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Jul 2020

Bangladesh: Insurers see reinsurance claim payment delays

Source: Asia Insurance Review | Oct 2018

Twenty-one general insurance companies have reinsurance claims worth BDT3,644.7m ($43.7m) pending with state-run Sadharan Bima Corporation (SBC) as of March, which left them with a shortage of funds needed to pay their clients.
Among the insurers, Islami Commercial Insurance had the highest amount, BDT653.3m of reinsurance claims pending with SBC, reported Daily Star citing data from the Insurance Development and Regulatory Authority.
“Slow processing has caused the delay in the payment in some cases,” said Mr Syed Shahriyar Ahsan, managing director of SBC. But, he said, SBC alone is not responsible for the delay, as there is a lack of proper documentation on the part of the insurance companies. “We are trying to speed up the claim settlement process,” he added.
There are some systemic problems in the government owned SBC which have caused the delay in the reinsurance claim settlement, said Ms Farzana Chowdhury, managing director of Green Delta Insurance.
Insurers are mandated to reinsure 50% with SBC. Of the 46 insurance companies in Bangladesh, however, only nine have reinsured with foreign reinsurers. A 
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