Tech upgrade needed to restore trust in insurance sector, say experts
Staff Reporter
Experts in Bangladesh’s insurance industry have stressed the need for technological advancement to restore customer confidence in the sector. They pointed out that inconsistency often arise between policy information submitted by insurance companies to the regulator and the data uploaded to software systems. According to them, if companies adopt better technology, such inconsistencies will be reduced, thereby increasing public trust.
The observations came on Wednesday during a day-long training workshop titled “Use of Technology in Modernizing the Insurance Sector” held at the Shakti Training and Research Centre in Savar. The event was organised by the Insurance Reporters Forum (IRF), an association of journalists covering the insurance industry.
Former CEO of Chartered Life Insurance Company, S M Ziaul Haque, attended the workshop as a trainer, while Shahnewaz Durjoy represented Duar Services PLC. The workshop was presided over by IRF President Gazi Anowar.
Speakers at the workshop noted that while the banking sector is technologically advanced — allowing Bangladesh Bank to immediately detect irregularities — the insurance sector is yet to reach that stage. As a result, when insurers fail to settle customer claims, regulators cannot take swift action. Although the Insurance Development and Regulatory Authority (IDRA) has been working to integrate insurers into a centralised system, a lack of cooperation from some companies has hindered the process.
They said that with improved technology, customers would receive instant confirmation when premiums are paid. This would not only boost public confidence but also bring discipline to the industry.
Representatives from Duar Services said they are implementing a centralised Insurance Information Management System (IIMS) with 10 integrated digital systems to improve customer service and overall standards in the sector. Similar to global practices, a central policy depository is being developed to store all insurance policy data and monitor whether claims are being settled on time.
They added that IIMS implementation is pushing many insurers to strengthen their internal IT infrastructure. Duar’s initiatives also include a customer premium payment information app, a centralised e-KYC system for quick policy on boarding, and an e-receipt system to replace printed paper receipts.
