This document provides an overview of the financial sector and insurance industry in Bangladesh. It introduces the presenters and their topic of ethics in the financial sector of Bangladesh. It defines ethics and describes the structure of Bangladesh's formal, semi-formal, and informal financial sectors. The document also outlines the insurance industry in Bangladesh, including the major players like Jiban Bima Corporation and Sadharan Bima Corporation, as well as regulations and types of insurance products. It discusses challenges facing the insurance industry and potential solutions.

1. WELCOME
TO OUR PRESENTATION

2. We are the….
GLADIATORS
12th Batch; Sec-“B”
Department of Marketing
Jagannath University
WE HAVE…
 Rashed Ahmed (ID-M 160204597)
 Kamrul Hasan (ID-M 17120204742)
 Md. Ahaduzzaman (ID-M 17120204752)
 Monir Uddin (ID-M 17120204762)
 Mahmudul Hasan (ID-M 17120204767)
 Masud Kaysar Asif (ID-M 17120204774)
 Mohammad Kayes khan (ID-M 17120204775)
 Md. Al-amain (ID-M 17120204777)

3. OUR TOPIC IS
ETHICS OF FINANCIAL SECTOR IN
BANGLADESH

4. WHAT IS ETHICS
 Ethics involves learning what is right or wrong, and then doing the right thing
but "the right thing" is not nearly as straightforward as conveyed in a great deal
of business ethics literature.
 A set of moral principles, especially ones relating to or affirming a specified
group, field, or form of conduct.
 Rules of behavior based on ideas about what is morally good and bad.

5. FINANCIAL SECTOR IN
BANGLADESH
The present structure of the financial sector in Bangladesh comprises of various
types of banks, insurance companies, and non-bank financial institutions.
 The sectors have been categorized in accordance with their degree of regulation.
The formal sector includes all regulated institutions like banks, non-bank
financial institutions (FIs), insurance companies, capital market Intermediaries
like brokerage houses, merchant banks etc.; micro finance institutions (MFIs).
 The semi formal sector includes those institutions which are Specialized
Financial Institutions.
 The informal sector includes private intermediaries which are completely
unregulated.

6. CONTINUE…
Financial Sector in
Bangladesh
Informal
Semi-formal
Specialized Financial
Institutions
Formal
Financial
Market
Money Market
Capital Market
Foreign Exchange
Market
Regulation &
Industry
Bangladesh Bank
(Central Bank)
Insurance Development &
Regulatory Authority
(Insurance Authority)
Securities & Exchange
Commission
(Regulatory of capital
market Intermediaries)
Microcredit Regulatory
Authority
(MFI Authority)

7. INSURANCE
 An arrangement by which a company or the state undertakes to provide a
guarantee of compensation for specified loss, damage, illness, or death in
return for payment of a specified premium.
 A thing providing protection against a possible eventuality.

8. INSURANCE 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 and general, 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.

9. INSURANCE DEVELOPMENT &
REGULATORY AUTHORITY(IDRA)
 Insurance Development and Regulatory Authority (IDRA) has been formed
under the provision on Insurance Development and Regulatory Authority Act
2010 on 26th January in 2011.
 IDRA has established for the purpose of supervising the insurance business and
safeguarding the interest of policy holder.
 IDRA, consisting by one Chairman and four Members, some Executive
Directors and Directors carrying the different functions of the authority.

10. 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

11. TYPES INSURANCE

12. JIBON BIMA CORPORATION
State-owned life Insurance company in Bangladesh, established at May 14, 1973.
Functions
 JBC offers 21 different types of life insurance schemes.
 Web Services
 Online Premium Payment
 Bonus Information
 Tax Benefits/ Rebates
 Banglalink Insurance Pay Service

13. SADHARON BIMA CORPORATION
Established on 14th May, 1973 under the Insurance Corporation Act VI.
Functions
 Insuring public and private property risks.
 Liability insurance coverage.
 Reinsurance of the risk underwritten by private non-life insurers.
 Risk Improvement Services.
 Weather Index Based Insurance Solutions
 Industrial & Human Resources Development for Insurance Industry.

14. WORKING OF INSURANCE

15. CONTINUE…
Premium is an amount to be paid for a contract of insurance.
Life insurance coverage is purchased for a certain length of time, such as for ten
years, 15 years, 20 years, 25 years, 30 years – and in some cases, even longer. There
is also a 1-year renewable term life insurance option that is offered by many of the
best life insurance carriers.
Death benefit may be a large lump-sum payment from a life insurance policy.
The investment options in a variable annuity are known as “sub-accounts”.
The cash value of an insurance contract, also called the cash surrender value or
surrender value, is the cash amount offered to the policy owner by the issuing life
carrier upon cancellation of the contract.

16. INSURANCE COMPANIES IN
BANGLADESH

17. MAJOR PLAYERS

18. CSR TOWARDS INSURANCE
SECTOR
 To perform his / her duties in high esteem.
 To give utmost priority to the client's interest.
 Not to disclose client's confidential and personal information.
 To ensure prompt and sincere service to the client and his or her family.
 To use appropriate methods in convincing clients to protect their insurable
interest.

19. FINANCIAL SYSTEM OF
INSURANCE
 Establishing and defining the client.
 Gathering client data, including goals.
 Analyzing and evaluating the financial status.
 Developing and presenting Financial Planning recommendations.
 Implementing the Financial Planning recommendations.

20. RISK MANAGEMENT
An insurance company, by virtue of its business nature, undertakes the risks of the
policyholders. Management of risks is very crucial as the same is highly correlated
with the long run sustainability and operating efficiency of the insurer. Principally,
the higher the risk management practice, the lower the risk and the more
protection for the stakeholders. The risk management primarily deals with the
fortuitous events and their impacts which basically come from the core business
activities of the insurance company. In addition, some operational risks and market
risks are also associated with, which also need to be addressed.

21. PROBLEMS OF INSURANCE
BISINESS IN BANGLADESH
Social Problems
 Less public awareness
 Centralization
Economic Problems
 Weak economy
 Poor financial position of the insurance companies
 Weakness in industrial sector
 Higher cost of business

22. CONTINUES…
Political Problems
 Political instability
 Lack of supervision from the government
 Problem of planning and administration(Govt. changes, planning and
administrative measures change)
Other problems
 Lack of capital
 Limitations of insurance knowledge
 Lack of information technology etc.

23. SOLUTION
 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.

24. CONCLUSION
Insurance has a huge market in Bangladesh. It is perceived that insurance
companies do unethical practices at the expense of the policy holders. Keeping
these in mind this study tried to find out the policy holders view regarding the
ethical standards of the life insurance companies.