Minister for Commerce Altaf Hossain Chowdhury urged the insurance companies to comply with legal obligations such as going for Initial Public Offering (IPO) to make their activities transparent, reports UNB.
Altaf Hossain Chowdhury made the appeal while he was speaking at the 20th founding anniversary of Pragati Insurance Limited at the Bangladesh-China Friendship Conference Centre in the city Monday.
He said: "Many companies have failed to go for IPO, a mandatory legal obligation, due to their weak financial position."
He said that the government is actively contemplating to develop the administrative and legal framework of the insurance sector.
"Steps have already been taken to update the age-old insurance act of 1938 and the relevant insurance rules. The committee formed for this purpose has already submitted its report to the government, which is being examined for early implementation," Altaf said.
The minister hoped that the new act would be able to operate the insurance sector in a more congenial manner and the sector would feel more secure.
About 60 insurance companies are operating in the private sector in the country, including those offering Islamic Insurance based on Sharia.
Speakers at the function emphasised that the companies should also comply with the financial sector discipline to contribute to the economic growth like banking sector, and stressed the need for restructuring the companies as per international standard.
Adviser to the Ministry of Commerce Barkat Ullah Bulu, Pragati Insurance Ltd Chairman Khalilur Rahman, Vice Chairman ASM Mainuddin Monem and Managing Director AKM Rafiqul Islam also spoke on the occasion.