Bangladesh: Two companies may receive insurance licences
Source: Asia Insurance Review | Feb 2019
The Bangladesh government is set to hand out licences for new insurance companies even though many recently established insurers are yet to find a toehold in the industry despite five years of operation.
The Insurance Development and Regulatory Authority (IDRA) gave the no-objection certificate to NRB Islamic Life Insurance to register with the Registrar of Joint Stock Companies, the green light to the sponsor to go ahead and apply for a full licence. Another company, Beach Land Life Insurance, is also in the process of getting a licence, reported The Daily Star.
The proposed NRB Islamic Life Insurance chairman GM Kibria said that the sponsors had applied for the licence in 2013, when licences for insurance companies were last awarded. At the time, the government gave licences to 16 insurers, but NRB Islamic Life Insurance failed to make the grade.
IDRA member Gokul Chand Das said the company was given the no-objection for registration purpose only and this does not guarantee any licence. Currently, 78 insurance companies operate in the Bangladesh market.
Bangladesh Insurance Forum president BM Yousuf Ali said that the government should take measures to ensure that existing insurers can survive before awarding new licences. The 16 insurers licensed in 2013 were supposed to be listed on the stock market within three years of starting operations but none has done so on account of weak financial health. A