was elected as a Member of Parliament from Noakhali-2 (Senbag-Sonaimuri) constituency in the 10th and 11th parliament elections. Besides, he is the Chairman of private television channel Rtv and also performing his responsibility as the Trustee of Peoples University of Bangladesh. He is also associated with bank, insurance, financial service, media, holdings, construction, hotel and resorts and export oriented businesses. Alhaj Morshed Alam devotes his works with social service, education, health and social development. He established Morshed Alam High School at Nateshwar in Noakhali. Besides, he is one of the benefactors of Motijheel Ideal School and College, Dhaka; Bajra High School of Noakhali and Kazi Nagar Madrasa. AH    

Prime Minister Sheikh Hasina urged insurance companies to use modern information communication technology for ensuring corruption free better services to the people alongside making the masses aware about the benefits of having insurance particularly in bad times. “It is urgently needed to render all the insurance related services including disposing of the insurance claim to the people through using modern information technology,” she said. The premier also stressed the need for making the insurance (industry) dependent on technology capitalizing the benefits of digital Bangladesh She was addressing a function as the chief guest marking the first ever observance of the “National Insurance Day” at Bangabandhu International Conference Centre (BICC) in the capital on Sunday. She said “The introduction of information technology will help reduce corruption and make easier the process of reaching the insurance services to the people.” In this context, the Prime Minister reminded the authorities concerned about launching of Bangabandhu Satellite-1, bringing all the unions across the country under broadband coverage and having available mobile phones in people’s hand. The premier urged the insurance companies to introduce the state-of-the-art technology Unified Messaging Platform (UMP) launched to protect the interest of the customers. She said the insurance companies will be brought under the automation system, adding that the system will be helpful for the development of the insurance sector alongside solving its problems. In this context, she added: “Introduction of the automation system in the insurance companies will help remove mistrust of the people on insurance while premium income of insurance companies and revenue income of the government will witness a growth.” The premier also handed over “Bima Padak” to five persons for their outstanding contribution to the insurance sectors. She earlier unveiled the covers of two books of the Bangladesh Insurance Development and Regulatory Authority (IDRA) titled “Bima Manual” and “Bima Nirdeshika”. A video documentary on the development of insurance sector was also screened on the occasion. Finance Minister AHM Mustafa Kamal presided over the function, while Senior Secretary of the Financial Institutions Division under the Ministry of Finance Md. Ashadul Islam and Chairman of Bangladesh Insurance Development and Regulatory Authority (IDRA) Shafiqur Rahman Patwary, spoke at the function. Bangladesh Insurance Association (BIA) President Sheikh Kabir Hossain, noted insurance personality Begum Faridur Nahar Laily and Bangladesh Insurance Forum (BIF) President BM Yusuf Ali also spoke. Describing the need of insurance in bad times, the premier asked the insurance companies to make the grassroots people aware about its benefit. She added: “Awareness regarding insurance in our country is indeed very low. Conduct a massive awareness campaign to let the people know the good side of the insurance.” Calling upon the companies to take the insurance concept to the masses, she said, “It will be easier to earn confidence and trust of the people at the villages as they are now very cautious.” She went on saying that the people who are using cars, in most of the cases they don’t have proper insurance and they carry a third party insurance paper. “But, they do not get anything when accidents occur,” she added. Referring to the fire incidents at jute godowns soon after the Liberation and several previous random fire incidents at garments factories, the Prime Minister said that some people at that time tried to take advantages of having insurance which came out through investigation. “You (insurance companies) have to send people for inspection with a background of having proper training and honesty,” she opined. Noting that the insurance industry can generate huge employment across the country, Sheikh Hasina asked the companies to appoint educated unemployed youths particularly females as agents of their organizations. “In this regard, all the insurance companies could work in unison,” she said. The premier said a directive has been issued to bring transparency in transactions in the insurance industry. The Prime Minister said the 1st March was declared as the “National Insurance Day” as on the day Father of the Nation Bangabandhu Sheikh Mujibur Rahman joined the then Alpha Insurance as regional chief of East Pakistan in 1960. She said Bangabandhu conducted his political activities throughout the country in the name of boosting its activities at the grassroots by taking the advantage of being an insurance employee. Considering the importance of insurance industry in the socio-economic development of the country, Sheikh Hasina said the present government has given due importance to modernization and development of this sector. “Our government has been trying to develop the insurance industry. We enacted new Insurance Act 2010 in place of age-old Insurance Act of 1938,” she said. The Prime Minister said the government has also established autonomous regulatory body, Insurance Development and Regulatory Authority (IDRA), dissolving the office of the chief controller of insurance and formulated “National Insurance Policy-2014”. “The IDRA has taken several effective steps to ensure inclusive insurance,” she added. Alongside the general insurance, she said her government has introduced insurance for the expatriate Bangladeshi workers with giving incentives from the public exchequer. Besides, Sheikh Hasina said, the Awami League government has taken initiatives to introduce agriculture insurance, health insurance, bhaban insurance and insurance of railway passengers. In this context she said, “We are going to introduce “education insurance” soon. A proposal has been made to introduce “Bangabandhu Education Insurance” and we are actively considering it.” Noting that the Bangabandhu government had issued “ Bangladesh Insurance (nationalization) Ordinance-1972″ for development of the insurance industry by giving due importance, she said, “Being an employee he knew what was required for the development of the sector.” Bangabandhu also formed four insurance corporations after the name of rivers, Surma, Rupsa, Teesta and Karnaphuli and formed “National Insurance Corporation” to control those, she mentioned. The premier said Bangabandhu later enacted “Insurance Corporation Act-1973 and formed Jiban Bima Corporation for life related insurance and Sadharan Bima Corporation for non-life insurance after breaking the four corporations and these two are now render insurance services to the masses. Realizing the importance of efficient workforce, she said that the Father of the Nation formed an autonomous body “Bangladesh Insurance Academy” for ensuring proper education and training to the insurance employees for overall development of the industry. Sheikh Hasina said Bangabandhu has given us the independence of the country, and our target is to transform Bangladesh into a prosperous and developed one as envisioned by him. Let’s work together to this end as we are going to celebrate the “Mujib Year” from 2020-2021 marking the birth centenary of Bangabandhu and the Golden Jubilee of independence,” She said. Source: BSS AH

Prime Minister and Leader of the House Sheikh Hasina told the Jatiya Sangsad that her government has a plan to introduce health insurance for ensuring healthcare services to all. “The present Awami League government has a plan to introduce health insurance for ensuring healthcare services to the countrymen,” she said while replying to a tabled question from a Jatiya Party lawmaker Md. Rustum Ali Faraji, from Pirojpur-3 constituency with Speaker Dr Shirin Sharmin Chaudhury in the chair on Wednesday. Reports BSS. As part of the plan, health insurance has already been introduced at Madhupur, Ghatail and Kalihati upazilas in Tangail on pilot basis to ensure healthcare services to the poor people of the localities, she said. Sheikh Hasina, also President of the ruling Awami League said her government has formulated Healthcare Financing Strategy 2012-2032 for ensuring universal healthcare services. In this context, she also said that the government has taken a pilot project SSK (Shasthyo Surokhsha Karmasuchi- Social Health Protection Scheme) in line with the strategy to give free healthcare services to the poor people for ensuring universal healthcare services. Under the SSK, the family members living under the poverty line at Kalihati, Ghatail and Madhupur upazilas of Tangail district have been imparting healthcare services free of cost for 78 admit-able diseases, the premier said, adding, “The SSK activities will be extended to all over the country once the pilot project is achieved a success.” The Prime Minister said that registration of 27,841 families in Kalihati, 27,232 families in Ghatail and 26,455 families in Madhupur of Tangail district has already been completed while 27, 841; 26,218 and 27,118 SSK cards have already been distributed among the poor people of Kalihati, Madhupur and Ghatail upazilas respectively to facilitate them with free healthcare services. In this context, she said the work of the automation of SSK has already been started, hoping that activities of the SSK automation will start this month. The government has a plan to bring the entire country under the health insurance coverage aimed at giving medicine and treatment to the people following recommendations of the pilot project regarding health insurance under the Health Economics unit, the premier said. A project titled “Social Health Insurance Project” for laborers of RMG and tea gardens with the assistance of KOIKA has already been prepared, she added. AH