Insurance sector needs tech-focused innovations to attract people: Experts

There is a need for technology-focused innovations in the insurance sector with a view to bringing back people's interest in insurance, experts say at a webinar.

The adoption of Insurtech, a new insurance technology that improves customer experience, simplifies policy management and increases competition, will help find possible interventions to redraw the insurance map in Bangladesh, they said at a virtual discussion on 23 June.

A2i Programme in association with Milvik Bangladesh Limited and The Business Standard organised the event titled "Emergences of Insurtech: How we are adapting and embracing it in Bangladesh".  Masud Rana, joint director at the Bangladesh Financial Intelligence Unit of the Bangladesh Bank, moderated the discussion.

While presenting a keynote paper, Md Quamrul Hasan, manager at Swisscontact Bangladesh, said the contribution of insurance premiums to the country's GDP is only 0.4%, while the same is 3%-4% in other developing countries and 8%-11% in developed countries.

Insurance penetration in Bangladesh has been decreasing since 2011, he also said.

The country should embrace Insurtech, which emerged towards the end of 2010 as a small endeavour in banking, he added.

By using technology such as data analysis and AI, Insurtech allows products to be priced more competitively.

Ankur Basu, country manager at Milvik (Bima BD), in his speech said the need for insurance is still not completely clear to people. The first task is to figure out how to let people know the importance of insurance using technology.

New insurance products should be introduced by highlighting their importance among the people. At the same time, there should also be various small user based insurance products for bus passengers, train passengers, farmers and others, he added.

Rahat Khan, chief commercial officer at MicroInspire Bangladesh, said, "Our biggest challenge is that we have no connection with the Insurance Development and Regulatory Authority." Awareness of customers is also needed, he added. 

Md Abu Mahmud, a representative from the IDRA, said, "We can benefit in many ways if Insurtech is launched. Our costs will go down significantly and insurance will easily be available to our people."

New customers will be attracted towards insurance if they come to know its importance. Therefore, new products have to be brought for them, he added.

Noting that the digital population is growing day by day in the country, he said, "Our insurance policy has not been implemented yet, which needs to be implemented and connected to the digital platform in our transactions."

Kazi Md Mortuza Ali, director general at Bangladesh Institute for Professional Development, and Md Moniruzzaman Khan of Green Delta Insurance and were also present as the panellists at the webinar.