The experts have called upon the government, development partners and private sector to create an enabling environment for inclusive insurance and risk financing, ensuring sustainable development for the country and leaving no one behind.
“Validation workshop on Country Diagnostic on Inclusive Insurance and Risk Finance for Bangladesh,” was organised Thursday by the Financial Institutions Division (FID), Ministry of Finance (MoF), Insurance Development and Regulatory Authority (IDRA), and the United Nations Development Programme (UNDP).
“The protection of people and assets is a key component of sustainable development and Insurance is the protection. Without insurance, achieving sustainable development will never be possible,” IDRA Chairman Mohammad Jainul Bari said. He continued that the COVID-19 pandemic was an eye-opener on the need for expanding access to insurance for the underserved population to protect vulnerable communities from disasters.
‘To mitigate the risk and bring sustainability, everyone must need to have basic knowledge of inclusive insurance and how it helps in risk financing and the overall economy of Bangladesh,” he added. Bangladesh Insurance Association President Sheikh Kabir Hossain said: “We have to run awareness campaigns to build the trust of the people by making them more aware about insurance leading to their inclusion in the safety net.”
“Building, retaining and supporting progress amongst a diverse workforce will only be sustainable if all members share the same outlook and have transparency. So, government and private stakeholders need to have the same outlook about mitigating risks and bringing everyone under insurance coverage for a much safer environment in Bangladesh. BIA will play a vital role and act as a bridge among the stakeholders,” Hossain said. “The findings and recommendations of the country diagnostic have provided us a clear direction for creating an enabling environment for mainstreaming inclusive insurance and risk financing in the country,” UNDP Deputy Resident Representative Van Nguyen said.
Pointing out that UNDP’s work with the government has been rewarding, Van continued, “We are committed to continuing our support to strengthen the legislative frameworks, institutional capacity and insurance industry for enhancing the resilience of the most vulnerable communities and achieving Sustainable Development Goals (SDGs) in Bangladesh.” Bangladesh is vulnerable to climate change due to its low-lying delta ecosystem that exposes the country to several disasters such as flash floods, monsoon floods, cyclones, storm surges, salinity intrusion, drought and unpredictable rainfall.
The government is keen to explore the insurance industry to consider it as a risk transfer mechanism. UNDP has conducted a country diagnostic that has assessed the risks and vulnerability in Bangladesh, considering the existing enabling environment and financial instruments. The diagnostic study has highlighted challenges, opportunities, and areas where UNDP can, together with partners, provide the necessary support for the government and private stakeholders to improve the enabling environment for inclusive insurance and risk financing.
