Bangladesh: Govt secures World Bank loan to strengthen insurance
Source: Asia Insurance Review | Mar 2017
The Bangladeshi government will soon sign a US$65 million loan agreement with the World Bank to increase insurance coverage, enhance consumer protection and improve the efficiency of the insurance market.
Implementation of the programme, titled “Bangladesh Insurance Sector Development Project”, is expected to begin this month and be completed in February 2023, reported The Financial Express. The Finance Minister has already approved the draft Development Project Proposal.
The proposed components of the project are: improving the capacity of the Insurance Development and Regulatory Authority (IDRA) and Bangladesh Insurance Academy (BIA), and modernisation, strengthening and increasing the efficiency of state-owned insurance corporations.
The project’s total budget will be $80 million, with the International Development Association providing a loan of $65 million and the government contributing $15 million. Under the project proposal, $45 million is set aside to improve the capacity of state-owned insurance companies while $30 million will be spent on the modernisation of BIA and IDRA, and $5 million on implementation and monitoring purposes.