Conducting unbiased and fair audits in the insurance companies can help take the sector to the next level.
This practice can also ensure better customer service.
A transparent audit report is the reflection of an organisation on which the trading of insurance companies' shares, at the stock market, depends. It also shapes foreign investment and customer demand.
The insurance sector can play a greater part in the country's gross domestic product (GDP) if the companies are managed following the law. So the auditors need to work more seriously and transparently.
The insurance stakeholders and seasoned auditors of the country said this on Saturday at the Institute of Chartered Accountants of Bangladesh (ICAB) organised online conference: "Role of auditors in ensuring good governance in insurance industry."
ICAB President Muhammad Farooq FCA presided over the programme while Financial Institutions Division Senior Secretary Md Ashadul Islam was the chief guest.
Dr M Mosharraf Hossain FCA, acting chairman of the Insurance Development and Regulatory Authority, delivered the keynote speech at the programme.
Mosharraf Hossain said 78 insurance companies are now operating in Bangladesh. Of them, 32 are life insurance companies and 46 are non-life companies.
Life insurance companies have failed to gain the full confidence of the people. There are allegations that these companies give an extra commission to the agents.
Bangladesh Insurance Association President Sheikh Kabir Hossain said at the programme the auditors can help make these companies better. If they conduct an audit ignoring unethical requests and influences, and give a transparent report, then the company will be able to play a better role in the economy of Bangladesh.
Placing more importance on the automation system for insurance management Sheikh Kabir said all insurance companies will have to be brought under 100% automation. "The insurance stakeholders and the government have to play a leading role here."
Life insurance brings earning of Tk9,000-10,000 crore every year from first and renewal premiums, and non-life insurance a premium of Tk3,000-4,000 crore.
The value of insurance asset in Bangladesh is now a little over Tk52,000 crore. Of this, the life insurance companies own Tk40.50 thousand crore and non-life ones Tk11.50 thousand crore.
In the fiscal year 2018-19, Bangladesh's GDP growth rose to 8.13% and gross national income (GNI) reached $1,909. Compared to that development the size of the country's insurance market is not significant.