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Insurance
This document provides an overview of the insurance sector in Bangladesh. It discusses the history and types of insurance, including life, property, fire, marine, and motor insurance. It outlines the economic role of insurance and analyzes the scenario and problems facing the insurance industry in Bangladesh, such as a lack of public awareness, political instability, and insufficient training. Finally, it offers recommendations on how insurance companies can improve, including better education, marketing strategies, and addressing economic and management issues.
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- 2. Table of Contents Background AboutInsurance Types of Insurance Perspectives of Insurance Economic Situation of Insurance in Bangladesh Scenario of Bangladesh Problems of insurance Ways of Successful Recommendation References
- 3. BACKGROUND… Bangladesh insurance historytraced back to British rule. Insurance company act in 1973 by Presidential Order No. 95. New insurance act in 2010, to modernize the sector. 65 Insurance company, 1 public (life), 1 public (non-life), 18 private (life), 45 private (non-life).
- 4. WHAT IS INSURANCE … Economicinstitution Two parties contract Written Agreement Distributes the risks Legal Agreement Assumes the Risk
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- 7. LIFE INSURANCE… • Acontract where insurer promises to pay beneficiary sum of money in exchange of premium upon the death of insured person.
- 8. CONSIDERATION OF LIFE INSURANCE … Age Gender Height& Weight Medical record Personal habits (smoker, drinker, drug use) Occupation **Amount of coverage required**
- 9. PROPERTY INSURANCE… It providesprotection against most risks to property. such as fire, theft and some weather damage.
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- 11. FIRE INSURANCE… • Insurancetaken out to cover the cost of damage caused by fire.
- 12. MARINE INSURANCE… • Itcovers the loss or damage of ships, cargo, terminal which transfer product from origin point to final destination. • Two types- o Marine Cargo Insurance o Marine Hull Insurance
- 13. MOTOR INSURANCE… • Itis insurance for cars, trucks, motorcycles, and other road vehicles in case of accident or theft.
- 14. PERSPECTIVE OF INSURANCE… All insurance companymainly depends on three perspective. These are- Economic perspective • Security and safety. • Promote financial stability. • Facilitate trade and commerce. • Encourages loss mitigation. • Helps mobilized savings. • Development of social sectors. • Enable risk to be managed more effectively.
- 15. PERSPECTIVE OF INSURANCE(CONT’D)… • Compensatesof certain losses only up to the insured interest. • Does not have the right of recovery from the party who caused the injury. • Honesty and fairness. • Similar obligations. Legal perspective • Employee requirement, retention and wellness. • Employment practices liability insurance. • Protection against consumers lawsuits and liabilities. • Commercial property and casualty insurance. Business perspective
- 16. ECONOMIC SITUATION OF INSURANCE COMPANY IN BANGLADESH… Formationof capital & increase of investment: receive premiums from insured persons, increase national capitals, national productions increase. Distribution of risks: deal with lots of insured people. Provide safety and security: financial support and reduce uncertainties in business and human life. Generates financial resources: generate funds by collecting premium. Life insurance encourages savings: a mode of investment. Medical support: essential in managing risk in health.
- 17. SCENARIO OF INSURANCE IN BANGLADESH… insurancesector in Bangladesh has grown up substantially and deepened remarkably with number of companies in both life and general segments Act 1990 provides that fifty percent of all insurance business relating to any public property shall be placed with the SBC and the remaining fifty percent of such business may be placed with this corporation or with any other insurers in Bangladesh. 50% of that business is distributed among the existing 45 private general insurance companies equally under National Co-insurance Scheme 1.The company’s place 100% of their reinsurance business with the SBC.
- 18. PROBLEMS OF INSURANCEBUSINESS IN BANGLADESH… In Bangladesh insurance has a great role but the insurance business in our country is not satisfactory. For some major reasons these happened. The major reasons are- Social Issues Less Public Awareness Centralization Economic Issues Weak Economy Weakness in Industrial Sector Higher cost of business Political issues Political instability Lack of supervision from the government Problem of planning and administration
- 19. PROBLEMS OF INSURANCE BUSINESS IN BANGLADESH (CONT’D)… •Too much complexity Legal Issues • Lack of capital • Lack of skilled staff • Lack of training • Insufficient service • Lack of advertisement • Lack of information technology • Lack of confidence • Lower rate of savings • Low return • Shortage of fund • Absence of business ethics (etc.) Other Issues
- 20. HOW INSURANCE COMPANIES IN BANGLADESHCAN BE MORE SUCCESSFUL ? Try to better insurance education Should practice more marketing strategies Should expand their target customer Importance to economic development Enhance training facility Development of management Try to earn trust and raise awareness Collected premiums should be invested into large and beneficial sectors Companies must modify their recruitment policy
- 21. RECOMMENDATION… In these currentera insurance is very important for business or individual . Every company serves same type of services that’s why the competition increases. We see that Bangladesh face many problems in these sector; to develop in these sector we have try to solve the problems. And a insurance company can progress if the economic condition is good. So, if we develop our economic condition and solve the problems it will help us to progress in insurance business in Bangladesh.
- 22. REFERENCES . .. en.wikipedia.org/wiki/insurance Sector wise company list/ insurance company Google.com/search-insurance definition slideshare.net