Bangladesh: 31 insurance companies must list on the bourse by 31 Dec
Source: Asia Insurance Review | Dec 2019
Thirty one insurance companies in Bangladesh have so far shown no eagerness in obtaining a listing on the local bourse, despite orders from the Finance Minister AHM Mustafa Kamal.
The Insurance Development and Regulatory Authority (IDRA) and Bangladesh Securities and Exchange Commission (BSEC) have so far not seen any signs that this group of insurers are preparing for public listings, reported Industry Daily. The finance minister directed the unlisted companies to implement the order by 31 December with a view to developing the capital market.
An IDRA official said that a meeting had been held with the unlisted insurance companies to know about their progress in getting a stock market listing. However, it appeared that the insurers were willing to pay a fine instead of listing their shares. It is uncertain whether the IDRA would revoke their licences if they continued to flout the rules. It is understood though that a number of insurers are unable to settle claims due to liquidity problems.
According to IDRA, there are 78 insurance companies in the country including 32 life insurance and 46 non-life companies. A