Insurance laws are not being implemented in Bangladesh because related regulations have yet to be formulated to give effect to the legislation, according to Mr Shafiqur Rahman Patwari, Chairman of the Insurance Development and Regulatory Authority (IDRA).
Speaking at a roundtable on workforce challenges in the insurance sector, he said that while IDRA was established in 2011, its office is being run wholly by temporary employees, says a report by The Daily Star.
State Minister for Finance MA Mannan said coordination was missing among the government, insurers, and clients.
Professor Shibli Rubayat Ul Islam, of the University of Dhaka, said that the insurance sector has failed to keep up with the pace of the country's overall economic growth. He said all the economic indicators, be they GDP, exports or imports, are growing steadily. So, insurance has immense potential to grow but this would depend on the insurance industry.
Ms Farzana Chowdhury, MD and CEO of Green Delta Insurance, said that insurers are not adequately aware of the need to develop talent. It is a company's responsibility to take the initiative for skills development of its staff, she said.
Entry-level salaries in the insurance sector are almost 50% lower than those of other sectors such as banking. As a result, the new generation is not that much interested in this industry, she said.
In addition, the lack of governance and unhealthy practices in the insurance sector have created an 'uncomfortable' atmosphere, discouraging young talent from seeking jobs in the sector, she said.