Bangladesh Insurance Market is in an Upward Trend Despite the Low Penetration Rate
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The Economy of Bangladesh has rapidly been shifting from agricultural to services sector. The role so played by the service sector is burgeoning as well. Insurance being one of the ingredients of the financial services industry has a lot to play. In this comprehensive and ultimate guide on the insurance sector of Bangladesh. In spite of the stable growth rate (around 10%) of the Bangladesh insurance industry in the last few years, the expansion of the insurance business, particularly the non-life sector, has experienced a down-ward trend in the year 2014 because of poor investment and slowdown of economic activities led by the political unrest. The experts have the fear of that the industry was likely to have the similar experience in 2015. According to Bangladesh Insurance Association (BIA), the In the year 2014, the 45 non-life insurance companies earned gross premiums worth BDT 22.27 billion and the corresponding figures was BDT 21.03 billion in 2013. The present condition of the insurance market may continue in consequence of the slow investment activity in the country. In the country the marine insurance is a life guard for the non-life business and this completely depends on imports which has continuously being disturbed by the political unrest in Bangladesh but the market can improve in future. (FDI: Foreign Direct Investment) MetLife (ALICO) is the only foreign insurance operator in Bangladesh. ALICO has earned the record breaking gross premium in the life insurance sector. In April 2015, the regulator has approved another two joint venture life insurance companies in Bangladesh. The new companies are Taiyo Summit Life Insurance Company, a joint venture with local summit group and another one -Life insurance Corporation of INDIA. But there is still huge opportunities for overseas insurers in Bangladesh market.
Transcript of Bangladesh Insurance Market is in an Upward Trend Despite the Low Penetration Rate
The Economy of Bangladesh has rapidly been shifting from agricultural to services sector. The role so played by the service sector is burgeoning as well. Insurance being one of the ingredients of the financial services industry has a lot to play. In this comprehensive and ultimate guide on the insurance sector of Bangladesh.
In spite of the stable growth rate (around 10%) of the Bangladesh insurance industry in the last few years, the expansion of the insurance business, particularly the non-life sector, has experienced a down-ward trend in the year 2014 because of poor investment and slowdown of economic activities led by the political unrest. The experts have the fear of that the industry was likely to have the similar experience in 2015.
According to Bangladesh Insurance Association (BIA), the In the year 2014, the 45 non-life insurance companies earned gross premiums worth BDT 22.27 billion and the corresponding figures was BDT 21.03 billion in 2013. The present condition of the insurance market may continue in consequence of the slow investment activity in the country. In the country the marine insurance is a life guard for the non-life business and this completely depends on imports which has continuously being disturbed by the political unrest in Bangladesh but the market can improve in future.
(FDI: Foreign Direct Investment)
MetLife (ALICO) is the only foreign insurance operator in Bangladesh. ALICO has earned the record breaking gross premium in the life insurance sector. In April 2015, the regulator has approved another two joint venture life insurance companies in Bangladesh.
The new companies are Taiyo Summit Life Insurance Company, a joint venture with local summit group and another one -Life insurance Corporation of INDIA. But there is still huge opportunities for overseas insurers in Bangladesh market.
With the advent of two newly established companies in 2015, the number of foreign insurers will reach at three who are supposed to make use of their international experiences to local policyholders. Resultantly the existing insurers will leave no stone unturned to retain their market share through innovation and professionalism.
The Tariff
Bangladesh is a Tariff Market for Fire Marine Cargo and Hull, Motor, Personal Accident Money Insurance, Workmen’s Compensation business are subject to Tariff.
Insurers of Bangladesh are bound by Tariff regulations. On the other hand; Engineering Insurances are so far a non-tariff business
