Kathmandu: The Risk-based Supervision Framework (RBS) issued by the Nepal Insurance Authority has been adopted in Bangladesh as well. The most part of the guidelines on Framework issued by the Nepal Insurance Authority (NIA) matches with the guidelines on Framework issued by the Insurance Development and Regulation Authority (IDRA) of Bangladesh.
NIA had issued the Supervision Framework on 23 May 2023 while IDRA issued the same Supervision Framework in Bangladesh on 21 April 2024.
Now, question arises, who has drafted the RBS for both regulatory authorities. Can it be assumed that IDRA downloaded the Guidelines from NIA’s website and later renamed it for Bangladesh ? or the Donor’s(World Bank/Asian Development Bank) consultant suggested the same document for both regulator ?
The South Asian countries including Nepal, Sri Lanka, Bhutan, India, Pakistan and Bangladesh have implemented a RBS Framework with a conditional grant from the World Bank.
This Framework has been implemented based on the concept that the insurance regulator should make supervision based on risk rather than with traditional approach.
The World Bank, which has given a conditional grant under the financial sector empowerment, has provided technical assistance to the insurance sector of Nepal through NIA to implement the concept of Risk-based Capital. Bangladesh too has received grand from Asian Development Bank for the same purpose.
