This document summarizes a presentation on the state, potential, and constraints of the insurance business in Bangladesh. It outlines the objectives of analyzing the current scenario and problems/prospects. It provides historical background on insurance in Bangladesh. It then describes the current state, major problems including social, economic, political, legal, and other issues. It discusses ways to overcome problems and prospects for future growth in areas like population, GDP, new products. It concludes that insurance contributes significantly to the economy by creating savings, capital formation, and more.

1. WELCOME
TO OUR PRESENTATION
ON
States , Potentials and constraints of insurance Business in Bangladesh

2. Name Roll No.
Tamjid Hossain Rasel 15-01-02-133
Nazratun Nayem 15-01-02-167
Asmaul Husna 15-01-02-146
MD. Mostafijur Rahman 15-01-02-166
Nafesa Tunnesa Muna 15-01-02-165
MD. Mahbubur Rahman 15-01-02-161

3. States , Potentials and constraints of
insurance Business in Bangladesh
Introduction
Insurance is a system of spreading the risk of one to the shoulders of many. It can be defined as
a co-operative device to spread the loss caused by a particular risk over a number of persons
who are exposed to it and who agree to ensure themselves against that risk. It is a contract
whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the
insured against losses arising out of certain specified unforeseen contingencies or perils insured
against. It can play an important role in a country’s economy.

4. Objectives
◦ Primary objective:
◦ The main objective of this report is to show the scenario of "Problems and prospects of Insurance in Bangladesh" at a glance.
◦ Secondary objective:
◦ To find out some major problems of insurance in Bangladesh such as Social, Political, Economical, Legal, Miscellaneous,
◦ To earn proper and right knowledge about the insurance business in Bangladesh.
◦ How it works in this country & Corporate social responsibility (CSR)
◦ To know about general insurance & its classification.
◦ Problem behind the insurance industry future plan of it.
◦ To earn practical knowledge about when the risk management and distribution system.
◦ To know the conditions under when claims are considered and the process of meeting claim.
◦ To know about their revenue, expenditure, profit, business policy, social work etc.
◦ To observe their development year by year.
◦ To earn knowledge about reinsurance business.
◦ To know how they respond to different parties.

5. Historical Background of Insurance
Business in Bangladesh
◦ Insurance is not a new business in Bangladesh. Almost a century back, during British rule in
India, some insurance companies started transacting business, both life and general, in
Bengal. Insurance business gained momentum in East Pakistan during 1947-1971, when 49
insurance companies transacted both life and general insurance schemes.
◦ After independence of Bangladesh, insurance industry was nationalized. In 1985 to 1988 first
generation of private general insurance companies were emerged as Bangladesh government
allowed the private sector to conduct business in all areas of insurance for the first time .

6. Present position of insurance business
in Bangladesh
◦ At present there are 44 general insurance companies running in Bangladesh. Many
other private companies are about to commence business.

7. Problems of Insurance Business in
Bangladesh
◦ There are many problems of insurance business in Bangladesh . The major criteria which are
social , economic, political , legal and other reasons mainly these reasons are
o Social Problems
◦ less public awareness.
◦ Centralization.

8. Economic Problems
1. Weak economy.
2. Poor financial position of the insurance company.
3. Weakness in industrial sector.
4. Higher cost of business.
5. Problems of economic bases and effective principle.
Political problem
1. Political instability.
2. Lack of supervision from the government.
3. Problem of planning and administration.

9. Legal Problems
1. Insufficient service.
2. Lack of exposure.
3. Absence of business ethics.
4. Too much complexity.

10. Other problems
• Lack of capital.
• Lack of skilled staff.
• Limitations of insurance knowledge.
• Lack of training.
• Lack of motivation program towards public.
• Lack of information technology.
• Delay in payments of claims.
• Traditional Method.
• SHORTAGE OF FUND.
• Lower Rate of Savings.
• Not Knowing What Customers Expect.
• The Wrong Service-Quality Standards.
• The Service-Performance Gap.

11. • LACK OF CONTINUITY.
• LACK OF NEW PRODUCT.
• LOW RETURN.
• RESTRICTIVE INSURANCE ACT.
• LOW ATTRACTIVENESS OF OFFERINGS.
• TRADITIONAL INSURANCE ACT.
• NATURE OF INTANGIBILITY.
• LACK OF ADVERTISEMENT.
• INABILITY TO SOLVE PROBLEMS.
• LACK OF RELIABILTY.
• ADVNTAGES OF PSC.

12. Ways of overcoming the problems
• Spread of insurance education.
• Publicity & 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.
• Modernization of insurance business.
• Govt. monitoring system.
• Modernized the insurance Acts and Ordinances.
• Emphasize on other sectors development.

13. Prospects 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.

14. Impact on Our Economy
◦ Insurance business contributes to develop economic condition of Bangladesh. As a result :
◦ Creating more savings.
◦ Makes capital formation.
◦ Develops trade and commerce.
◦ Creates more employment.
◦ Social security.
◦ Provides security of asset and human life by taking risk.
◦ Collect money from society for investment.
◦ Improve standard of living.
◦ Generate employment facilities.

15. Comments and Suggestion
From the presiding discussions of the report, we can realize that the policy makers within the
government and the insurance company should adopt effective measures in order to make good use
of the opportunities and to tackle the threats for ensuring a healthy development of the insurance
industry. The following actions are suggested.
o The insurance companies of Bangladesh should practice marketing through the use of promotional
tools such as advertising, sales promotion, public relate
o insurance companies should expand their target market by providing responsive services and
establish efficient departments to perform such task on and publicity
o Government must minimize the restrictions on premium so that insurance companies can fix their
premium according to the
o The collected premium should be invested in large and beneficial sectors r demand
o In order to do so each company should established and effectively operate research and
development department.

16. Conclusion
In present insurance is too much important to the business and individual sector. Most of the
companies provide more or less same services. For this reason the competition is increasing day
by day between the insurance companies

17. Thanks for watching