Bangladesh's life insurance market is likely to grow to US$1.5 billion in the next three to four years, driven mostly by a growing economy, a senior MetLife executive has said.
"Currently, Bangladesh's life insurance market is around $1.0 billion a year and we expect it will expand at least 50% by around 2020," Mr Chris Townsend, the US-based insurer's Asia president, said in a recent interview in Dhaka with The Financial Express.
Bangladesh's economy has grown by over 6.0% in the past decade and the life insurance has also advanced steadily, he said, drawing a close relationship between the GDP growth and the insurance sector.
Mr Townsend noted the Bangladesh's insurance penetration remained the lowest in South Asia as the rate in other countries was around 3.5%.
"Bangladesh's penetration rate is around 0.5%, which indicates the level of development of insurance sector in a country," he said.
For robust insurance business growth, he attached importance to bancassurance.
He said that MetLife Bangladesh, which has 15,000 agents, had been the Number One player in the past 20 consecutive years commanding a market share of around 28%. MetLife has around 12 products in the country now.
He said that half of its business comes from two major cities --Dhaka and Chittagong-- and the remaining from other districts.