A high rate of accidents on roads in Cambodia
encouraged the population to invest in motor insurance and third-party
liability insurance.
The
Bangladeshi government’s commitment to promoting the insurance industry as an
important component of the financial system means it has a promising future.
Reform measures have been implemented to mobilize savings from both rural and
urban areas, and use them in social and economic programs or projects. As a
step towards this, the government implemented two acts – the Insurance Act, and
the Insurance Development and Regulatory Act – in 2010. It also organized the
first South Asian Association for Regional Corporation (SAARC) Insurance Regulators’
Conference in Dhaka in April 2013. The conference aimed to provide scope for
insurance professionals in the country and to improve their understanding of
the insurance industry and insurance regulatory frameworks. Initiatives such as
these are expected to support the growth of the country’s insurance industry
over the next five years.
Complete
report available @ http://www.rnrmarketresearch.com/the-insurance-industry-in-bangladesh-key-trends-and-opportunities-to-2017-market-report.html .
Low
awareness restricted insurance industry growth. Only 5% of the country’s
population possesses life cover and over 80% of non-life insurance business is
derived from commercial lines of business. However, the Bangladeshi regulatory
authority is addressing this problem through participation in national and
educational exhibitions, and road shows. The regulatory body is actively conducting
press interviews, publishing newspaper articles, brochures and leaflets on ‘how
to obtain insurance cover’ and ‘how to fill in a proposal form’, and providing
informative press notices. Nevertheless, changing attitudes and popular
perceptions remain a challenge.
Given the
small volume of business, the Bangladeshi insurance industry is highly
fragmented. Sadharan Bima Corporation (SBC), a state-owned insurer, dominates
the non-life segment, while life insurance is dominated by Jiban Bima
Corporation, another state-owned firm.
The non-life
segment is significantly smaller than the life segment. However, non-life
insurance has more than twice the number of companies operating in it. This
illustrates the highly competitive nature of the segment, and the level of
fragmentation. In the non-life segment, market participants are focused on
commercial lines of business.
Bangladesh
is highly vulnerable to climate change. The country is exposed to floods,
cyclones and tornados, which seriously affect human life, shelter, agriculture,
and food and water security. The increasing amount of risk being retained by
insurers.
With 50% of
the Bangladeshi population living below the national poverty line, growth in
the life insurance segment is limited. A high illiteracy of 43%, and religious
beliefs also restricted growth. In order to tackle this problem, general
insurance companies are aiming at commercial lines of business rather than
personal lines.
Reasons to buy:
- Increase your knowledge of the factors affecting the Bangladeshi insurance industry.
- Minimize the business risks you may face within this market.
- Obtain a better understanding of the regulations introduced and how they affect the industry.
- Gain a clear understanding of market opportunities and entry strategies to gain or grow your market share in the insurance industry in Bangladesh.
- Receive the information needed to gain a greater understanding of the technological trends in the insurance industry.
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