Professionalism In Insurance Industries
Mir Nazim Uddin Ahmed12 November 2020
On March 26, 1986, I entered the insurance industry through Pragati Insurance Company. After 28 years of working in various departments of insurance, I have been working as the Managing Director and CEO of Islami Commercial Insurance Company Ltd since September 1, 2013.
In my view, the most important thing in the insurance profession is honesty, perseverance, patience, pursuit and concentration. Respect for the profession, education, interest in learning and working for success. Present yourself and your profession beautifully and comfortably to others.
Insurance business does not happen overnight to make profit. People usually do not like a profession of "trial and error". Everyone wants a secure life, a fixed salary at the end of the month for a sound sleep at night. Everybody wants a comfortable life without a target. But in insurance industry, one may lose sleep to reach the target. So someone may not succeed in this profession without patience.
There is a lot of negativity about insurance in our country. Because the number of educated people in insurance industry is relatively low. The business of non-life insurance runs on references, runs on the blessings of any industrialist groups and the wishes of bank officials. That's why there is so much negative talk about insurance if you can't give them their desired benefits.
The rate of Fire and RSD premium given by the Tariff Amendment Committee for the garment factory inadvertently in revising the fire tariff of the garments has been adversely affected by the market as the current rate is higher than the previous rate. The decision to reduce the premium rate similar to the rates abroad in order to please the special business community has not been logical. Following foreign ideologies is not always fruitful for the industry, local norms and regulations must also be kept in mind while taking such decisions. If the experts of the tariff Amendment Committee had considered the benefit of insurance industry of the country, the premium income of the insurance industry would not have been less than Tk. 1 (one) thousand crore from this year due to the tariff amendment. They are not doing their duties properly.
Even then, some companies are taking advantage of the premium undercut (bringing premium rates from abroad) gives the benefit to the businessman on the other hand they are gaining and the government is being deprived of taxes and vat. And because of this, negative perceptions about insurance are being created in the market.
Even after the tariff amendment, under the pressure of special business community, the insurance companies are ignoring the instructions of the insurance development and regulatory authority and giving the agent commission to the insured. This is the reality of the current market situation. The tariff has been amended to close the commission which proves that this time as in the past, a big mistake was made.
In this situation, considering of those problems we are the non-life insurance professional is suffering. It has become almost impossible to earn a decent income after pleasing bankers and businessmen. Children's education, family expenses, medical costs and the impact of the coronavirus pandemic has left everything in as stage of disarray. Everyone is trying to take over each other's businesses to make a living, but nothing has changed since the BIA's directive. Everyone seems to be engaged in an illegal competition. The names of some companies are coming that are trying to control the insurance companies from the management of BIA are also heard in the market.
It is necessary to consider whether it is possible to control the market by forming a committee consisting of those people who have destabilized the insurance market even after so many instructions given by IDRA and BIA for controlling the market. When I was young, I had to hire a thief to catch a thief. Today that seems to be true.
In today's world, education, hard work, talent, skills, technology, experience and transparency, etc., keep the wheel of the economy spinning. There is no opportunity to spoon feed anyone in the insurance business. Everyone has to prove themselves in their respective fields through the hard work. The insurance industry will move forward through the collective effort of everyone involved in the sector.
The father of the nation of Bangladesh Bangabandhu Sheikh Mujibur Rahman was a man of insurance profession. The Hon'ble Prime Minister is also a member of Bima family. On March 1, 2020, the first ever Insurance Day celebrated in our country, she expressed her desires to join the insurance industry in her spare time. Our Finance Minister is also a wise and prudent person in accounting and business who has knowledge of insurance from an early age and has been directly involved in the insurance business till adulthood. We need his support and cooperation today.
On the birth centenary of Father of the Nation Bangabandhu, I express my desire that insurance professionals of this country will get the recognition they deserve, just like the insurance professionals in other countries and I believe the current authorities will bring back the glory days back to this noble profession.
(Mr. Nazim Uddin is Managing Director and CEO, Islami Commercial Insurance Co. Ltd).