Insurance Business In Bangladesh

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1.1 An overview about Insurance business in Bangladesh

Insurance is a mechanism of transferring risk. Insurance should be treated as a basic human need in terms of wide range of human activities and situations. The insurance industry of Bangladesh now consists of 44 General Insurance Companies (non-life) including state owned SadharanBima Corporation and 18 Life Insurance Companies including state owned Jiban Bima Corporation. The sector is playing a vital role in the economy of the country.

1.1.2 Information System of Insurance Business

The insurance business accounting information system must not only aid the insurance companies in achieving its basic objective but also incorporate those features necessary to comply with regulatory …show more content…

Management Information requirements: Insurance business management needs a variety of reports and information for both external and internal purposes. Financial statements are often required by stockholders, the SEC and other regulatory agencies.
For internal purpose, management needs a variety of reports should include a variety of information reports on marketing activity, underwriting activity, re-insurance activity, claim activity and financial activities.
1.1.2.4. Accounting controls: Many aspects of insurance accounting are unique. Almost every piece of paper utilized by insurance company becomes a sources document for the accounting entry. Such papers include Money Receipts, checks, deposit slips, debit and credit vouchers. Insurance company process hundreds of source documents each day. As consequence, it is imperative that insurance companies make posting their books each day. Assets of insurance companies including cheques, cash.
One of the most important accounting controls is the safeguarding of these assets. Primary objectives of insurance company’s internal control should be to promote dual control over such cash and cash equivalent assets and to fix responsibilities for recording transactions and maintaining …show more content…

As a result, insurance information is very much important for the economy. To provide relevant information in time the insurance sector should have a unified accounting information system. Effective AIS is essential for data collection, data management, data maintenance, and data control and information generation of the insurance business. But the information handing units of the insurance business have not been properly organized. Rules and procedures have not been properly developed to guide information handling departments. In this situation this thesis try to find out the original picture of the overall AIS of insurance business of

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