Very useful for students

1. Insurance Business in Bangladesh
Group 4

2. Team Members
Reazaul Karim
Sarker
Marjana
Akter
Fayazur
Rahman
Md Istiak
Ahmed Foysal
Yesmin Akter
Sahid Uddin
Shahinoor
Farzana
Md. Fahim
Muntasir
Hridoy
Chandra Shil
Nushrat Jahan
Chowdhory Nayan Fahim Abrar
Protima Rani
Devonath
ID: 12005056 ID: 12005042 ID: 12005040 ID: 12005034
ID: 12005044 ID: 12005044 ID: 12005048 ID: 12005054
ID: 12005050 ID: 12005052 ID: 12005034 ID: 12005060

4. Present pattern of Insurance Business
Insurance Business in Bangladesh
Contribution of Insurance Business in the
National Development of Bangladesh
Cause of Nationalisation of Insurance
Companies in Bangladesh
1
2
3
4
5 The Jiban Bima Corporation
Insurance
Businesses
Table of
Contents

5. Sadharan Bima Corporation
American Life Insurance in Bangladesh
Private insurance companies of
Bangladesh
Prospects of insurance business in
Bangladesh
6
7
10
8
9 Problems of insurance bussiness in Bangladesh
Table of
Contents
Insurance
Businesses

6. 01
Reazaul Karim Sarker
ID-12005056
 Present pattern of Insurance Business

7. What is Insurance?
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party
agrees to compensate another party in the event of a certain loss, damage, or injury.

8.  Bangladesh insurance market is in an upward trend despite the low penetration rate.
 insurance sector is emerging due to modest GDP growth rate and high density of
population in the ‘SAARC’ region.
 Year 2020 & 2021 was a Setback
 The market Size and Present Position, the Insurance Industry of Bangladesh is promising
and having huge growth potentials.
Present Pattern of Insurance Business
o Combined Premium in proportion to GDP is 0.09% (Life -0.07% and Non-life
-0.02%)
o Bangladesh ranks 76th in the world
o World market share is 0.02 percent
o Combined life and non-life insurance market premium is BDT 76,785 million

9. 02
Yesmin Akter
ID-12005034
 Insurance Business in Bangladesh

10. Under the insurance company Act 1973, the company formed two corporation
Insurance Business in Bangladesh
Sadharan Bima Corporation and
Jibon Bima Corporation

11. Now days, 62 companies are operating under Insurance Act 2010. Out of them-
 18 Are Life Insurance Companies Including 1 Foreign Company And 1 Is State-Owned
Company,
 44 General Insurance Companies Including 1 State-Owned Company.
Insurance companies in Bangladesh provide following services:
1. Life insurance,
2. General Insurance,
3. Reinsurance,
4. Micro-insurance,
5. Takaful or Islami insurance.

12. 03
Fahim Abrar
ID-12005038
 Contribution of Insurance Business in the National Development of
Bangladesh (part 1)

14. 04
Fayazur Rahman
ID-12005042
 Contribution of Insurance Business in the National Development
of Bangladesh (part 2)

15. Insurance sector in Bangladesh on the way to sustainable growth
The liabilities of life insurers are of long terms and due to the nature of their liabilities they can
serve an important function as institutional investors providing capital to infrastructure and other
long-term investments. Thus insurance makes a significant contribution to economic growth by
improving investment climate and promoting a more efficient mix of activities than would be
undertaken in the absence of risk management instruments. The contribution is magnified by the
complementary development of banking and non-bank financial institutions.
To accelerate the process of economic development the government of Bangladesh initiated a set of
policy and institutional reforms within the banking sector in recent years. These reforms have
continued unabated and extended to non-bank financial institutions in one form or other. Though the
insurance sector in Bangladesh has shown remarkable growth in recent years reflecting product
development and innovation.

16.  Formation of capital & increase of investment: Insurance companies receive premiums from insured persons.
These premiums increase national capitals. By investing the se capitals, national productions increase.
 Reduce of hindrance of risk: Every sorts of business consists of risks. These risks are more hazardous in
Bangladesh. Insurance companies minimize these risks by giving privileges on loss.
 Distribution of risks: Insurance companies deal with lots of insured people. So risks are being distributed among
them.
 Extension of business: By taking all uncertain business risk insurance companies extended the field of business in
our country. Insurance gives the assurance of indemnity and help to collect the capital to lunch a new business and
expand the existing business.

17.  Provide safety and security: Insurance provide financial support and reduce uncertainties in business and
human life. It provides safety and security against particular event. There is always a fear of sudden loss.
Insurance provides a cover against any sudden loss. For example, in case of life insurance financial assistance
is provided to the family of the insured on his death. In case of other insurance security is provided against
the loss due to fire, marine, accidents etc.
 Life insurance encourages savings: Insurance does not only protect against risks and uncertainties, but also
provides an investment channel too. Life insurance enables systematic savings due to payment of regular
premium. Life insurance provides a mode of investment. It develops a habit of saving money by paying
premium. The insured get the lump sum amount at the maturity of the contract. Thus life insurance
encourages savings.

18.  Medical support: A medical insurance considered essential in managing risk in health. Anyone can be a
victim of critical illness unexpectedly. And rising medical expense is of great concern. Medical Insurance is
one of the insurance policies that cater for different type of health risks. The insured gets a medical support
in case of medical insurance policy.
 Spreading of risk: Insurance facilitates spreading of risk from the insured to the insurer. The basic
principle of insurance is to spread risk among a large number of people. A large number of persons get
insurance policies and pay premium to the insurer. Whenever a loss occurs, it is compensated out of funds
of the insurer.

19. 06
Marjana Akter
ID-12005044
 Cause of Nationalisation of Insurance Companies in Bangladesh
(Part 1)

20. After the independence, on March 1, 1972, the Pakistan Insurance Corporation was
upgraded to Bangladesh Insurance Corporation. Subsequently, Mujibur Rahman was
appointed as its first managing director.
On March 22, 1972, Mujibur Rahman submitted the report on the mission of Bangladesh
Insurance Delegation.
The summary of recommendations on methodology of nationalisation for the
Bangladesh insurance industry:
1. For managing the nationalisation activities, a Corporation, viz., the ‘Bangladesh
Insurance Corporation’ should be adequate and competent enough to carry on the
insurance business of the country, for both life and general insurance.
2. Nationalisation not to apply to the old business of Pakistan-based and other foreign
insurers who had significant amount of net liabilities in Bangladesh. Approximately 80
per cent of the insurance business within the territory of Bangladesh used to be
written by Pakistan-based and other foreign companies who only had token assets in
Bangladesh for administrative purposes.

21. 3) To decide on a dateline for the nationalisation as early as possible not later than January 1,
1973, and to make all the logistical arrangements prior to that;
4) The management of the insurance business in Bangladesh was to be taken over by the
government immediately and custodians be appointed to manage the business of the insurers on
behalf of the government, only for the proprietary local insurers of Bangladesh;
5) The Pakistan-based and other foreign companies may not be legally regarded as insurers of
the country accordingly, custodians should not be appointed for these insurers and their business
was to be administered as suggested above;
6) To decide on necessary legislation for nationalisation to provide for compensation and
suggested methods of compensation, its settlement and approximate quantum of compensation;
7) To hire services of an experienced actuary from India for the purpose of calculating
compensation only for the proprietary local insurers of Bangladesh, since other insurers had
liabilities in excess of their assets, and for the valuation of assets and liabilities of the Pakistan-
based insurers.

22. 05
Md Istiak Ahmed Foysal
ID-12005040
 Cause of Nationalisation of Insurance Companies in Bangladesh
(part 2)

23. a) On account of underdeveloped stage of the insurance industry in Bangladesh and
particularly, on account of transfer of funds and deficiencies in their investments by
Pakistan-based and other foreign insurers, Bangladesh would have to commence with
heavy liabilities that may extend to well over Taka 50 crores. Moreover, on account of the
extensive damage caused to the economy of the country by the Pakistan hordes during
1971, the scope of business for several years would be extremely limited;
b) The daunting task in the field of insurance would be one of repair, integration and
consolidation rather than programming on ambitious lines;
Cause of Nationalisation of Insurance
Companies in Bangladesh

24. c) The precarious financial health of the Bangladesh proprietary composite insurance
companies. By 1970, except two companies (Homeland Insurance Company Limited and East
Pakistan Cooperative Insurance Society), all others were at developing stage; those which
were transacting life insurance business had minimal or negative ‘Life Fund’ balance.

25. 07
Sahid Uddin
ID-12005046
 The Jiban Bima Corporation

26. The Jiban Bima Corporation
The Jiban Bima Corporation is a Bangladeshi state-owned
insurance company and is the largest insurance company in the
country. The company was founded in 1972 and offers a wide
range of insurance products including life, health. The company
also provides reinsurance services.

27. PUBLIC SERVICES OF JBC
1. Selling of social life insurance
2. Claims settlement of endowment policy
3. Claims settlement of death benefit policy within 90 days from death of
the life assured
4. Claims settlement of mature life policy
5. Revival of lapse policy through different mechanism
6. Exemption of fine in the lapse policy
7. Assignment of the life insurance policy
8. Nominee change service to the policyholders

28. LIFE INSURANCE PRODUCTS OF JBC
Bangladeshi people have many life insurance products to choose from. Some of the most
popular life insurance products in Bangladesh are whole life insurance, term life insurance,
and universal life insurance. Whole life insurance is a type of permanent life insurance that
offers coverage for the policyholder’s entire lifetime. Term life insurance is a type of
temporary life insurance that offers coverage for a set period of time, usually 10-20 years.
Universal life insurance is a type of permanent life insurance that offers flexible coverage
options and cash value accumulation.

29. 08
Md. Fahim Muntasir
ID-12005048
 Sadharan Bima Corporation

30. Sadharan Bima Corporation
Sadharan Bima Corporation (SBC) the lone government-owned commercial general insurance
institution was established on 14 May 1973 with an approved capital of Tk 50 million under the
Insurance Act, 1973. SBC, being the only state-owned organization did monopoly business in the
field of insurance from its inception to 1984.
After that, SBC was acting as the sole insurer of general insurance till 1984. In
the year 1984 Bangladesh Government allowed insurance companies in the
private sector and that effects promulgated in insurance corporation
(Amendment) Ordinance 1984.

31. SBC has provided various policies
 Fire insurance policy
 Cash in Safe insurance policy
 All risk insurance policy
 Personal Accident insurance policy
 Dread disease insurance policy
 Export credit insurance policy
 Fidelity guarantee policy
 Cash on Counter insurance policy
 Marin agro insurance policy
 Product liability insurance policy
 Contractor’s all risk policy
 Engineering insurance policy
 Public liability insurance policy
 Workman’s compensation insurance policy

32. Importance of SBC in the National Economy of Bangladesh
Insurance business is the crucial weapon for smooth running of financial operations of the
country. Insurance business is very significant for the following roles:
Family Needs
Financial Security
Capital Formation
Security of Old Age
Sharing Risk
Eliminating Dependency

33. Achieving Social Value
Mental Peace
Profitable Insurance
Increasing Per Capita
Income & National Income
Protecting Inflation
Economic Development

34. 09
Hridoy Chandra Shil
ID-12005050
 American Life Insurance in Bangladesh

35. Insurance companies have been around since the pre-independence period in Bangladesh. However,
it started to pick up traction after independence when all the insurance companies were
nationalized. The Metropolitan Life Insurance Company (MetLife) previously known as American Life
Insurance Company (ALICO) is a very ancient insurance company started its journey in 1952 in
Bangladesh.
American Life Insurance in Bangladesh
This insurance company came here from America for the needs of
Bangladeshi people. It serves over a million customers and is a major
employer in Bangladesh with over 16,000 field force and employees. This
insurance company is originated from America. But the service it provides
really suits the needs of our people. So, it became the best insurance
company in our country over the years.

36. It has won the award of “Super brands Bangladesh Award 2020-2021”, and continues to
deliver excellence in its service and business policy. The company has over 1 million
clients in Bangladesh. You can choose from a range of services offered by MetLife. Their
primary services include Individual Life Insurance, Education Protection Plan, Retirement
Plan, Accident, and Health as well as Employee Benefits. The financial strength of the
company is also noteworthy as it holds an AAA rating. As the largest insurance company
in Bangladesh, MetLife is leading by example when it comes to clients as well as
employee satisfaction.
Specialties: Life Insurance, Health Insurance, Takaful Insurance, Financial
Security Headquarters: Dhaka

37. 10
Protima Rani Devonath
ID-12005060
 Private insurance companies of Bangladesh

38. Private insurance companies of Bangladesh
1. Sonali life insurance limited
Established in 2013, Sonali Life Insurance Co. Ltd. was incepted in the board rooms of an
organization formed thirty years ago.
Sonali Life Insurance is the only company in Bangladesh which completes the fastest policy related
process. Sonali Life Insurance Co. Lad's mission is to be the premier service provider of income
solutions, investments and protection plans that are required for financial security and retirement.
2.Meghna Life Insurance Company Ltd.
Meghna Life Insurance Company was born in 1996.Meghna Life insurance’s vision is committed to
assure standard that make every insurance transaction a pleasurable experience. They offer the
customers through accuracy, reliability, timely delivery, cutting edge technology. They focused on
providing services at the right price, with modern facilities. They work with people from all
backgrounds and provide services to all kinds of individual and corporate organization.

39. 3.Popular life insurance company
Popular Life Insurance Company Ltd is a leading and prominent life insurance company in the
country's.The company was incorporated as a public limited company on September 26, 2000
under The Companies Act,1994.This unique Organization started its journey with the goal of
reaching every insurable citizen in bangladesh. There are many companies, but they didn’t have
means to reach out to all of them.Popular life insurance co. ltd achieved this by designing unique
schemes and companies to bring everyone under this protection.
4.Delta Life Insurance Co Ltd
In 1984, Bangladesh Government allowed private sectors in insurance industry, which led to the
creation of Delta Life Insurance Co Ltd, started by number of Bangladeshi citizens then working
abroad. They started this because they wanted their fellow citizens to get the top class insurance
services which are common in western countries.

40. 5.Rupali Life Insurance Co Ltd
Established in year 2000, this company has grown from a small position to a large success, mainly
due to its strong backbone support from investors and the passionate work from agent officers.
Their schemes are designed to suit the segments they work on, which has connected well with the
customers.

41. 11
Nushrat JahanChowdhory Nayan
ID-12005052
 Problems of insurance business in Bangladesh

42. Several problems in insurance business in Bangladesh. Those are broadly discussed in social,
economic, political, legal, and other problems.
Problems of insurance business in Bangladesh
Social problems
1. lack of public
awareness
2. centralization
and policy
Economic
problems
Political
problems
Legal & other
problems
3. Poor economy
4. weak financial
position of
insurance company
5. problems
of effective
principle
6. Low savings
7. political
instability
8. Less supervision
from the
government
9. complexity of
documentation
10. scarcity of skilled
stuff
11. lack of insurance
knowledge
12..Bad image &
Religious superstition

43. 12
Shahinoor farzana
ID-12005054
 Prospects of insurance business in Bangladesh

44. As well as the problems mentioned above, there are many good signs for the insurance
business in Bangladesh. The factors that can facilitate the insurance business in our
country are discussed below. These facts can be measured as the prospective fields for
insurance business in Bangladesh.
Prospects of insurance business in Bangladesh

45. Higher GDP
Increased population
New business’s individual insurance
Developing mass awareness about insurance
Micro insurance
Development of new policy
Scope in non-traditional sector
Scope of investment
Service diversification
Business sector
Agriculture sector
Education sector

46. END