, career opportunity in the insurance sector , what is insurance , types of insurance , non-life insurance , life insurance , history of insurance in bangladesh , insurance - scope and opportunities

1. Career Opportunity in the Insurance Sector

2. What is Insurance?
 Insurance is a co-operative form of distributing a certain risk over a group of
persons who are expopoed to it.
 Insurance is a mechanism to transfer the risk.
 Life insurance may be defined as a contract, whereby the insurer in consideration of
a premium undertakens to pay a certain sum of money eihter on the death of the
insured or on the expiry of a fix period.

3. Types of Insurance
Two types of Insurance:
1. Non-life insurance or General Insurance
2. Life Insurance

4. Non-life insurance
Mainly three types:
 Marine insurance
 Fire insurance
 Miscellaneous insurance

5. Life Insurance
Main three different types of life insurance are:
 Whole life insurance
 Endowment life insurance
 Group life insurance

6. Life insurance
 The different types of life insurance are:
 Term life insurance
 Level term life insurance
 Non-level term life insurance
 Permanent life insurance
 Whole life insurance
 Universal life insurance
 Indexed universal life insurance
 Specialty life insurance
 Final expense life insurance
 Group life insurance
 Accidental death and dismemberment (AD&D)
 Joint and survivorship life insurance
 Fully underwritten life insurance (exam required)
 Simplified issue life insurance
 Guaranteed issue life insurance (no exam)

7. History of Insurance in Bangladesh:1
Pakistan period (1947–1971)
 After partition of India three insurance companies were
under Muslim ownership:The Eastern Federal Union Insurance Company Limited, Muslim
Insurance Company Limited and Habib Insurance Company Limited.
 These three companies moved to Pakistan and registered to transact business
there. The total number of insurers (life plus life and general) registered in Pakistan in
1951, 1961 and 1971 were 13, 17 and 75 respectively.
 In 1971, out of 75, ten of the 40 Pakistani companies were exclusively engaged in life
insurance business, 21 in life and other business, and 9 in other business only.
 There were only four foreign insurance companies marketed their products in Pakistan
in 1971: Norwich Union Life Assurance Society, Pearl Assurance Company Limited,
Prudential Assurance Company Limited and American Life Insurance Company
Limited.

8. History of Insurance in Bangladesh:2
Bangladesh period (1971–1973)
 The number of insurance companies that had business in East Pakistan was 75, of which 10 were
locally incorporated ones.
 Following the independence of Bangladesh in 1971, both life and general insurance business in
the country was nationalised under the Bangladesh Insurance (Nationalisation) Order 1972
except foreign insurance companies.
 Five corporations were established to absorb, own and control the businesses of the 75 existing
insurance companies and these new corporations were Bangladesh Jatiya Bima Corporation,
Karnafuli Bima Corporation, Tista Bima Corporation, Surma Jiban Bima Corporation and Rupsa
Jiban Bima Corporation.
 These four corporations were in business from 1 January 1973 to 14 May 1973.

9. History of Insurance in Bangladesh:3
Creation of the JBC and SBC:
 On 14 May 1973, the Bangladesh government dissolved the Jatiya Bima Corporation and
integrated the general and life insurance companies into two corporations.
 Accordingly all the undertakings of Karnafuli and Teesta were vested in the Sadharan (General)
Bima Corporation. Surma and Rupsa Jiban Bima Corporations were vested in the Jiban Bima
Corporation.

10. History of Insurance in Bangladesh:4
Private Insurance companies
 Until 1985, the JBC and SBC was the only institution to handle life and non insurance
business in Bangladesh. Through the Insurance (Amendment) Ordinance 1984 and
Insurance Corporations (Amendment) Ordinance 1984, the government allowed the private
sector to establish insurance companies. Then 5 life insurance and 24 non-life insurance
companies started insurance business in private sector.
 Up to December 2000, at least 17 private sector insurance companies came into being and
made the life insurance business competitive. On the other hand 17 private sector insurance
companies
 In 2015 the number of private life insurance companies in Bangladesh has reached at 30
and the private life insurance companies at 45.
 In 2019 the number of private life insurance companies in Bangladesh has reached at 31
and the private life insurance companies at 45.
 At prescent total private insurance companies in Bangladesh is 76.

11. Insurance - Scope and Opportunities
Insurance business in Bangladesh is booming. With the
participation of private players as well as multinationals
career opportunities in this sector has grown manifold.
To embark in this field sound knowledge in mathematics,
commerce, statistics, computers and English is desirable.
Candidates are expected to have or to develop in-depth
understanding of money, finance, market and insurance
business.

12. Work Opportunities
Work opportunities in insurance sector are enormous. Those who satisfy eligibility qualification
works under following capacities in Insurance organization and companies of Bangladesh:
 Administrative Officer
 Assistant Administrative Officer
 Development Officer
 Insurance Agents
 Insurance Surveyors
 Actuaries
 Insurance Underwriter
 Investment Professionals

13. Remuneration of Employees
Government Insurance organizations, JBC & SBC pays salary and other benefits according to
government rules and regulations.
However those hopping employment in private sector may expect to start with handsome money per
month and salary goes upward as soon one gets experience and promotions.
Commission is one of the most important parts of this business. Both government and private
employees receives commission along with basic pay for performance in work. The better one
perform, higher one gets commission and chances becomes even to go up in the corporate ladder.
There is no looking back in this sector for those who can prove their worth.
Actuaries are most respected professional in insurance sector. A fresher Actuary may start with an
annual salary of approx 50 lac per year along with other benefits. Though, salary and perks increases
with performance and promotions.

14. Actuary Profession In Bangladesh
An Actuary is a business and finance expert who deals
with financial effect of risks and uncertainty.
These professionals offer expert assessment of financial security system with a focus on difficulty
level, working and mathematics. What a civil engineer applies in a dam construction, actuary
professionals applies in finance. With the high growth potential of insurance sector in Bangladesh
the career prospects for trained actuaries are bright.

15. Career Opportunities of an Actuary
An actuary collects and scrutinizes facts and calculates risks and returns to make financial planning in
specific domains. Most of the time an actuary kept engaged with numbers, he or she uses 65% of time
working in group, fixing goals, performing statistical researches and reviewing work. Being an actuary
needs in-depth understanding of statistics, probability and risk analysis. Professional Actuaries find work
opportunities in following sectors:
 Life insurance
 General insurance
 Health insurance
 Reinsurance Companies
 Pension funds
 Consultants
 Investments
 Government
 Academics
 Risk Management

16. Insurance Underwriter
Insurance underwriters work for insurance companies. An insurance underwriter's role is to choose
who and what the insurance company will insure based on risk assessment. Underwriting is the
"behind the scenes" work in an insurance company.
 Reviews specific information to determine what the actual risk is
 Determines what kind of policy coverage or what perils the insurance company agrees to
insure and under what conditions
 May restrict or alter coverage by endorsement
 Looks for proactive solutions that may reduce or eliminate the risk of future insurance claims
 May negotiate with your agent or broker to find ways to insure you when the issue isn't so clear-
cut or there are insurance issues.