Role of insurance in Economy of Bangladesh

The Economy of Bangladesh has rapidly been shifting from agricultural to services sector. The role so played by the service sector is burgeoning as well. Insurance being one of the ingredients of the financial services industry has a lot to play if it is promoted properly. In this comprehensive and ultimate guide on the insurance sector of Bangladesh, we will walk you through the itineraries of the market. Let’s delve into the insurance market of Bangladesh. 

Country Report 2015 for Insurance Market in Bangladesh

In spite of the stable growth rate (around 10%) of the Bangladesh insurance industry in the last few years, the expansion of the insurance business, particularly the non-life sector, has experienced a down-ward trend in the year 2014 because of poor investment and slowdown of economic activities led by the political unrest. The experts have the fear of that the industry was likely to have the similar experience in 2015.

According to the statistics of Bangladesh Insurance Association (BIA), the total premium income of private sector life insurance companies rose from Tk. 62,429 million in 2013 to Tk. 66,879 million in 2014. The gross premium income of non-life private sector insurance companies increased from Tk. 21,038 million in 2013 to Tk. 22,670 million in 2014 with a growth rate of 7.76%. In Bangladesh the marine insurance is considered to be the life guard for the non-life insurance business. Marine insurance completely depends on imports which has continuously being disturbed by the political unrest but the market is expected to improve in 2015.