Thursday, October 19, 2017

Bangladesh to appoint auditor to check spending of life insurers

The Insurance Development and Regulatory Authority (IDRA) of Bangladesh announced that it will appoint an auditor to assess the expenses of the country’s life insurers.

IRDA’s decision comes after it discovered that 28 of the country’s 31 life insurers breached their respective spending limits last year.

Currently, management expenses are capped at 97.5% of first-year premiums and 90% for insurers that have been in operation for 10 years.

No company is allowed to exceed these expenses in any calendar year.

IDRA chairman, Shefaque Ahmed, said that the regulator tried through moral persuasion to bring down the management expenses among the country’s insurance firms but failed.

This triggered IDRA to decide to hire an external auditor to examine the expenses of life insurers and take actions against violators.

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