Kathmandu. The Insurance Development and Regulatory Authority of Bangladesh (IDRA) is to take policy initiatives to address the actuarial crisis in the insurance sector.
According to a press release issued by IDRA, an actuarial body, an actuarial standards setting board and an actuarial council will be constituted.
The draft of the Actuarial Ordinance 2025 has already been prepared. Opinions are sought. If the Department of Financial Institutions (FID) of the Ministry of Finance approves this, the three institutions will start functioning under this new framework.
IDRA President Dr. M. Aslam Alam said, “There is no substitute for skilled actuaries for sustainable development in the insurance sector. This profession provides a strong foundation for risk management not only in the insurance sector but in the entire financial sector. “
Actuarial science is a specialized field that uses mathematical, statistical, and economic models to measure future financial risks and uncertainties. It is widely used in the insurance industry, retirement funds, and financial institutions.
Actuaries mathematically determine the risk of future events through probability analysis, which provides a scientific basis for designing new insurance products, determining premiums, and resolving claims.
Currently, there are only four to five actuaries in Bangladesh. Of them, two are working in Bangladesh while the rest are working abroad.
Bangladeshi actuary Afreen Haque said that initiatives should be taken to create awareness about actuaries at school and college level. Parents only value the profession of doctors and engineers, as a result, awareness about the actuarial profession has not been created.
According to the current Insurance Act 2010, the appointment of an actuary is mandatory in the life insurance sector, but it is not mandatory for non-life insurance companies.
