Magazine

Read the latest edition of AIR and MEIR as an Interactive e-book

Mar 2024

Bangladesh: Opportunities abound in insurance sector

Source: Asia Insurance Review | Jun 2019

Bangladesh’s insurance sector is a vital area that requires more attention and would benefit from regulatory reform, according to Mr Mamun Rashid, a partner at PwC Bangladesh, in an article published in Dhaka Tribune.
 
Currently, Bangladesh’s insurance sector comprises 45 general insurers and 31 life insurers. In addition, the country has two state-owned insurance corporations – one in general insurance and the other in the life segment. Life insurance constitutes a 73.5% share of the overall insurance market and non-life insurance a 26.5% share.
 
Yet, despite some growth, insurance penetration in Bangladesh was a mere 0.7% in 2016 and has mostly been falling since 2009. 
 
Mr Rashid highlighted several areas where more could be done by the insurance sector:
  • There are insufficient insurance products in agriculture which accounts for more than a third of all employment.
  • Health insurance in both the private and public setor is virtually non-existent.
  • Pension schemes are mostly seen in the government sector and most elderly people have to rely on family support for their sustenance.
  • Growing affluence will increase demand for life insurance.
  • As the country becomes more industrialised, the demand for fire and property insurance as well as workers’ compensation is likely see a substantial growth in demand.
| Print
CAPTCHA image
Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.