Kathmandu. The Bangladesh insurance regulator has issued a directive not to use the title of Chief Executive Officer (CEO) by any employee of an insurance company without prior approval. After high-ranking employees of some life and non-life insurance companies started using the title of CEO arbitrarily, the insurance regulator, Insurance Development and Regulatory Authority, has issued such a directive in writing to all life and non-life insurance companies.
According to the online version of Pratham Alo, the authority’s letter states that no one can be appointed as the Chief Executive Officer (current responsibility) in any insurance company. As a result, no one will be allowed to use the title of Chief Executive Officer (Current Responsibilities) in any company.
Until the proposal for the appointment of the Chief Executive Officer is approved by the Authority, a Deputy Chief Executive Officer may be assigned the responsibility of the Chief Executive Officer in accordance with the relevant provisions. Such designated officer can only use the title of Acting Chief Executive Officer. The circular also states that officers below the Chief Executive Officer or the Acting Chief Executive Officer will not be allowed to even communicate with the Authority.
In 2020, the Authority had also stated in a directive that, as per the Insurance Act, the proposal for the appointment of a person proposed by the board of directors of a company or the proposal for the renewal of the appointment after the termination of the contract must be approved by the regulator. He will not be eligible for regular duties as Chief Executive Officer, including salary and other benefits, unless approved by the Authority.
The approved post of the Authority is Chief Executive Officer. The title of Managing Director can be used in the government-owned Life Insurance Corporation and Non-Life Insurance Corporation, but the title of Chief Executive Officer must be used in all other insurance companies.
There are 82 licensed insurance companies operating in Bangladesh. Of these, 36 are life insurance and 46 are non-life insurance. The contribution of the insurance sector to the GDP of Bangladesh is the lowest in South Asia, at only 0.46 percent. In India, it is 4.2 percent and in Pakistan, it is 0.91 percent. According to the regulator, about 171 million people are currently covered by insurance in Bangladesh.
