Strengthening customer service and addressing harassment in insurance sector are IDRA's prime objectives
Insurance Development and Regulatory Authority (IDRA) has finally taken initiatives to address customer dissatisfaction in insurance sector through digitalization.
Also as part of implementation of National Insurance Policy-2014, the regulator has taken initiative to launch Unified Messaging Platform (UMP). Through this, under the supervision of IDRA, insurance customers will receive their premium information and payment confirmation on each transaction through SMS, a top IDRA official said.
This initiative will play an effective role in strengthening the financial base of insurance companies through ensuring better services, transparency in insurance management and accountability without incurring any setup and implementation cost for the planned systems.
IDRA says, as part of modernization and digitalization of insurance sector, the initiative of sending notification through SMS by central arrangement has been taken, where each insurance company gets separate UMP portal. Initially the policy information for each insurance company will be setup on a specific format, notifications on premium information will be delivered to the customers using the messaging system.
In this regard, IDRA has circulated an instruction to all insurance companies on January 28 after consulting top insurance officials.
IDRA member Dr M Mosharraf Hossain informed that through SMS every insurance customer will be informed about the premium collection. UMP will bring transparency in the insurance sector and ensure customer rights that will help establish confidence in the insurance industry.
He also mentioned that the insurers do not need to invest separately because of the central initiative rather they will get the service at 08 taka per quarter per policy.
To implement UMP by setting up software systems, servers, hardware, data center, database, data formatting, portals etc and perform related processes a professional third party has been engaged by IDRA.
Top officials concerned at IDRA said upon implementation of UMP, chances of harassment on part of the clients by the agents and companies with ill-motive will reduce significantly.
“As all the information of insurance industry will be kept at the central database of IDRA, the transparency and accountability of the companies will be raised to a higher extent. Besides, alert customers will not avail any service of the company or its agents without receiving any notification,” a senior IDRA official told the Dhaka Tribune.
Hailing this endeavor of IDRA, BM Yusuf Ali, president of Bangladesh Insurance Forum and managing director of Popular Life Insurance told the Dhaka Tribune that at present only few companies of our industry are providing the SMS notification to the clients on their own. If the same is forwarded by the regulator itself then the acceptability will increase by many folds.
In this way IDRA will also be able to keep track of the activities of all companies. The insurance industry will expand to a large extent if customers' trust can be increased through transparency and accountability from all quarters. Companies will generate more businesses as well if the same are implemented, he added.