In a clear violation of regulatory guidelines, 11 life and non-life insurance companies are currently operating without permanent chief executive officers (CEOs).

This contradicts the Insurance Act 2010, which states that if a CEO position remains vacant at an insurer for more than six months, an administrator must be appointed.

The companies are Guardian Life Insurance, Mercantile Islami Life Insurance, Sonali Life Insurance, Akij Takaful Life Insurance, Jamuna Life Insurance, Sunlife Insurance Company, Homeland Life Insurance, Swadesh Islami Life Insurance, Fareast Islami Life Insurance, Rupali Insurance and Continental Insurance.

The companies claim they are unable to find qualified candidates for the CEO position

A senior official of the Insurance Development and Regulatory Authority (Idra) told The Daily Star that these companies have been operating without permanent CEOs for one to three years.

The official added that the regulator has taken the initiative to address this issue.

The companies claim they are unable to find qualified candidates for the CEO position, the official said. So, they have been operating by extending the tenure of acting CEOs by paying fines or seeking more time from the authority, as authorised by the Idra.

The two non-life insurance companies without permanent CEOs, namely Continental and Rupali, have applied for the appointment of permanent CEOs and the documents are currently undergoing a verification process, the official added.

The Daily Star tried to contract at least two life insurers, including Guardian Life Insurance and Mercantile Islami Life Insurance, for comment, but neither responded.

Attempts were also made to contract Adeeba Rahman, first vice-president of the Bangladesh Insurance Association, an organisation representing the country's insurance company owners and chief executive officers. However, she also did not respond.

Md Solaiman, deputy director of the non-life department and spokesperson for Idra, told The Daily Star that attention should be paid to how the regulator has been conducting its activities since the political changeover on August 5 instead of considering how the regulator operated prior to that.

The decisions that Idra is currently making are aimed at advancing and regulating the industry, he added.

Md Main Uddin, a professor of the Department of Banking and Insurance at the University of Dhaka, said the lack of a permanent CEO implies that the owners do not wish for the company to operate efficiently.

Additionally, an acting CEO may lack commitment to their role, knowing that the position is not permanent, leading to demotivation, he said.

Therefore, Idra's latest circular will play a crucial role in resolving this issue, he added.

What do the guidelines say?

Under the guidelines, no one is allowed to use the CEO title at any insurance company without prior approval from the Idra. Moreover, no one can be appointed as CEO on a current charge basis without Idra's permission.

Until Idra approves the appointment of a CEO, an additional managing director may be assigned the responsibilities of the CEO and carry the title "CEO (in-charge)."

The insurance regulator issued a circular yesterday outlining these directives.

The circular also states that no officer below the rank of CEO or CEO (in-charge) will have the authority to sign any official correspondence sent to Idra.

The insurance watchdog made these decisions after observing that many insurers, particularly life insurance companies, have been operating for years under acting CEOs instead of appointing permanent ones, an Idra official told The Daily Star on condition of anonymity.

Bangladesh has 82 insurance companies -- 36 in the life insurance sector and 46 in the non-life sector.