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.