The insurance industry in Bangladesh has grown modestly over time. It currently contributes 0.4% to Bangladesh's GDP, with life insurance contributing 0.29% and non-life contributing 0.11%. While some insurance began under British rule in the 1900s, the industry was nationalized in the 1970s and 1980s before private insurers emerged. Several laws and acts now regulate the industry, which is overseen by the Insurance Development and Regulatory Authority. There are opportunities for growth through increasing awareness, expanding coverage areas, and developing the economy, but challenges include weak economic conditions, a lack of capital and technology, and low public awareness of insurance.

1. Insurance Industry in
Bangladesh
Prepared by
Tanzila Akter

2. An agreement by which a company or
the state under takes to provide a
guarantee of compensations for specified
loss damage illness or death in return for
payment officers specified premium.
In generally, a thing providing protection
against a possible eventuality.
In 2021 our insurance sector’s
contribution to GDP is 0.29% by Life, and
0.11% by Non-life, totaling 0.40%.
Insurance

3. History of Insurance in Bangladesh
• Almost a century back, during British rule in India, some insurance companies
started transacting business, both life and general insurance, in Bengal.
• The government of Bangladesh nationalized insurance industry in 1972 by the
Bangladesh Insurance (Nationalization) Order 1972.
• On 14 May 1973, a restructuring was made under the Insurance Corporations
Act 1973. Following the Act, in place of five corporations the government formed
two: the Sadharan Bima Corporation for general business, and Jiban Bima
Corporation for business.
• 49 insurance industry has Nationalized in 1985-1988 as first generations of
providing private general insurance company or emerge as Bangladeshi
government all of the private sector to contact business in all area of insurance
for the first time.

4. Some Insurance Act
• The Insurance Act 1938
• The Insurance Rules 1958
• The Insurance (Amendment) Ordinance
1984
• Insurance Regulations 1990
• Insurance Ordinance 2008
• Insurance Act 2010
• Insurance Development and Regulatory
Authority Act 2010
• Asian Reinsurance Corporation Act 2013

5. Insurance Development & Regulatory Authority(IDRA)
IDRA has been formed under the provision on Insurance Development
and Regulatory Authority Act 2010 on 26th January in 2011.
DRA has established for the purpose of supervising the insurance
business and safeguarding the interest of policy holder.
✪ Making regulation for Insurance Industry and delegation of powers
✪ Establishment of the Insurance Regulatory Fund
✪ Establishment of Insurance Advisory Committee
✪ Power to make any future rules or amendments, etc.

6. Some Insurance Companies in
Bangladesh
77 Insurance Company (29 Private Life Insurance, 45
Non-Life Insurance, 1 Foreign insurance, 2 State
Owned Insurance)
• MetLife
• Delta Life Insurance Co. Ltd.
• Jiban Bima Corporation
• Popular Life Insurance Co Ltd. (PLICL)
• Sandhani Life Insurance Co. Ltd
• Sunlife Insurance Company Ltd

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

8. Economic Problems
• Weak economy
• Poor financial position of the
insurance companies
• Weakness in industrial sector
• Higher cost of business
Other problems
• Lack of capital
• Limitations of insurance knowledge
• Lack of information technology etc.
Social Problems
• Less public awareness
• Centralization
Political Problems
• Political instability
• Lack of supervision from the
government
• Problem of planning and
administration(Govt. changes, planning
and administrative measures change)
Challenges of Insurance Business in Bangladesh

9. Bangladeshi Insurance Business Pre Covid-19
• According to the statistics of Bangladesh Insurance Association (BIA),
the total premium income of private sector life insurance companies
earned Tk. 60,429 million in 2018
• The gross premium income of non-life private sector insurance
companies was Tk. 21,038 million in 2018
• According to The World Insurance Rank, Bangladesh rank 80 position
in 2018

10. Bangladeshi Insurance Business Post Covid-19
• Bangladesh Insurance Association (BIA), the total premium income
of private sector life insurance companies earned Tk. 66,879 million
in 2022
• The gross premium income of non-life private sector insurance
companies increased Tk. 22,670 million in 2022 with a growth rate of
7.76%.
• According to the World Insurance Rank, Bangladesh rank 76 position
in 2022

11. Solution of Insurance business in
Bangladesh
• Spread of insurance education.
• Publicity and increase of awareness.
• Increase of training facilities.
• Formulation of effective principles.
• Uphold the interest of policy holder.
• Importance to the economic
development.
• Development of management.

12. Leaning
Insurance has a huge market in Bangladesh. Insurance is a balance of
risk and reward, with insurance companies trying to weigh what we
must pay each month with the potential for having to make a claim. We
also learn about the ethical standards of the life insurance companies
and non-life insurance companies regarding both policy holders view
and policy maker view.
Understanding the ins and outs of insurance gives us an advantage for
our own career options when searching and learning about the field.

13. Thank You