S M Nuruzzaman is currently serving as the Chief Executive Officer of Zenith Islami Life Insurance Limited. He has served successfully and brilliantly in various important positions in Fareast Islami Life Insurance for a long time. He also served as DMD in Baira Life Insurance. Currently, he is the Acting Secretary General of Bangladesh Insurance Forum and the Executive Council member of Central Shariah Council for Islamic Insurance of Bangladesh. Recently he talked to Daily Post and shared his various important experiences. He said that Zenith Islami Life Insurance is showing the light of hope to the insurance sector which has become distrusted by the common people due to irregularities and mismanagement. The company's integrity and exceptional initiative have earned the trust of its customers. He also highlighted the activities of Zenith along with various aspects of the country's insurance sector. The interview was taken by Imran Khan, Correspondent of Daily post.
DP: Why is Zenith different than others and what is your business policy?
S M Nuruzzaman: Zenith Islami Life is working on health insurance for students. About 50,000 students of four universities including Jahangirnagar, Rajshahi University are under the health insurance program of Zenith Islami Life Insurance Company. Students do not have to struggle to get insurance claims. In order to get money very easily, students can get money within seven working days through digital means, i.e development, cash or bank account, by taking a photo of their insurance claiming documents and submitting them online.
Zenith Islami Life enables customers to pay their dues very quickly through ERP solutions for transparency and speed. We have made the website and apps in both Bengali and English versions for the benefit of the people and customers in the marginal areas of the village. Customers can deposit their desired premiums sitting at home in the digital system through their Master Card, Credit Card, Visa Card, Bkash, Cash, and Rocket or any mobile banking or bank transfer without any hassle. We have set up training department to train our employees and through this we are making them efficient.
DP: How many branches and customers Zenith has?
S M Nuruzzaman: Zenith currently has around 70 branches across the country with over 50,000 active customers. Our investment increased in 2022-23. We have paid 100% claims. We re-entered in the stock market in 2024. Earlier only our banking sector had FDR, Treasury bonds.
DP: Does Zenith participate in Bank assurance? Do you think the insurance sector will turn around through this?
S M Nuruzzaman: Zenith Islami Life Insurance has already participated in bank assurance. Zenith has about 20 products including Hajj Insurance, Debenture Policy, Pension Policy, and Child Insurance. And we hope that the insurance sector will turn around through this bank assurance. The crisis of confidence that has arisen among people in the insurance sector due to various reasons will be removed. When bank customers will tell and assure people about insurance then people will have no doubt about insurance. A good result will come at the end of the year.
DP: What is Zenith's current status?
S M Nuruzzaman: According to the latest estimates, Zenith Islami Life's management expenditure has decreased in the year ending 2023. On the other hand, the company's life insurance and investment amount increased. At the end of the year, the growth in Zenith's life fund stood at 102 percent, investment increased by 15 percent. And the management cost has decreased by 14 percent. A review of the final accounts shows that in 2023, Zenith Islami Life has collected a total premium of Tk 30 crore and 3 lakh. TK16 Crore 93 lakh has been spent in collecting this premium. That is, the company has spent 56.38 percent of the total premium on the management sector.
Earlier, the total premium collection of Zenith Islami Life in 2022 was Tk 30 crore 34 lakh. And the company spent Tk21 crore 47 lakh in collecting this premium. That means the company spent 70.76 percent of the total premium in the management sector that year. Accordingly, the management cost of Zenith Islami Life has decreased by 14.38 percent in 2023. However, Tk 2 crore 55 lakh has been spent more than the approved expenditure limit.
In 2023, among the total premiums collected by the insurance company, the first year premium is Tk 14 crore 61 lakh, the second year is Tk 5 crore 92 lakh and the third and above year premium is Tk 9 crore 50 lakh. Of this, the second year renewal collection rate of first year premium income increased by 6.79 percent. That is, the rate of premium Tamadi has decreased.
DP: Some companies not paying insurance claims on time. In this, people's confidence in insurance sector decreasing. How do you see it?
S M Nuruzzaman: Many companies are not paying insurance claims, so we are also unable to do business. Insurance Development and Regulatory Authority (IDRA) has to play a role in the crisis of people's confidence in insurance. The main reason for a company’s down is financial crime. In 2010, an investment regulation was made for this type of crime. But these regulations have not been fully implemented. However, new companies do not have the opportunity to commit this type of crime. Any new investment will require permission from IDRA.
The IDRA investment regulations state that 30% of the premium should be kept in treasury bonds, not in one bank but in multiple banks. The insurance sector is seeing a ray of hope due to this regulation. If this regulation is properly monitored by IDRA, there will be no crime.
DP: What is the future of insurance sector in Bangladesh?
S M Nuruzzaman: There is a lot of potential in the insurance sector in Bangladesh. If the government solves the insurance claims problem in the insurance sector of Bangladesh, especially IDRA, then 90% of the problems in the insurance sector will be solved. As a result, the insurance sector will be able to gain the trust of the common people.
If IDRA, Ministry of Finance, Prime Minister's Office works together as a committee for insurance company fraud, such problems can be solved.
DP: What are your initiatives to restore people's confidence in insurance sector?
S M Nuruzzaman: The main crisis in insurance is not paying the maturity money on time. Digitizing the company and making insurance claim payment system as per customer convenience i.e. mobile banking and sending money through bank account. Customers don't have to worry about claims; we give money as soon as the policy matures. Conducting various developmental meetings, seminars and making employees more efficient in providing services to bring back interest in the insurance sector.
DP: What are the challenges for insurance sector?
S M Nuruzzaman: The negative perception created among people due to non-payment of insurance claims on time will further become a barrier. Companies must be digitized. Technology should be used so that the customers themself understand everything. Negotiating insurance claims with customers. These issues, I see them as a challenge for the insurance sector.
DP: What is your personal assessment of the insurance sector?
S M Nuruzzaman: The insurance sector has a lot of potential in Bangladesh. 10 percent people of the country are covered by insurance and 90 percent people are out of insurance coverage. If we can utilize it, the insurance sector will move forward.
Insurance sector in Bangladesh has a lot of potential. Bangladesh's insurance sector will go a long way if there will good intention of insurance authority and sharp supervision of the government.
DP: Thank you on behalf of daily post for your valuable time and comments.
SM Nuruzzaman: Thank you too.
