CONQUERING THE MAN’S WORLD
Will you please tell us a little bit about yourself and your tenure in Prime Insurance Ltd.?
I graduated from Dhaka University with both honors and masters in Economics, then I joined as a Research Executive in BIDS (Bangladesh Institute of Development Studies). After 3 years I shifted my career to the Insurance Sector. I developed my career through professional degrees such as ABIA diploma (Associates of Bangladesh Insurance Academy) and various training at home as well as abroad in places like UK, Sri Lanka and India.
I joined as Trainee Executive at People’s Insurance Company in 1988 then switched to Green Delta Insurance where I successfully worked in a top position at different departments like Underwriting, Branch Control and Claims department.
My tenure in Prime Insurance Ltd. is over 7 years. I joined in 2011 as Addl. MD and gradually started bringing in business for the company, I have changed the total structure of Prime with support and liberty from the Board and finally, after three 3 Years Honorable Board made me MD & CEO of Prime.
As CEO, I am running on my second and third-year term. Prime has developed significantly both in earning business and glory. Being a second generation company, Prime has earned prestigious awards like being the winner in SAFA, BPA award for the first position at ICAB award, Silver award from ICSB for Corporate Governance and also for innovative products in Emerging Asia Insurance award from Thailand. I am a trainer in Bangladesh Insurance Association and various Government and Private Banks,the Executive member of the Executive council of Bangladesh Insurance Forum and CRC rating Committee of IDRA.
There are several insurance companies providing a wide range of services in Bangladesh now. How does Prime Insurance stay ahead of the competitors?
The market size of premium income is not big in Bangladesh but we have a concentration of 46 general insurance companies in the market with a Tk 2,500 Crore premium income so it is very tough, thereby fostering unhealthy commission practice.
At Prime we always strive to uphold ethics by exercising diversification while doing business. Last we experienced 25% growth and we gave 15% cash dividend to the shareholders. But this year has been slightly difficult when considering the economic situation with bank interest levels of 6% while the share market is performing poorly. Earning from the premium income profit is not lucrative because we are ceding proper reinsurance and we also have our management expenses. We can’t take remarkable profit from the premium income; we have to invest the money to other resources like investment, Treasury bond, FDR etc.
Health insurance is not widely used in Bangladesh when compared to its neighbouring nations of India. What is the cause behind this? How can we solve this problem?
I think the major reason for this scenario is the lack of awareness. It is difficult for us to take necessary awareness measures to increase business including health insurance, therefore the government should step in. Every month government can introduce an insurance program on BTV channel and private channels should also come up with an insurance program.
We are doing multiple awareness programs including focusing on health insurance to change the negative idea about insurance sector through various seminars, workshops, talk show and we have also published several types of insurance guidebook and health guidebook. In the general insurance sector, we are the pioneer of health insurance policy for clients. This has been running for 4 years and now we have many corporate clients. As per rule of the Authority Life Insurance, companies cannot provide hospitalization cover separately. They will give the hospitalization cover combined with life insurance. We can provide hospitalization cover because we are a non-life company so we extend our help during sudden sickness, illness or accident.
In my career this is the 29th year, so 4 years back I launched this health insurance product where there is no deduction except room rent and ICU facilities. We build up this health insurance coverage with critical illness cover, abroad treatment facilities and also maternity cover. For corporate clients, at least 10 members are required to issue the policy. This is a great policy and our clients are extremely satisfied with our service.
There are a lot of myths regarding the insurance industry including the payments of premium and insurance payments. What can be done to educate customers about your service?
As per rule of IDRA, the policy will be issued after receiving the payment. Prime has strictly maintained the payment method.
First of all, our website is informative and potential clients can get the required information on our products. We arrange in-house training program not to just for our staff but also our clients. We have published multiple product brochures as part of our CSR activity. I have arranged an awareness program for bankers only. Recently I went to EBL and spoke to the bank executives and gave a presentation on how to make the insurance coverage against their bank loan while maintaining financial security. It is very essential for bankers to take 100 percent insurance coverage for the properties of the customers otherwise at the time of claim settlement, claim will be settled by the insurer proportionately.
Prime Insurance Ltd. always creates products based on the market need, which is why we have introduced so many innovative products such as Hajj & Omrah Policy, Shipbuilders liability Coverage, Health Insurance and Bankers Blanket Bond Coverage, which includes Cyber Crime and Directors and Employers Liability Coverage.
You work in a traditionally male dominated industry. How has your experience been as the only female CEO leading an insurance company in Bangladesh? What would you like to say to other women who are also hoping to climb up the ladder?
It is a fact that I had to struggle in every single aspect, even in my service life navigating this male dominated corporate world. However, with professional competency, clear knowledge of your business and having solutions which meet client and organization needs, no gender matter will arise. Because if you are professionally qualified and your confidence level is high then you can answer any question, so gender doesn’t factor in.
Girls are doing better nowadays given the wide scope for education. We should ensure safety measures for their movement and sustainability in the workplace. In Prime Insurance we have 16% female employee and I am trying to build this up. I think in Bangladesh, Day Care centers are very essential for the working women. This is also an opportunity for women entrepreneurs to set up good day-care centers so that every woman can have both – a career and their children taken care off. Any woman anywhere can do better in their field by working hard and staying sincere and dedicated.
What is the greatest challenge facing the insurance industry at present? How do you see it changing in the next few years? Where does Prime Insurance fit in the evolving landscape?
The greatest challenge is that we have too many insurers in a small market, unethical practices are leading to huge amounts of rebating, credit business and undercut premium rate. Also, there is the use of premium rate without any basis which is neither as per tariff nor obtained from abroad or not taking permission from the Central Rating Committee.
IDRA and the Bangladesh Insurance Association have changed a lot in the insurance industry in respect of our registration and license fee which has been brought to 1%. Even our Ministry of Finance played an important role as they withdrew 15% VAT on agency commission which had been a burden of all the insurers.
Life insurance companies may have some problems with their agent, but non-life companies do not have a physical agent, and are doing business on their own or through marketing persons. Claim settlements are easier in non-life insurance companies than compared to life insurance companies, especially if the underwriting is done thoroughly and properly. Also if any dispute arises in non-life insurance companies, then both sides are heard and then the claim is settled. The Insurance Rules of 1958 in the insurance industry are outdated and IDRA is reforming that. The allowable expenses have also gotten better. Next few years I can see that insurance companies will do well and contribute to the GDP growth considerably.
Bangladesh has experienced unprecedented growth in the last few years. As an industry leader, where do you see the country progressing? What would you request the newly elected government to focus on from the year 2019 onwards?
Bangladesh has been achieving high growth in almost all the sectors because of stable government, and for maintaining continual economic and business environment in the face of limited human resources. However, we have huge unemployment of our young resources, which has now doubled. We should take steps to attract foreign investment to create employment opportunities for young resources. Bangladesh needs to attract foreign investment in the RMG sector to regain its lost position in the US market.
I expect the newly elected government to take these measures to maintain stability of the government even compromising party interest to maintain law and order, while taking adequate measures to reduce unemployment. Continue fulfilling the 17 SDG, while maintaining smooth infrastructure facility like roads and highways, and develop a traffic control system. Restore positive relation with business investors, while not compromising to restore national interest. Restate good relations among the IDRA, BIA and Ministry of Finance to create an ethical and transparent business environment in view of wholesome contribution to GDP. IDRA should opt for integrated software system which will help the industry with transparency and maintaining good market behavior.
