Annual Report
2018-2019 and 2019-2020
Insurance Development and Regulatory Authority
i
Table of Content
SL No
Particulars Page Number
01
Key Takeaways of Bangladesh Insurance 1
02
Chairman, Members and Other Officers 3
03 The World Economy and Insurance 7
04 Position of Bangladesh in the World insurance Market
7
05 Insurance Penetration and Density in Bangladesh 9
06 An Overview of Bangladesh Insurance Industry 11
07
Activities of Insurance Development and Regulatory Authority
13
08 Prime Minister Sheikh Hasina and Insurance Sector
13
09 National Insurance Policy, 2014 13
10 Authority Meeting 13
11 Registration of Insurance Company
14
12 Insurance Surveyors
14
13 Agent License fees 15
14 Approval of Life Insurance Product 15
15 Approval of Non-Life Insurance Products
16
16 Coordinating Meeting 16
17 Promulgating Rules and Regulation 16
18 Inspection 16
19 Imposing Penalty 17
20 Remarkable steps taken by IDRA 17
21 Significant steps taken for the non-life insurance sector 18
22 Significant steps taken for the life insurance sector 19
23 Innovation Team 19
24 Bangladesh Insurance Sector Development Project 19
25 Arranging Insurance Fair 19
26 Digital World Fare 20
27 Participation in Development Fairs held at all District and Upazila
level
20
28 Enhancing Trust Among the Common People 20
29 Actions against Anti-money Laundering 20
30 Implementation of National Integrity Strategy (NIS) 21
31 Introducing the Bengali Language in all aspects 21
32 Membership of AFI and IAIS 21
33 Formulation of Third Capital Market Development Program
outline
21
34 Digitalization in Insurance Sector 21
35 Workshop/ Seminar 22
36 Meeting Regarding Settlement of Insurance Claim 22
37 Financial Stability Report 22
38 Collecting Financial Information from the insurer 22
39 Insurance for Expatriate Workers 23
40 Various Ongoing Development Tasks 23
41 Appointment of Chief Executive Officer 23
42
Approval of Branch Opening 23
ii
SL No
Particulars Page Number
43
Income and Expenditure of IDRA 23
44
Life Insurance
2
7
45
2
7
46
The Sector
-
wise premium income
2
8
47
First Year and Renewal Premium Income
2
9
48
Market Share in Life Insurance Business
30
49
Top ten insurers in terms of premium income
3
2
50
Total Number of Policy in Life insurance Business
3
3
51
Newly Issued Policies
3
4
52
Lapsed Policy
3
5
53
Life Fund
3
5
54
Top ten insurers in terms
of Life Fund
3
8
55
Life Insurers’
Assets
3
9
56
The mix of the assets
40
57
Investment
4
2
58
Investment portfolios
4
3
59
Top Ten insurers in terms of investment
4
5
60
Investment Return
4
6
61
Management Expenses
4
7
62
Claim Settlement
4
9
63
Number
of Settled Insurance Claims
5
2
64
Policy holder Liability and Actuarial Surplus
5
3
65
Paid
-
Up Capital
5
4
66
Life insurers’ Agent
5
4
67
Branches of Life Insurers
5
5
68
Staff
5
5
69
Tax and VAT
5
5
70
Non
-
Life Insurance
5
6
71
5
6
72
Sub cla
ss wise gross premium income
5
7
73
Gross premium and Net Premium of SBC
5
9
74
Market Share
60
75
Number of Policy
6
1
76
Management Expenses and Management Expenses Ratio
6
3
77
Combined Ratio
6
5
78
Assets
6
5
79
Investment
6
8
80
Investment Income
7
1
81
Claim Settlement
7
1
82
Number of Claims
7
5
83
Branch
7
6
84
Agent
7
7
85
Staff
7
7
86
Paid
-
Up Capital
7
8
87
Stamp Duty
7
8
88
Tax and VAT
7
9
89
Annexure
80
iii
Vision
To bring general public under the coverage of insurance step by step by tackling the economic
risk of life, health and assets therby ensuring social and economic security as one the human
rights.
Mission
To bring hundred percent risk of life and assets of the country under insurance coverage.
iv
Insurance Company Full Name Annual Report Purpose Company
Labels
1 Alpha Islami Life Insurance Ltd Alpha
2 Astha Life Insurance Astha
3 Baira Life Insurance company Ltd Baira
4 Best Life Insurance Ltd Best
5 Chartered Life Insurance company Ltd Chartered
6 Delta Life Insurance company Ltd Delta
7 Diamond Life Insurance company Ltd Diamond
8 Fareast Islami Life Insurance company Ltd Fareast
9 Golden Life Insurance Ltd Golden
10 Guardian Life Insurance Ltd Guardian
11 Homeland Life Insurance company Ltd Homeland
12 Jamuna Life Insurance company Ltd Jamuna
13 Jiban Bima Corporation JBC
14 Life insurance Corporation of Bangladesh Ltd LIC
15 Meghna Life Insurance company Ltd Meghna
16 Mercantile Islami Life Insurance company Ltd Mercantile
17 MetLife (American Life Insurance Company) MetLife
18 National Life Insurance company Ltd National
19 Bengal Islami Life Insurance company Ltd Bengal Islami
20 Padma Islami Life Insurance Ltd Padma
21 Popular Life Insurance company Ltd Popular
22 Pragati Life Insurance Ltd Pragati
23 Prime Islami Life Insurance Ltd Prime
24 Progressive Life Insurance company Ltd Progressive
25 Protective Islami Life Insurance company Ltd Protective
26 Rupali Life Insurance company Ltd Rupali
27 Sandhani Life Insurance company Ltd Sandhani
28 Sonali Life Insurance company Ltd Sonali
29 Sunflower Life Insurance company Ltd Sunflower
30 Sunlife Life Insurance company Ltd Sunlife
31 Swadesh Life Insurance company Ltd Swadesh
32 Trust Islami Life Insurance Ltd Trust
33 Zenith islami Life Insurance Ltd Zenith
34 Akij Takaful Life Insurance Company Ltd Akij Takaful
35 NRB Islamic Life Insurance Company Ltd NRB Islamic
v
Abbreviations for Non-Life Insurance Companies
SL Insurance Company Full Name Annual Report Purpose Company
Labels
1 Agrani insurance Company ltd Agrani
2 Asia Insurance Ltd Asia
3 Asia Pacific General Insurance Company Ltd Asia Pacific
4 Bangladesh Co-operative Insurance Ltd BD Co-operative
5 Bangladesh General Insurance Company Ltd BD General
6 Bangladesh National Insurance Company Ltd BD National
7 Central Insurance Company Ltd Central
8 City General Insurance Company Ltd City General
9 Continental Insurance Ltd Continental
10 Crystal Insurance Company Ltd Crystal
11 Desh General Insurance Company ltd Desh General
12 Dhaka Insurance Ltd Dhaka
13 Eastern Insurance Company Ltd Eastern
14 Eastland Insurance Company Ltd Eastland
15 Express Insurance Ltd Express
16 Federal Insurance Company Ltd Federal
17 Global Insurance Ltd Global
18 Green Delta Insurance Company Ltd Green Delta
19 Islami Commercial Insurance Company Ltd Islami Commercial
20 Islami Insurance Bangladesh Ltd Islami Insurance BD
21 Janata Insurance Company Ltd Janata
22 Karnaphuli Insurance Company Ltd Karnaphuli
23 Meghna Insurance Company Ltd Meghna
24 Mercantile Insurance Company Ltd Mercantile
25 Nitol Insurance Company Ltd Nitol
26 Northern Islami Insurance Ltd Northern Islami
27 Paramount Insurance Company Ltd Paramount
28 Peoples Insurance Company Ltd Peoples
29 Phoenix Insurance Company Ltd Phonix
vi
30 Pioneer Insurance Company Ltd Pioneer
31 Pragati Insurance Ltd Pragati
32 Prime Insurance Company Ltd Prime
33 Provati Insurance Company Ltd Provati
34 Purubi General Insurance Company Ltd Purubi
35 Reliance Insurance Ltd Reliance
36 Republic Insurance Company Ltd Republic
37 Rupali Insurance Company Ltd Rupali
38 Shadharan Bima Corporation SBC
39 Sena Kalyan Insurance Company Ltd Sena Kalyan
40 Sikder Insurance Company Ltd Sikder
41 Sonar Bangla Insurance Ltd Sonar Bangla
42 South Asia Insurance Company Ltd South Asia
43 Standard Insurance Ltd Standard
44 Takaful Islami Insurance Ltd Takaful Islami
45 Union Insurance Company Ltd Union
46 United Insurance Company Ltd United
List of Abbreviations and Accronyms
Gross Domestic Product GDP
Fixed Deposit Account FDR
Insurance Development and Regulatory Authority IDRA
Alliance for Financial Inclusion AFI
International Association of Insurance Supervisors IAIS
Tax Deduct at Source TDS
VAT Deduct at Source VDS
Know your Customer KYC
Central Rating Committee CRC
Central Eastern Europe CEE
vii
Table and Annexure
SL Subject
Page No
Chart 1 Growth of Gross Premium Income Adjusted with Inflation
8
Chart 2 Region Wise Life and Non-Life Premium Income -2019
8
Chart 3 Insurance Density and Penetration in Selected Countries 2019
9
Chart 4
Gross Domestic Product (GDP), Premium Income & Penetration in
Bangladesh (2015-19)
9
Chart 5 Population and Density of Insurance
10
Chart 6 Premium Income & Growth Rate of the Insurance Industry
11
Chart 7 Registration and Renual of Registration Fees Received by IDRA (2011-19)
14
Chart 8 Surveyor Registration License and Renewal Fees (2009-2017)
14
Chart 9 Agent License Fees and Renewal Fees (2011-19)
15
Chart 10 Inspection by IDRA in the various insurance companies during
2011-2019
17
Chart 11 Statement of Fine imposed by IDRA (2010-11 to 2019-20)
17
Chart 12 Income and Expenditure Statement of IDRA (2010-2011 to 2019-2020)
24
Chart 13 Gross Premium category-wise in Life Insurance Business
27
Chart 14
Premium income, Re-insurance, Net Premium Income and Retention rate
(2015-2019)
28
Chart 15
First Year and Renewal Premium with Group and Health Insurance
(2015-2019)
29
Chart 16
First Year and Renewal Premium without Group and Health Insurance
(2015-2019)
29
Chart 17 Market share of all the Life Insurers in the years 2016 to 2019
31
Chart 18 Top Ten insurers in terms of Premium Income
33
Chart 19 Number of Policy in Life Insurance Business
33
Chart 20 Life Fund and Growth Rate (2015-2019)
36
Chart 21 Life Fund of all the life Insurers from 2018 to 2019
37
Chart 22
Top ten Insurers in 2018 and 2019 in terms of Life Fund
39
Chart 23 Asset of Life Insurence in 2018 and 2019
40
Chart 24 Life insurer’s investment and Return on Investment from 2015 to 2019 41
Chart 25 Class wise Investment of Life Insurence (2018 -
2019)
41
Chart 26
Actual Management expenses, allowable limits, and excess
management expenses (2015 to 2019)
48
Chart 27 Class Wise Life Insurers Claim Settlement from 2015 to 2019
49
Chart 28 Settlement of Insurance Claim (2015-2019)
50
Chart 29 Class Wise Number of Initimated Claims from 2015 to 2019
52
Chart 30 Number of Claims Settled and Percentage of Claim Settlement
53
Chart 31 Net Policy holder Liability and Actuarial Surplus
53
Chart 32 Paid-
Up Capital in Life Insurance Business
54
viii
SL Subject
Page No
Chart 33
Number of Financial Associate (Agent) and Employer of Agent in Life
Insurance Business
54
Chart 34 Branches in Life Insurance Business from 2015 to 2019
55
Chart 35 Number of Staff in Life Insurance Business
55
Chart 36 Tax and VAT collection by Life Insurer from 2015 to 2019
56
Chart 37
Amount of Gross Premium and Growth Rate in Non-
Life Insurance Business
56
Chart 38 Direct Gross Premium Earned by SBC (2015-
2019)
57
Chart 39 Gross Premium Income of SBC including Reinsurance Business
59
Chart 40
Reinsurance Premium paid by SBC
59
Chart 41
Non-Life Insurers’ Gross Premium Income, Market Share and Growth
Rate
61
Chart 42 Segment-Wise Number of Policies (2015 to 2019)
62
Chart 43
Actual Management Expenses, Allowable Management Expenses, and
Excess Management Expenses from 2015 to 2019
63
Chart 44 Ratio of Management Expenses in Non-Life Insurance (2015-2019) 64
Chart 45
Premium, Management Expenses, Commission and Combined Ratio (%)
65
Chart 46
Concentration of Assets as at 31st December 2018 and -2019–Non Life
Insurance Business 66
Chart 47 Investment at the end of 2018 and 2019 in Non-Life Ins
urance sectors
69
Chart 48 Investment and Return on Investment (2015 to 2019)
71
Chart 49 Class wise Claim Ratios and Total Claim Ratios (2015-2019) 72
Chart 50 Class Wise Amount of Claim in Non-Life Insurance s
ector
73
Chart 51
Class Wise Gross Claim Settlement Amount in Non-Life sector (2015-
2019)
73
Chart 52 Class-Wise Claim Settlement Rates (%) from 2015 to 2019 74
Chart 53 Number of Claims in Non-Life Insurance Sector (2015-2019) 75
Chart 54
Number of Claim Settlement and Percentage of claim Settlement (2015-
2019)
76
Chart 55 Number of Staff in Non-Life Insurance Business 78
Chart 56 Amount of Paid Up Capital in Non-Life Insurance Business (2015-2019) 78
Chart 57 Stamp Duty Paid by Non-Life Insurers (2015-2019)
78
Chart 58 Tax and VAT paid by Non-life insurers (2015-2019)
79
Annexure
Annexure 01
List of Licensed Life Insurers and Listed with Stock exchanges 80
Annexure 02 List of Licensed Non-Life Insurers and Listed with Stock exchanges 81
Annexure 03 Life Insurance policies approved by IDRA 82
Annexure 04 Non-Life Insurance Products are approved by IDRA 90
Annexure 05 List of Acts, Rules & Regulations relating to Insurance of Bangladesh 91
Annexure 06
International training attained by IDRA staff from June 2017 to December 2019
93
Annexure 07 Gross Premium collection by the Non-Life insurers 96
Annexure 08 Asset Position of Non-Life insurers (2015-2019)
98
ix
List of Graph
SL Subject Page No
Graph 1 Insurance Penetration from 2015 to 2019 10
Graph 2 Insurance Density (Per Capita Gross premium) from 2015 to 2019 10
Graph 3 Premium Income & Growth Rate of the Insurance Industry 11
Graph 4 Total Asset and Asset Growth Rate of Insurance Industry in Bangladesh 12
Graph 5 Total Investment and Investment Growth Rate of Insurance Industry in
Bangladesh
12
Graph 6 Premium Growth Rate of Life Insurance (2015 to 2019) 28
Graph 7 Number of Inforce Policies from 2015 to 2019 34
Graph 8 Total Issued Policies in Life Insurance Sector (2015-2019) 34
Graph 9 Number of Lapsed Policies of Life Insurer from 2015 to 2019 35
Graph 10 Balance of Life Fund from 2015 to 2019 36
Graph 11 Growth of the Life Fund from 2015 to 2019 37
Graph 12 Top ten Insurers in 2018 and 2019 in terms of Life Fund 38
Graph 13 Life Insurers Assets’ Amount and Growth Rate from 2015 to 2019 40
Graph 14 Life Insurer’s Asset in Various Fields in 2018 41
Graph 15 Amount of Asset of Top Ten Insurers 42
Graph 16 Percentage of Investment in 2018 44
Graph 17 Percentage of Investment in 2019 44
Graph 18 Top Ten Insurers in terms of Investment in 2018 45
Graph 19 Top Ten Insueres in terms of Investment 46
Graph 20 Class-Wise Life Insurer’s Investment Return (2018-2019) 47
Graph 21 Excess Management Expenses in Life Sector from 2015 to 2019 48
Graph 22 Percentage of Management Expenses over Premium Income (2015 to 2019) 49
Graph 23 Proportion of Claim Settlement of Different Sections (2015 to 2019) 50
Graph 24 Percentage of Claim Settlement 51
Graph 25 Claim Amount, Claim Settle and Percentage of Claim Settlement from 2015
to 2019
51
Graph 26 Growth Rate of Non-Life Insurers’ Premium Income (2015-2019) 57
Graph 27 Class wise Business Growth of Non-Life Sector (2015 to 2019) 58
Graph 28 Sahre of various Segment in Total Non-Life Insurance Business (2015 to
2019)
58
Graph 29 Business Segment wise Retention Ragte in Precent from 2015 to 2019 59
Graph 30 Top ten Insurers in Non-Life Insurance Market from 2016 to 2019 60
x
SL Subject Page No
Graph 31 Non-life Insurers’ Portfolio Wise Policy Growth Rate in Percent (2015 to
2019)
62
Graph 32 Policy Portfolio wise Market Share in Non-Life Industry (2015-2019) 63
Graph 33 Changes of Management Expenses and Excess Management Expenses
(2015 to 2019)
64
Graph 34 Ratio of Management Expenses in Non-Life Sector (from 2015- 2019) 64
Graph 35 Asset in various classes from 2016 to 2019 67
Graph 36 Amount of Total Assets in Non-Life Insurance and Growth Rates (2015 to
2019)
67
Graph 37 Top ten Non-Life Insures’ Based on Assets 68
Graph 38 Share of Investmet in Different Sectors (2018 to 2019)
69
Graph 39 Amount of Investment and Growth of Investment in Non-Life Sector (2015-
2019)
70
Graph 40 Top Ten Insurers Share of Investment from 2017 to 2019 70
Graph 41 Ratio of Assets and Investment in Non-Life Sector (2015-2019) 71
Graph 42 Sub-class basis Claim Settlement Ratio in Non-Life Sector from 2015 to 2019
72
Graph 43 Class-wise Amount of Claims (2015 to 2019) 74
Graph 44 Segment wise Non-Life Insurer’s Total Claim (2015 to 2019) 75
Graph 45 Number of Branches of Non-Life Insurers (2015-2019) 76
Graph 46 Number of Agents in Non-Life Insurance from 2015 to 2019 77
1
Key Takeaways of Bangladesh Insurance
Total Number of Insurers: 79
Total Number of Life Insurers: 32 Private insurers and 1 State-owned Insurer
Total Non-Life Insurers: 45 Private, 1 State-owned insurer
Total Number of surveyors: 137
Total number of insured population: 13 million at the end of 2019
Current scenario of the insurance industry
Serial
Number
Important Indicators 2017 2018 2019
1
Gross premium (Life) BDT Crore 8198.46 8989.07 9599.63
2
Gross Premium (Non-life) BDT Crore 2981.43 3393.94 3789.78
3
Number of life policies 10951920
10716832
9741335
4
Number of non-life policies 2418630 2936818 3114063
5
Total Assets (life ) BDT Crore 37052.36 38687.51 41174.62
6
Total Assets (Non-life) BDT Crore 11124.29 11293.23 12074.70
7
Total Investment (Life) BDT Crore 29934.39 31080.24 33831.42
8
Total Investment (Non-life) BDT Crore 5854.93 5984.55 6324.67
9
Amount of Claim (Life) BDT Crore 6803.41 7332.86 7264.92
10
Amount of Claim (Non-life) BDT Crore 2713.54 3133.04 2563.66
11
Percentage (%) of claim settlement (Life) 81.59 88.88 89.55
12
Percentage (%) of claim settlement (Non-Life)
35.75 40.87 52.07
13
Number of Agents (Life) 381839 358604 395651
14
Number of Agents (Non-Life) 2581 2607 2679
15
Number of Branches (Life) 6647 6349 6146
16
Number of Branches (Non-Life) 1352 1367 1378
17
Number of staff (Life) 22530 23654 20453
18
Number of Staff (Non-Life) 16998 16786 17209
2
3
Chairman of IDRA
SL
Name Designation From To
1
M.Shefaque Ahmed, Actuary Chairman 27-Jan-2011
26-Jan-2014
2
Md. Fazlul Karim Chairman (in-charge) 29-Jan-2014
3-Mar-2014
3
Md. Quddus Khan Chairman (in-charge) 4-Mar-2014 8-Apr-2014
4
M. Shefaque Ahmed, Actuary Chairman 9-Apr-2014 8-Apr-2017
5
Gokul Chand Das
Chairman (Current Charge)
9-Apr-2017 22-Aug-2017
6
Md. Shafiqur Rahman Patwari Chairman 23-Aug-2017
25-Aug-2020
7
Dr. M. Mosharraf Hossain, FCA
Chairman (in-charge) 26-Aug-2020
26-Sep-2020
8
Dr. M. Mosharraf Hossain, FCA
Chairman 27-Sep-2020
14-Jun-2022
9
Mohammad Jainul Bari Chairman 16-Jun-2022
-
Members of IDRA
SL
Name Designation From To
Administration Wing
1
Md. Nurul Islam Molla Member 30-Mar-2011 11-Dec-2013
2
Md. Quddus Khan Member 27-Feb-2014 26-Feb-2017
3
Gokul Chand Das Member 1-Mar-2017 29-Feb-2020
4
Moinul Islam Member 15-Sep-2020
Life Wing
1
Dr. Md. Ziaul Haque Mamun Member 30-Jan-2011 31-Dec-2011
2
Sayed Ahmed Khan Member 29-Apr-2012 28-Apr-2013
3
Sultan-ul-Abedine Molla Member 4-Mar-2014 3-Mar-2017
4
Dr. M. Mosharraf Hossain, FCA Member 4-Apr-2018 25-Aug-2020
5
Quamrul Hasan Member 26-Jun-2022 -
Non-Life Wing
1
Naba Gopal Bonik Member 30-Jan-2011 29-Jan-2014
2
Zuber Ahmed khan Member 4-Mar-2014 3-Mar-2017
3
Md. Nazrul Islam Member 27-Jun-2022 -
Law Wing
1
Md. Fazlul Karim Member 4-Apr-2011 3-Apr-2014
2
Md. Murshid Alam Member 14-Sep-2014 13-Sep-2017
3
Borhan Uddin Ahmed Member 2-Oct-2017 11-May-2020
4
Md. Dalil Uddin Member 10-Jun-2020
4
Executive Directors
SL Name Designation From To
1 Dr. Md. Sk. Rezaul Islam Executive Director
(Additional Secretary)
4-Dec-2017 16-Aug-2020
2 Kazi Monower Hossain Executive Director
(Joint Secretary)
16-Jul-2017 22-Oct-2019
3 Khalil Ahmed Executive Director
(Joint Secretary)
4-Jun-2017 28-Jan-2020
4 Md. Husnul Mahmud Khan Executive Director
(Joint Secretary)
30-May-2017 4-Jul-2017
5 Ashraf Hossain Executive Director
(Joint Secretary)
24-Oct-2019 20-Dec-2020
6 Md. Sarwar Alam Executive Director
(Joint Secretary)
26-Jul-2020 13-Jan-2021
7
Md. Hiruzzaman,
NDC
Executive Director
(Joint Secretary)
17-Jan-2020 4-Mar-2021
8 SM Sakil Akther Executive Director
(Joint Secretary)
27-Sep-2020 20-Dec-2022
9 Md. Harun-Or-Rashid Executive Director
(Joint Secretary)
25-Feb-2021 -
10 Dr. Nazneen Kawshar Chowdhury Executive Director
(Joint Secretary)
12-May-2022
-
11 Mohammad Khalid Hossain Executive Director
(Joint Secretary)
13-Dec-2022
-
Directors
SL Name Designation From To
1 Md. Siddiqur Rahman Director
(Joint Secretary)
22-May-2019
10-Jun-2020
2 Dr. Md. Bashirul Alam Director
(Joint Secretary)
10-Aug-2017 24-Mar-2019
3 Farooq Ahmed Director
(Joint Secretary)
12-Aug-2017 22-May-2019
4 Md. Shah Alam Director
(Deputy Secretary)
2-Jul-2017
5 Abul Kasem Mohammad Fazlul Haque
Director
(Deputy Secretary)
11-Jul-2017 15-Oct-2020
6 Kamrul Hoque Maruf Director
(Deputy Secretary)
11-Jun-2017 9-Jul-2020
7 S. M. Tarique Director
(Deputy Secretary)
11-Jun-2017 13-Jul-2017
8 MD. Ariful Islam Director
(Deputy Secretary)
18-Sep-2019 17-May-2021
9 Md. Abdus Salam Soner Director
(Deputy Secretary)
3-Nov-2019 25-Apr-2022
10 Md. Jahangir Alam Director
(Deputy Secretary)
15-Jul-2020
11 Nazia Shirin Director
(Deputy Secretary)
16-Jul-2020 16-Jun-2022
5
12 Mohammad Shofiuddin Director
(Deputy Secretary)
13-Jul-2021 17-Jun-2022
13 Md. Abdul Mozid Director
(Deputy Secretary)
9-Jan-2023 -
14 Subir Chowdhury Director 10-Jan-2023 -
Deputy Director
SL Name Designation From To
1 Md. Solaiman Deputy Director 10-Jan-2023
-
Department wise staff
Administration Wing
SL
Name Designation Joining Date
1 Kazi Abdul Zahid Assistent Director 1-Sep-2001*
2
Md. Shamsul Alam Khan Assistent Director 2-May-2012
3 Tania Afrin Assistent Director 7-May-2012
4 Md. Ikhtiar Hasan Khan Assistent Director 14-May-2014
5 Tahmina Akter Officer 1-Aug-2011
6
Shamir Chandra Sarker Officer 3-Jan-2012
7 Hamed Bin Hasan Officer 2-May-2012
8 Amit Majumder Officer 2-May-2012
9
Md. Shuhel Rana Officer 2-May-2012
10 Mirza Abu Yosuf Officer 30-Dec-2015
11 Shusmoy Mondal Officer 23-Aug-2012
12 Amdadul Haque Program Operator 2-May-2012
13 Sufia Akther Program Operator 2-May-2012
14 Asraf Ali Computer Operator 20-Jun-2022
15 Alauddin Ahmed
Data Entry/ Control Operator
2-May-2012
16 Md. Masum Shahriar Data Entry/ Control Operator 15-Jun-2022
Life Wing
SL
Name Designation Joining Date
1 Md. Abu Mahmud Assistent Director 26-Aug-2012
2 Tanjid-Ul-Islam Officer 2-May-2012
3 Ruksana Asad Banna Officer 2-May-2012
4 Md. Asiqur Rahman Ujjal
Computer Operator 6-Jun-2022
5 Ashiful Haque Data Entry/ Control Operator 15-Jun-2012
6 Taslima Akter Data Entry/ Control Operator 27-Jun-2012
6
Non-Life Wing
SL
Name Designation Joining Date
1 Md Murshedul Muslim Assistent Director 2-May-1994*
2 Md. Delowar Hussain Bhuyan
Assistent Director 1-Nov-2001*
3 Kazi Sadia Arabi Officer 3-Jan-2012
4 Ala Uddin Officer 2-May-2012
5 Farjana Khaled Officer 22-Aug-2012
6 Syed Shariful Haque Officer 22-May-2014
7 Md. Shafiqul Islam Officer 24-Feb-2003*
8 Quazi Shabnam Ferdousi Officer 25-Jan-2015
9 Samia Ara Chowdhury Program Operator 2-May-2012
10 Bishwajit Roy Computer Operator 6-Jun-2022
11 Omar Bin Khalil Data Entry/ Control Operator 15-Jun-2021
12 Mst. Papiya Sultana Data Entry/ Control Operator 15-Jun-2021
Law Wing
SL
Name Designation Joining Date
1 Md. Rashidul Ahsan Habib Assistent Director 4-Sep-2011
2 Rumana Zaman Assistent Director 9-Nov-2014
3 Fahamida Sharwar Officer 3-Jan-2012
4 Md. Shamsul Alam Officer 2-May-2012
5 Md. Mostofa Al Mamun Data Entry/ Control Operator 3-Jan-2012
6 Md. Biplab Hosin Data Entry/ Control Operator 15-Jun-2021
*Appointment by the CRC
7
The world economy and insurance
The World economy
In 2018 total size of the global GDP was 86.201 trillion US dollars which was $81.182 trillion
in 2017. The same year, advanced economies especially the USA, Germany, Canada, United
Kingdom and Japan posted approximately 1.8% growth which is lower than the 2.3% growth
of 2017. The emerging-market comprising of India, China, Brazil, and Russia on the other
hand registered 4.5% growth in 2018 which contributed the most in the uptick of global
growth. Alongside in 2018, global trade of goods and services increased by 3.6% compared to
2017.
According to the Swiss Re, global direct premiums in 2018 outstriped 5 trillion dollar mark for
the first time reaching $5,193 billion which accounted for 6% of global GDP. The growth rate
of 2018 was positive in both nominal and real terms but less attractive than that of 2017. The
low growth rate in 2018 compared to 2017 is attributed to low growth in the life sector. Total
life insurance premium income was 2,820 billion in 2018 and the life sector accelerated only
by 0.2%. China is the largest life insurance market in the world. Low growth in China was the
major cause of decreasing life premium growth as well as growth of overall global premiums.
Non-life sector witnessed an upsurge of 3% total premium income reaching 2,373 billion. This
growth was contributed by a 7.1% premium acceleration in the Emerging market and a 6.4%
growth in the Asia Pacific region. In 2018, 54.30% of the total premium income was generated
from life portfolios whereas the rest was produced by non-life insurers.
World insurance market showed remarkable growth in 2019 reaching a $6 trillion premium
mark. Out of 6,292.60 billion dollar direct premiums 46.34% were generated from the life
sector and the rest 53.66% from the non-life sector. In 2019 total premium income in the life
and non-life sectors were 2,916.27 billion and 3,376.33 billion dollars respectively. The
emerging market witnessed a 6.6% growth in 2019 whereas the advanced market managed to
grow by 2.1%. In 2019 overall premium growth declined to 2.2%.
Position of Bangladesh in the World Insurance Market
In 2019 real premium growth rate of Bangladesh was 3.1%. In contrast, the real global
premium growth was 2.9% (Chart 1). In total global premium income, the life-sector
contributed 46.30% and the non-life sector contributed the rest. In Bangladesh however,
overall premium income is dominated by the life sector. In 2019, 70% of total premium
income came from the life sector and 30% came from the non-life sector.
The Swiss Re report shows that Bangladesh ranked 55th out of 88 countries in 2019 in terms
of life insurance business. When the global premium growth was 2.2% in 2019 Bangladesh
achieved a 1.3% real growth in life insurance premium.
8
Chart 1
Growth of Gross Premium Income Adjusted with Inflation -2019 (in percentage)
Region/Country Life Non-life Life and Non-lfie
Advanced Market
1.3 2.7 2.1
Emerging Market
5.6 7.7 6.6
Asia
2.6 7.6 4.4
India
7.3 5.7 6.9
Bangladesh
1.3 7.4 3.1
World
2.2 3.5 2.9
Source: Swiss Re, Sigma no 4/2020
In 2019 growth rate of the non-life sector was 7.4%. At the same time, the global growth rate
of the non-life sector was 3.5% (Chart-1). In the world market, Bangladesh placed 86th in the
non-life sector. Whereas in the life sector Bangladesh placed 68 out of 88 countries according
to Swiss re-report.
Chart 2
Region Wise Life and Non-Life Premium Income -2019 Billion Dollar
Region/Country Life Non-Life Life and Non-Life
Advanced Market
2298.7
(44.80)
2832.22
(55.20)
5130.92
(100.00)
Emerging Market
617.57
(53.16)
544.11
(46.84)
1161.68
(100.00)
Advanced Asia-Pacific
645.16
(69.00)
289.20
(31.00)
934.36
(100.00)
Emerging Asia-Pacific
469.03
(57.80)
342.02
(42.20)
811.05
(100.00)
India
79.67
(74.90)
26.64
(25.10)
106.31
(100.00)
Bangladesh
1.03
(70.00)
0.44
(30.00)
1.47
(100.00)
World
2916.27
(46.30)
3376.33
(53.70)
6292.60
(100.00)
Source: Swiss Re sigma 4/2020, Note: Percentage shows in bracket
Various reasons are responsible for low rate of penetration and insurance density. In
Bangladesh, the insurance market lacks diversified products. Agriculture insurance, universal
health insurance, catastrophic insurance, and insurance for passengers are absent which
contracted the supply side, what is more, the demand for insurance is very low compared to
other products in the financial system as image crisis is also a responsible factor. Out of 167
million population, only 13 million have an insurance policy of different kinds. Besides that,
lack of proper reviewing systems of the products, absence of innovative culture in designing
products, and limited scope of distribution channel including digital platform are other causes
that hinder the insurance sector to move forward in the right direction.
9
Insurance Penetration and Density in Bangladesh
Insurance penetration and Insurance Density are the key indicators widely used to understand
the country’s overall development of insurance sector. Insurance penetration indicates the
percentage of total premium income over GDP and Insurance Density shows per capita
premium expenditure. Insurance penetration was 0.55% in 2017 which increased a bit and
reached 0.57% in 2018 and in subsequent year’s density fell to an all-time low of 0.49%.
Insurance density was $8 in the year 2017 which increased by $1 in 2018 and remained the
same in 2019 (source: swiss re, sigma report) (Chart-3). Density and Penetration rate,
calculated based on the data collected from insurers, have shown in chart 4 and 5 in Figures 1
and 2.
Chart 3
Insurance Density and Penetration Rate in Selected Countries 2019
Country GDP
Rank
Premium
Rank
Premium
(In USA
Million)
Market
Share(%)
Penetration (%)
Density
(USdollar)
Growth(%)
USA 1 1 2460123 39.1 11.43 7495 3.9
India 6 11 106307 1.69 3.76 78 9.2
Malayasia 36 33 17150 0.27 4.72 536 3.3
Philipine 37 46 3195 0.1 1.72 57 3.7
Banglades
h
43 69 1475 0.02 0.49 9 7.6
Srilanka 65 75 1090 0.02 1.25 51 -2.4
Vietnam 40 45 7368 0.12 2.24 76 21.4
Source: Swiss re, sigma no 4/2020
Chart 4
Gross Domestic Product (GDP), Premium Income & Penetration Rate in Bangladesh (2015-2019)
Year
GDP(Current price in
crore taka)
Gross premium income
core taka
Penetration in percent
Life Non-Life Life Non-
Life
Life and
Non-Life
2015
1515802.30 7316.09 2643.01 0.48
0.17 0.66
2016
1732863.90 7588.45 2772.88 0.44
0.16 0.60
2017
1975815.20 8198.46 2981.43 0.41
0.15 0.57
2018
2250479.30 8989.07 3393.94 0.40
0.15 0.55
2019
2542482.60 9599.63 3789.78 0.38
0.15 0.53
Source: GDP-world Bankm Premium-IDRA
10
Graph 1
Insurance Penetration form 2015 to 2019
Chart 5
Population and Density from 2015 to 2019
Year Population
(Core)
Insrance Density in taka Density in
the USA dollar
Life Non-Life aggregate
2015
16.12 453.85 163.96 617.81 7.95
2016
16.30 465.69 170.17 635.85 8.12
2017
16.47 497.87 181.06 678.93 8.58
2018
16.46 546.12 206.19 752.31 8.97
2019
16.75 573.20 226.29 799.49 9.47
Source: Population-Bangladesh Bureau of Statistics and Premium Income-IDRA
Graph 2
Insurance Density (Per-capita gross premium) from 2015 to 2019
11
An Overview of Bangladesh Insurance Industry
Despite having various challenges overall insurance premium income was expanded. Without
considering the inflationary impact the growth rates were 10.76% and 8.13% in the years 2018
and 2019 respectively, the growth rate was 7.90% in 2017. In the year 2018 and 2019 gross
premium income were BDT 12383.01 crore and BDT 13389.41 crore respectively and in 2017
the premium income was BDT 11,179.89 crore.
Chart 6
Premium Income and Growth Rates (2015-2019) (crore taka)
Year Gross Premium (Crore taka) Growth in precent
Life Non-life Lfie and Non-Life Life Non-Life Life and Nonlife
2015
7316.09 2643.01 9959.10 3.39 8.07 4.59
2016
7588.45 2772.88 10361.33 3.72 4.91 4.04
2017
8198.46 2981.43 11179.89 8.04 7.52 7.90
2018
8989.07 3393.94 12383.01 9.64 13.84 10.76
2019
9599.63 3789.78 13389.41 6.79 11.66 8.13
Source: Premium Income collected from all the insurers.
Graph 3
Premium Income and Growth in the Insurance Industry (2015-2019)
IDRA put tremendous effort in the year 2017 to 2019 to settle insurance claims publicly. In
response to that effort, some of the insurers settled insurance claims in festive mode as a result
premium income accelerated in the life insurance sector. High officials of IDRA attended in
these formalities to motivate insurers and insured both. In the year 2017, the growth of the life
and the non-life insurers’ premium income outstrips the expected growth rates which were
8.04% and 13.84% respectively. In 2018 growth rates were also very high in both the life and
non-life sector. The life sector sealed 6.79% growth and the non-life sector managed to
achieve an 11.66% growth in 2019. (Chart-6 and Graph-3).
12
Lion portion of total premium income comes from the life sector and most of the insurance
policies are long-term in nature, therefore the size of life sectors’ assets is bigger than that of
non-life sector. At the end of 2018, the size of life insurers’ assets was BDT 38,688 crore
which augmented by 6.43%, and reached BDT 41,175 crores at the end of 2019. On the other
hand, the size of total assets in the non-life insurance sector was BDT 11,293 crore at the end
of 2018 which increased by 6.92% and extended to BDT 12075 crore at the end of 2019. The
sum of total assets of the entire industry was grown by 3.75% in 2018 which accelerated
further by 6.54% in 2019 (Graph 4).
Graph 4
Total Asset and Growth Rates of Insurance Industry in Bangladesh (2015-2019)
Source: data collected from different insurers.
Graph 5
Total Investment and Growth Rates of Insurance Industry in Bangladesh (2015-2019)
Source: data collected from different insurers.
13
There was up-and-down in the investment landscape as claim settlement and management
expense reduce the investment, conversely investment income and premium income accelerate
the investable amount. In 2017 industry’s aggregate investment grew up by 8.20% which took
a nosedive and fell to 3.56% in 2018 and again raise to 8.34% in the year 2019. In terms of
monetary value total assets accounted for BDT 35,789 crores at the end of 2017 which
accelerated in the subsequent two years and reached BDT 40,156 crore at the end of 2019.
75.41% of the total assets of the industry were invested in different avenues as prescribed by
investment regulation.
Activities of Insurance Development and Regulatory Authority in 2018 and 2019
Prime Minister Sheikh Hasina and Insurance Sector
In the tenure of Prime Minister Sheikh Hasina government, the Insurance act 2010 came into
effect demolishing the old insurance act 1938. She formed IDRA on 18th March 2010
enacting the Insurance Development and Regulatory (IDRA) Act-2010. Insurance
development and regulatory authority was formed with 4 members and Chairman according to
IDRA act 2010. With the joining of the Chairman and two members, IDRA started its function
on 27th January 2011. At present existing workforce comprises of Chairman, four members,
three executive directors, two directors, and 72 staff of different grades.
Sheikh Hasina is the longest-serving prime minister in our country. People call her
‘Deshratna’, ‘Jananetry’ because of her overarching contribution to the development of
Bangladesh. She is also the architect of digital Bangladesh. The insurance sector was
neglected for a long time but the Awami government made a tremendous and visible effort for
the development of the insurance sector when she became prime minister for the second time.
His thoughtful direction and timely measures played an enormous role in the development of
the insurance sector.
The insurance sector is playing important role in the economy as a result of timely initiatives
of the prime minister. Owing to her direction, IDRA has been trying to introduce a new
product in health insurance, introduced new products for expatriate workers, and enhanced
awareness about insurance among mass people. Today Bangladesh insurance industry is well
capable of covering multibillion-dollar projects and some of these are Bangabandhu Satellite,
Padma Bridge, Bangabandhu Tunnel, Ruppur Atomic Energy Plant.
National Insurance Policy, 2014
The government published National Insurance Policy in 2014 through a gazette to accelerate
the progress and development of the insurance sector. National Insurance Policy-2014 has 50
guidelines out of which 12 have been implemented and the IDRA has taken various initiatives
to implement the rest of the guidelines.
Authority Meeting
From inception to the end of 2019 total 126 authority meetings took place under the section 13
of the insurance Development and Regulatory Authority Act 2010. There were 1,173 policy
decisions were taken in these meetings and 98 percent of total decisions were implemented to
the end of 2019.
14
Registration of Insurance Company
32 life insurers and 45 non-life licensed insurers were in the operation of the insurance
business at the end of 2019. IDRA issued a license during 2019 to Asta life to conduct a life
insurance business. From 2013 to 2018 14 life insurers and 2 non-life insurers’ licenses were
issued. Detailed information relating to the registered insurers, their paid-up capital and part of
capital collected from the capital market through market listing has shown in annexure-1 and
annexure -2. IDRA analyzes the audited income statement before renewing the license. Chart-
7 shows the Fiscal year to Fiscal year basis registration income. Registration income in FY
2018-2019 and FY 2019-2020 were taka 105.67 and taka 114.53 million respectively.
Chart 7
Registration and Renewal of Registration Fees Received by IDRA (2011-19) (Million Taka)
FY Life Non-Life Total Fees
2010-2011
0 0.42 0.42
2011-2012
192.91 52.28 245.19
2012-2013
247.46 77.82 325.28
2013-2014
218.77 68.24 287.01
2014-2015
219.23 5.50 294.73
2015-2016
234.15 78.08 312.23
2016-2017
242.26 86.60 328.86
2017-2018
230.23 110.26 340.49 (Unaudited)
2018-2019
78.24 27.43 105.67(Unaudited)
2019-2020
84.45 30.08 114.53(Unaudited)
Insurance Surveyors
At the end of 2019 total number of 137 surveyors were in operation out of which 94 operate in
Dhaka, 39 in Chittagong, 3 in Khulna, and 1 in Rajshahi. Insurance surveyor is providing
their services in 7 exclusive domains these are Fire, Motor, Marine-Cargo, Aviation,
Engineering, and Miscellaneous. Their functions have been framed by the Regulation which
was promulgated in 2018. IDRA received BDT 0.53 million in FY 2019-2020 from 137 active
surveyors (Chart-8).
Chart 8
Surveyor License Registration and Renewal fees (2011 to 2019)
Year BDT Million Taka
2010-2011
0.20
2011-2012
0.59
2012-2013
0.54
2013-2014
0.56
2014-2015
0.54
2015-2016
০.৫৪ 0.54
2016-2017
0.52
2017-2018
0.55 (Unaudited)
2018-2019
0.59 (Unaudited)
2019-2020
0.53(Unaudited)
15
Agent License fees
IDRA issues agent license for the insurer based on the application received from the insurer. A
total number of 4,48,696 agents license to the 33 life insurers and 2478 agents license to the
45 non-life insurer were issued by IDRA in FY 2019-2020 and earned a total taka 5.96 million
(chart-09).
Chart 9
Agent License Fees and Renewal Fees (2011-19) (Million Taka)
Years Agent Fees (Life) Agent Fees (Non-Life) Total Agent Fees
2010-2011
4.31 0.25 4.56
2011-2012
19.67 1.98 21.65
2012-2013
11.03 2.26 13.26
2013-2014
17.89 0.45 18.43
2014-2015
23.16 .44 23.60
2015-2016
10.13 0.52 10.65
2016-2017
8.544 0.41 8.95
2017-2018
7.16 0.36 7.52 (Unaudited)
2018-2019
8.12
.৪৮
8.60 (Unaudited)
2019-2020
5.61 0.34 5.95 (Unaudited)
According to subsection 1 of section 58 of the insurance act 2010, No person shall pay or
contract to pay any remuneration or reward whether by way of commission or in any other
name for soliciting or procuring insurance business in Bangladesh to any person except an
insurance agent or an employer of agents or broker.
Agents receive a commission in return for procuring insurance business. Paying excess
commission to the agent is disastrous for the insurers as it augments the management
expenses. IDRA has taken various initiatives to reduce the commission and to retain
management expenses within the level prescribed by the act.
Approval of Life Insurance Product
IDRA approved different types of life insurance products from inception to the end of 2019
under section 16 of the insurance act 2010. Approved products are in different areas for
example various types of microinsurance, deposit insurance, Pension insurance, Accidental
Life Insurance as a rider (ADAB) and Permanent Total Disability Insurance (PDAB) and
Health Insurance, Children Protection Insurance, Hajj Bima, Denmohor Bima, Education
Expense Insurance Plan, Mortgage Assurance Plan, Family Protection Plan and SME Loan
Protection Plan (Annexure-3).
Besides that, to bring the expatriate workers, particularly those who are working in the Middle
East, under insurance coverage insurance benefit has been provided by the Ministry of
Expatriate and Welfare and Jiban Bima Corporation. IDRA launched a flagship education
insurance program through its own finance as a pilot basis with a formal brand name which is
Bangabandhu Education Insurance. Another insurance program namely Bangabandhu Surakha
Bima was framed and designed by IDRA. Surakha Bima is being marketed by Shadharan
Bima Corporation.
16
Approval of Non-Life Insurance Products
Central Rating Committee (CRC) was formed on 6 may of 1990 under section 3bbb of the
insurance act 1938 to determine the rate of the product, and set terms and conditions relating
to the products of non-life insurers. Subsequently, after replacing the insurance act 1938 by
2010, CRC acted on these activities and recommend and place these products before the
authority of the IDRA for the final approval under section 17 of the insurance act and section
15 of the IDRA act 2010. Based on the recommendation authority approves various new
products, premium rates along with terms and conditions. Based on the recommendation of
CRC authority has approved a revised tariff rate in recent times for non-life insurers and
published it in the website of IDRA that had revised in the year 2000 last time. At the end of
year 2019 CRC conducted total 168 meeting. Basing on their recommendation IDRA
approved various products. A detailed list is attached in Annexure-4.
Coordinating Meeting
IDRA collects key information from insurers and present before all Chief Executive Officers
in the form of PowerPoint. This platform has been designed to glean various opinions of the
different participants which ultimately help IDRA in framing various directives.
Promulgating Rules and Regulation
Since the inception of IDRA to date, 9 Rules and 15 Regulation have been published as gazate
under the Insurance Act 2010 and Insurance Development and Regulatory Act 2010
(Annexure-5). Besides, the Corporation act, of 2019 was passed by the government in 2019.
Other rules and regulations are in a different stage of implementation.
Inspection
IDRA conducted hundreds of onsite inspections from 2011 to 2020, see details in chart 53.
The main objective of the onsite inspection is to inspect whether insurers operate insurance
business within the purview of the insurance act or not. Besides that, in some cases,
inspections are dedicated to finding out whether or not insurers underwrite policies without
receiving any premium or receiving less premium or paying any excess commission in the
case of procuring insurance business. Another important objective of onsite monitoring is to
find out any non-compliance with regards to rules, regulations, or circulars of IDRA
applicable for the insurers. In recent times anti-money laundering obtains high importance
around the globe including in Bangladesh. In our country, we have anti-money laundering
laws. Bangladesh Financial Intelligence Unit (BFIU) is the custodian of the anti-money
laundering act. BFIU also inspects to find out breaches of anti-money laundering law. IDRA
resolves the observation of the inspection report through a hearing where insurers are given
equal opportunity to defend themselves.
17
Chart 10
Inspection by IDRA in the various Insurance Companies during 2011 - 2019
Year Number of Inspection
2011
7
2012
143
2013
20
2014
16
2015
90
2016
24
2017
0
2018
26
2019
30
Imposing Penalty
IDRA sends inspection team to different carriers on regular basis to ensure discipline in the
industry. IDRA framed an inspection manual and uploaded it to the website. If any
indiscipline finds in the inspection report IDRA calls the insurer for a hearing and asks them to
provide a showcase before the authority. If any allegation is proven in the hearing then IDRA
fines the respective insurer under the insurance act 2010 and provides befitting direction and
advice for the future. From 2011 to 2019 IDRA conducted a total number of 340 inspections
and imposed a fine of taka 197.46 million (Chart-11).
Chart 11
Statement Fines Imposed by IDRA (2010-2011 to 2019-2020) (Million Taka)
FY Life Non-Life Total
2010-2011
0.10 1.57 1.67
2011-2012
9.48 13.87 23.53
2012-2013
2.88 8.65 11.53
2013-2014
3.73 4.05 7.78
2014-2015
3.36 11.08 14.44
2015-2016
4.03 45.25 49.28
2016-2017
3.63 33.99 37.62
2017-2018
2.42 19.37 21.79 (Unaudited)
2018-2019
0 16.05 16.5 (Unaudited)
2019-2020
8.1 5.6 13.5 (Unaudited)
Remarkable steps has taken by IDRA
•
IDRA mandated to make sure the policyholder's phone number in the policy form of
KYC for future communication. It enabled insurers to disseminate information
regularly in the event of any development.
•
IDRA directed all the insurers to set up hotline numbers helping policyholders to
provide policy-related information, take claim-related complaints and resolve the
complaints on a fast track basis.
18
•
Due to the initiative of the Neuro Development Trustee Board under the Ministry of
Social Welfare IDRA designed a special insurance policy for the Neuro Development
Disabled people.
•
IDRA issued a circular with the directives that no agent license will be issued without
proper training.
•
To enhance a positive image among the masses and to enhance insurance literacy, a
large-scale promotional initiatives have been taken. As a part of the promotional
activities, various workshops, and meetings have arranged with stakeholders.
•
IDRA developed a dynamic website and uploading a wide range of information to
facilitate the stakeholders. IDRA updates the website regularly with recent information
so that stakeholders get informed about the recent development. Moreover, the
claimant could complain through this website filling a form.
•
Insurers were directed to inform IDRA in case of receiving any complaint from
stakeholders, policyholders, or shareholders within two working days.
•
IDRA directed all insurers to submit meeting minutes of the Audit Committee, Claim
committee and Board meeting minutes to the authority.
•
Insurers were directed to accord prior approval submitting all relevant information in
case of procuring or selling land, building, flat, and other fixed assets.
•
In a drive to accelerate the fast approval process, IDRA made a checklist of
information to attach with the application so that total file processing time reduces.
•
Insurers were ask to conduct all the transactions above the limit of taka 10,000 through
the banking channel.
•
IDRA prepared a citizen charter which was uploaded to the website.
•
IDRA always persuade insurers to innovate new product taking into account market
demand.
•
IDRA conducts special audits by chartered accountant firms regularly of the annual
accounts of the insurers. The terms of reference set by IDRA to conduct the special
audit.
•
IDRA arranges coordinating meetings with the Managing Directors and Chief
Executive officer every three months intervals to discuss the next course of action and
to give direction to the insurers.
Significant steps taken for the non-life insurance sector
•
The direction was given to stop tariff rate violations.
•
The direction was given to stop accrued business.
•
Imposing restrictions the sales of insurance business to the director's own business
firm.
•
In line with insurance act necessary directives were made so that one director cannot
hold other financial institutions’ directorship simultaneously. Directors will not be able
to work as directors at other financial institutions simultaneously.
•
Revising the surveyor’s levy and others expenses.
•
Directed non-life insurers to submit reinsurance-related information.
•
The direction was given to non-life insurers to submit a quarterly business statement to
IDRA.
•
IDRA eliminates the practices of a percentage-based salary structure for the regular
office staff instead of agents.
19
Significant steps taken for the life insurance sector
•
In a drive to reduce the lapse ratio of a life insurer, a circular was issued with necessary
instructions.
•
A revised commission schedule was issued.
•
Board and management authorities of vulnerable insurers who incurred excess
management expenses over the allowable limit were called several times to show cause
before the authority.
•
IDRA restructured the organogram of commission-based manpower.
•
In an attempt to continuous monitoring of life insurers’, investment portfolio, life
insurers were directed to submit investment returns quarterly.
•
The insurer has been submitting a closing business statement since 2012.
•
To increase the number of actuarial staff and to sensitize the insurer about the actuarial
issues life insurers were asked to set up actuarial departments irrespective of their size
and date of inception.
Innovation Team
An innovation team, comprised of three members, led by a Director, has been working since
2017. The innovation team is mainly focusing on introducing innovative ideas to accelerate
the business growth, ease of doing business, grievance redress system, and reduce the non-
compliance. This very team was trained several times by the expert of `Access to
Information’, a dedicated team of Prime Minister Office, on ease of doing business and
innovation concept. To introduce innovative ideas this innovation team is working
relentlessly. Some ideas earned the attention of the authority, these ideas are (1) affixing
sticker in the car with the insurer's hotline number so that anyone can trace the car where it has
been insured (2) receiving complaints from policyholders about an insurance claim.
Policyholders who are living in a remote corner of the country can also have easy and fast
access to this system.
Bangladesh Insurance Sector Development Project
Government-approved BDT 632 crore worth Bangladesh Insurance Sector Development
Project, where government contribution is BDT 118.50 crore and world Bank loan is BDT
513.50 crore, which was launched finally in 2018 now it is functional. Insurance Development
and Regulatory Authority, Shadharan Bima Corporation, Jiban Bima Corporation, and
Bangladesh Insurance Academy are the direct beneficiaries of this project. The main purposes
of this project are to enhance the technical capacity of the beneficiary organization and
introduce an automation system in IDRA to monitor insurers. Once, all insurers will come
under an automated system it shall enable IDRA to solve various problems which may reduce
the grievance of policyholders and increase the revenue of the government.
Arranging Insurance Fair
Bima Mela is a kind of insurance awareness event that has been taking place in the divisional
city since 2016. It is a joint production of IDRA, BIA, and BIF. The first Bima Mela was held
in Dhaka in 2016, the second one in Sylhet in 2017, the third one in Chittagong in 2018, and
20
the last one in Khulna in 2019. Major objectives of Bima Mela are creating awareness of the
masses in festive mode, settle insurance claims, promoting the different products of the
insurers, and sharing ideas and values directly with the participant.
Digital World Fare
Bangladesh Government organized Digital World Fare to show off the digital advancement of
the different sectors in which IDRA participated under the banner of the Financial Institution
Division. IDRA received a prize for active participation and showcasing its digital services to
the participant.
Participation in Development Fairs held at all District and Upazila level
It was a magnificent effort of the government to display the different achievements to the
people across the country. This fair was held in every district across the country. IDRA
handed over the responsibility to different insurance companies to ensure the presence of the
insurance sector in every district. The motive is not commercial rather showing the sectorial
development among the gathering. IDRA was able to exhibit success and offering of insurance
among the masses successfully.
Enhancing trust among the common people
Trust in insurance has reached a crucial stage and this has been declining. Because of the
inability of paying the claim in time and the proper way a kind of distrust grows among
common people and the trend is worsening every year which results in the insurance sector
falling behind other sectors including banks and the gap has been widening. IDRA as supreme
authority and custodian of this sector has addressed this problem properly and taken the
following steps to come out from this crisis:
1. IDRA set up five member’s special committee led by a member to resolve all
complaints that are being received by IDRA on a daily basis.
2. IDRA instructed insurers to upload product-related short video clips and the list of
unsettling insurance claims on their website.
Due to the constant and unrelenting effort of IDRA claim settlement rate increased a bit. In
2018 total intimated claim amount was taka 10465.90 crores out of which 88.88% of total
claims were settled by all life insurers. In the non-life sector, this rate was 40.87%. In 2019
total claim settlement rates were 89.55% and 52.07% in the life and non-life sectors
respectively.
Actions against Anti-money Laundering
IDRA and Bangladesh Financial Intelligence Unit (BFIU) are working together to combat
money trafficking and terrorist financing. IDRA is providing various directions to the insurers
in combating money trafficking and terrorist financing regularly. Dedicated summit held in
Coxs-Bazar in the last three consecutive years with Chief Anti Money Laundering Officer
(CAMELCO). CAMELCO plays a vital role in creating a culture within the organization
combating money laundering threats. Becasuse of the demand of the National Insurance
21
Policy-2014 IDRA has formed Financial Intelligence Cell. BFIU designed a new kind of
Know Your Customer (KYC) form keeping in mind the money laundering threats for the
insurer. IDRA has been observing very carefully the implementation of such instruction while
issuing an insurance policy. FIC is working with BFIU very closely.
Implementation of National Integrity Strategy (NIS)
Integrity in all aspects is very crucial for long-term sustainability and sound corporate
governance. Considering the importance of NIS, IDRA has a committee to implement NIS in
the insurance sector. When the first time the concept of the National Integrity Strategy was
developed IDRA called all the CEOs and MDs in a meeting and shared the true values of the
NIS. According to the decision that came from this meeting a committee was formed, this very
committee submits reports in regular intervals relating to NIS to the authority. Taking the
government directions as standard, IDRA evaluates the level of implementation and takes
required steps in case of any deviation.
Introducing the Bengali Language in all aspects
Insurance Development and Regulatory Authority made it effective to use the Bengali
Language in official purpose as the court order in response to the writ petition number
1996/2014 which was mostly inspired by clause three of the constitution of Bangladesh and
the Bengali Language Circulation Act-1987. Besides that, authority is using the Bengali
language as the medium of communication in all domestic purposes except a few cases. For
the sake of policyholders’ better understanding, all the insurers were directed to prepare
proposal form and policy documents in Bengali and English may be used along with Bangla.
Membership of AFI and IAIS
IDRA is a member of the Alliance for Financial Inclusion (AFI) and the International
Association of Insurance Supervisors (IAIS). Being a member of these two international
organizations IDRA gets a scope of receiving international experience on contemporary
issues.
Formulation of Third Capital Market Development Program outline
In formulating the Third capital market development program Asian Development Bank
appointed The Aris Group and The Capital Group. IDRA met with them several times.
Decisions of the meeting reflected in various rules and regulations for what they were
appointed.
Digitalization in Insurance Sector
Information asymmetry at the customer end is a major problem in the insurance sector.
Policyholder wants to know various information for example: Whether the premium income
deposited properly? When to deposit the next premium? What they should do if the deposit
slip lost for some unexpected reasons and many more. When they do not have such
information dissatisfaction and fear grow among them which results in some policyholders do
not continue the policy in a logic to prevent more losses. Those who continue the policy
22
remain in uncertainty. Taking all these facts into consideration IDRA inducted a project
namely Unified Messaging Platform in 2019. State of the art technology-based platform
collects 27 types of information of the policyholders including name of the customer, phone
number of the customer, details of the premium deposits, duration of the policy. Using these
information policyholders are getting SMS upon deposit of premium, sending premium
reminder message, SMS for accrued premium and electronic premium receipt.
Workshop/ Seminar
IDRA arranged various workshops, seminars, and training programs in 2018 and 2019 to
enhance the training of its staff or to share the knowledge with the insurers. IDRA arranged
different workshop programs on agent license regulation, Bancassurance, Insurance awareness
program, increasing efficiency of the insurer in the underwriting process, innovation, ease of
doing business, UMP, Using technology to regulate the insurer, etc. Besides that various in-
house short training programs are also arranged by IDRA for the capacity building of its staff.
Apart from that, Bangladesh Insurance Association arranged an international program titled
‘International Micro Insurance Summit’ with participation from home and abroad. IDRA staff,
CEO, and different level of staff of the insurers are among the participant in these seminars,
workshops, and training programs.
Meeting Regarding Settlement of Insurance Claim
IDRA generally sends all the complaints of the claimant to the insurer with proper direction.
What is more, considering the severity IDRA sometime calls for the insurer's management
authority for hearing. Following this process, IDRA resolved 43,746 number of application of
different life insurers in 2019. In the same way, the total number of complaints was 38 against
non-life insurers out of which 28 were mitigated following due process. A dedicated and
independent committee was formed headed by a retired justice of the Supreme Court including
one representative (member) from IDRA as per the requirement of section 73 of the insurance
act of 2010 and Dispute Mitigation Regulation-2012. From 2015 to 2019 DRC resolved 29
complaints out of 32 complaints in 112 meeting.
Financial Stability Report
IDRA collects financial data from the insurer to prepare financial stability report which
includes premium income, assets, investment, and the amount of fixed deposit. This report
sends periodically to the Bangladesh Bank.
Collecting Financial Information from the insurer
Analyzing the various indicators is one of the core tasks of IDRA for which IDRA relies on
the data of the insurer. IDRA collected various kinds of information from 2009 to 2019 which
includes assets, insurer class-wise premium income, comprehensive income, various ratios
such as retention ratios, claim ratio, combine ratio, management expenses, the yield on
investment, and life fund.
23
Insurance for Expatriate Workers
Every year nearly 1 million workers go abroad with work visas, particularly in the Middle
East. They have to work in very adverse working environment and face risks of exploitation,
discrimination, abuse, and insufficient services to protect their right. Some of them die as a
result of working in a risky job and some of them undergoes mental trauma as the condition
are opposite to that of home conditions. Such dire conditions of workers earned the attention
of the Prime Minister. Because of her order Ministry of Expatriate came forward with a plan
to introduce insurance for expatriate workers. IDRA along with MOEA formulated an
Insurance Policy for Expatriate Workers under which two separate insurance plans were also
designed by the professional actuary. Out of two insurance products first one offers taka
200,000 insurance coverage against the premium of taka 990 and the second one is a little
higher in terms of benefit and premium which offers 500,000 taka insurance benefits against
premium of BDT 2475. In case of death, policyholders will receive the full amount of sum
assured value whereas, in the event of minor injury or major organ lose such as eye, hand, legs
insured will receive partial compensation according to severity.
Various Ongoing Development Tasks
In light of the different instructions of Honorable Prime Minister Sheikh Hasina and Finance
Minister IDRA has undertaken various tasks that are under process. These important tasks are
Agriculture insurance for Haor areas, Insurance for Neuro Disabled persons, Insurance for
athletes, Surokhaa Bima for personal safety, Insurance for Railway Passengers, Mandatory
Insurance for Building, scholarships Program for Actuarial students, Listing insurer in the
capital market, initiating Bancassurance distribution channel. If these initiatives can be
fulfilled insurance sector can foster its growth.
Appointment of Chief Executive Officer
According to section 80 of the insurance act 2010 and the regulation of CEO appointment and
removal IDRA gives necessary approval upon analyzing the application of the insurers. In
2019 IDRA approves 11 and 7 CEO for the life and non-life sectors respectively.
Approval of Branch Opening
It is required to have outlets across the country to sell insurance products. The Agency system
is still the lifeline for the insurer and the branch act as a nodal point for the agents. Insurers
apply for the approval of branch license to IDRA following section 14 of the insurance act
2010 and the two regulations namely Regulations of Branch set up, 2012 and Regulation of
Branch set up fees. Till 2019 101 branches for life insurers and 365 branches for non-life
insurers were approved by IDRA.
Income and Expenditure of IDRA
Section 16 of the IDRA act 2010 clearly says the IDRA’s sources of income. The sources of
income are as follows:
24
1. Grants made by any local authority or any other person or organization;
2. Loans received by the authority;
3. Sum of money received from insurers as fees for registration and renewal thereof;
4. Sum of money received as fine which is imposed by the authority on insurers;
5. A specified part of the income of the insurance companies, as determined in a
prescribed manner;
6. Fees received from the appointment of brokers, insurance surveyors ,and insurance
agents;
7. Grants received from any foreign government, organization, or international
organization with the prior approval of the government
8. Sum of money received from the sale of properties belonging to the authority;
9. Sum of money receipt from any other sources; and
10. Income from investment sector.
Insurance Development and Regulatory Authority started its function with a taka 80 lac
(8 million) government contribution. IDRA earns in the form of various license fees, penalties,
and interest on deposits. On the other hand, staff salary, office rent, electricity bill, stationery,
hospitality expenses are the most common elements of expenditure. IDRA deposited taka 128
core from its income to the government exchequer. Last 10 years income and expenditure are
summarized that shown in chart 12.
Chart 12
Income and Expenditure of IDRA from 2010-2011 to 2019-2020 (BDT Crore)
Fiscal
Year
Expenditure Amount Expenditure Amount
2010
-
11
Government Grants
80,00,000
Expenditure
33,57,143
Income from fees
71,57,054
Income over
expenditure
1,17,99,911
Total
1,5
1,57,054
Total
1,51,57,054
2011
-
12
Income from fees and
others
29,17,84,379
Expenditure
2,34,38,464
Interest from fixed
deposit and Bank interest
1,67,16,896
Others income
36,650
Income over
expenditure
28,50,99,461
Total
30,85,37,925
Total
30,85
,37,925
2012
-
13
Income from fees and
others
35,27,33,026
Expenditure
3,86,28,078
Interest from fixed
deposit and Bank interest
4,87,00,099
Others income
2,78,917
Income over
expenditure
36,30,83,964
Total
40,17,12,042
Total
40,17,12,042
25
Fiscal
Year
Expenditure Amount Expenditure Amount
2013
-
14
Income from fees and
others
31,94,44,060
Expenditure
7,66,35,967
Interest from fixed
deposit and Bank interest
6,81,01,293
Others income
98,086
Income over
expenditure
31,10,07,471
Total
38,76,43,439
Total
38,76,43,439
2014
-
15
Income from fees an
d
others
33,71,27,855
Expenditure
9,90,97,067
Interest from fixed
deposit and Bank interest
7,38,33,833
Others income
7,37,346
Income over
expenditure
31,26,01,967
Total
41,16,99,034
Total
41,16,99,034
2015-16
Income from fees and
others
37,58,
56,328
Expenditure
7,96,25,644
Interest from fixed
deposit and Bank interest
7,88,70,056
Others income
3,64,621
Income over
expenditure
37,54,65,361
Total
Income from fees and
others
Income tax
(9,38,66,340)
Income over
expenditure
28,15,99,0
21
Interest from fixed
deposit and Bank interest
45,50,91,005
Total
45,50,91,005
2016
-
17
Income from fees and
others
37,77,39,538
Expenditure
8,97,98,335
Interest from fixed
deposit and Bank interest
6,31,99,937
Others income
23,85,228
Income ove
r
expenditure
35,35,26,368
Total
Income from fees and
others
Income tax
(8,83,81,592)
Income over
expenditure
26,51,44,776
Interest from fixed
deposit and Bank interest
44,33,24,703
Total
44,33,24,703
2017-18
(Unaudited)
Income from fees and
others
37,29,39,266
Expenditure
12,91,14,475
Interest from fixed
deposit and Bank interest
3,76,00,000
Others income
29,35,199
Income over
expenditure
28,43,59,989
Total
Income from fees and
others
Income tax
(7,10,89,997)
Inco
me over
expenditure
21,32,69,992
26
Fiscal
Year
Expenditure Amount Expenditure Amount
Interest from fixed
deposit and Bank interest
41,34,74,465
Total
41,34,74,465
2018
-
19
(Unaudited)
Income from fees and
others
13,03,23,477
Expenditure
11, 41,97,913
Interest from the fixed
deposit and Bank interest
5,55,68,333
Others income
Income from fees and
others
23,38,736
Income over
expenditure
7,40,32,633
Income tax
(1,85,08,158.25)
Income over
expenditure
5,55,24,474.75
Interest from fixed
deposit and Bank interest
18,82,30,546
Total
18,82
,30,546
2019-20
(Unaudited)
Income from fees and
others
13,21,44,421 Expenditure 9,43,97,646
Interest from the fixed
deposit and Bank interest
7,06,88,299
Others income
Income from fees and
others
21,03,740 Income over
expenditure
11,05,38,814
Income tax (2,76,34,703.50)
Income over
expenditure
8,29,04,110.50
Total 20,49,36,460 Total 20,49,36,460
27
Life Insurance
Premium
The life insurance sector uplifted the entire industry again in 2018 like before by undertaking
BDT 8,989.06 crores of premium income compared to 8,198.46 crores of 2017. The growth
pace was 10 years highest and achieved a 9.46% growth rate. This tremendous growth success
came into effect due to strong economic progress and the extraordinary effort of life insurers.
Premium income of 2019 was a bit slower than the preceding year. Despite that, the total
premium income was grown by 6.79% and reached BDT 9,599 crore helping to touch a new
milestone to cross over BDT 9,000 crore bar for the first time. If the overall economic
condition remains stable and insurers continue their all-out effort then the premium may rise in
coming years. However, the claim settlement rate is one of the determiners that swing the
growth rate in both ways.
Disposable income has been raising parallel with raising GDP and per capita income in every
year. The increasing trend of disposable income widens the opportunity to invest in insurance
but success depends on a condition how they exploit this prospect. Only 10% of the total
population is under insurance coverage hence a large number of people are outside the
insurance coverage. As a result, the scope is very high to bring them under insurance coverage
which may step up premium income sharply.
Chart 13
Gross Premium category-wise in Life Insurance Business (2015 to 2019) (BDT Crore)
Year Individual Micro Insurance
Group & Health
Islami Total
2015
4802.19 1290.85 334.24 888.81 7316.09
(65.64) (17.64) (4.57) (12.15) (100)
2016
5080.73 1180.27 363.61 963.85 7588.45
(66.95) (15.55) (4.79) (12.70) (100)
2017
5558.88 1202.17 491.73 945.67 8198.46
(67.8) (14.66) (6.00) (11.53) (100)
2018
5966.37 1389.20 589.17 1044.33 8989.07
(66.37) (15.45) (6.55) (11.62) (100)
2019
6347.94 1481.62 697.00 1073.00 9599.56
(66.13) (15.43) (7.26) (11.18) (100)
Note: Percentage shows in a bracket
28
Graph 6
Premium Growth Rate of Life Insurance (2015 to 2019)
Chart 14
Premium income, Re-insurance, Net Premium Income and Retention rate (2015-2019)
Year
Total Premium
Income (BDT
Crore)
Re-insurance
Premium Income
(BDT Crore)
Net Premium
Income (BDT
Crore)
Retention
2015
7316.09 16.53 7299.57 99.77%
2016
7588.45 23.34 7565.11 99.69%
1017
8198.46 29.83 8168.63 99.64%
2018
8989 2.90 8963.22 99.62%
2019
9599 45.28 9554.40 99.82%
The Sector-wise premium income
In the year 2018 and 2019 the total premium income were respectively BDT 8,989 and BDT
9,599 crore. Premium income shows presented in chart 14 classified into 4 segments namely
individual, micro insurance, group and health insurance, and Islami Takaful insurance.
Individual business is the most popular for the insured and a successful class of business for
insurers. Total business comes from this segment remained steady for a long time. In 2018,
the individual portfolio contributes 66% of total business and which remain the same
coincidently in 2019 as well. Besides that, total business from micro-insurance goes up by 1%
from the previous year and reached 16%. But the total business of Takaful reduced by 1% and
declined to 11% from 12% which is very minor. The future outlook of the health insurance
business is very bright as rising middle-income groups and various corporates offer health
insurance for their employees. Only 7% comes from group and health insurance portfolios in
both 2018 and 2019. If the insurer put customer satisfaction at the first place, design more
innovative products, and introduce new distribution channels along with traditional sales
approaches then there would be a great opportunity to bring more people under insurance
coverage.
29
First Year and Renewal Premium Income
Renewal premium income is the lifeline for the insurer in the context of Bangladesh in
particular. Renewal premium income is not satisfactory as policyholders’ renewal rate is very
low. Only a few percent of the first year premium income is renewed in the subsequent year.
First-year premium income, rate of 2nd-year renewal premium income, and third-year and
above premium income showed in charts 15 and 16. In general, the insured chooses to procure
group and health insurance for two years and the insurer also designs such products keeping
customer demand in mind. Hence there is no tradition to renew this product. If the insurers
renew the contract it becomes a fresh contract and is treated as a new policy.
Chart 15
First Year and Renewal Premium with Group and Health Insurance (2015-2019) (BDT Crore)
Year Renual Premium
1st Year Premium
2nd Year
3rd and above Year
2015 2801.08 853.94 4360.71
2016 2409.21 957.74 4221.16
2017 2792.92 959.57 4445.97
2018 3211.46 1258.5 4519.11
2019 3371.71 1231.83 4991.69
Chart 16 shows that without taking into account group and health insurance total first-year
premium income was BDT 2,301 crore in the year 2017 out of that only amount to taka
1258.50 crores were renewed during the year 2018 which is only 54.70% of total premium
income. How many policies have been renewed can be seen from the total number of policy
calculations. In the same way, total premium income except group and health was taka
2622.29 core (chart 16) in 2018 out of which only 47% policies were renewed this year, where
53% policies were lapsed.
Chart 16
First Year and Renewal Premium without Group and Health Insurance (2015-19) (BDT Crore)
Year Year wise Premium
Except Group and Helth
Insurance
Renual Premium
2nd Year 3rd and above Year
2015 2466.84 853.94 4360.71
2016 2045.6 957.74 4221.16
2017 2301.19 959.57 4445.97
2018 2622.29 1258.5 4519.11
2019 2674.71 1231.83 4991.69
The low renewal premium income attributes to several reasons. Firstly agents run toward
earning more premiums to fulfill his /her target ignoring the necessity of quality of the policy.
30
Secondly, substandard customer care services. Thirdly, procrastination in settling claims.
Section 62 of the insurance act 2010 allows insurers to expense a lion portion of first-year
premium income as expenses. To enjoy the flexibility in management expenses insurance
policy must be renewed as the actuary devise the product taking into account of the whole
policy life cycle. However, in reality, only a few insurers have high or good renewal rates. As
a result of this, insurers are struggling in overall cost management. Higher the renewal
premium income more the allowable limit which insurers get room to expense in research and
advertisement. Presently it becomes tough for the insurer to incur necessary expenses from the
allowable limit as they find little portion from renewal premium income owing to the high
lapse ratio. Achieving high renewal premium income has multiple benefits for example it adds
part of premium income to the allowable limit and increase the amount so that insurers find an
opportunity to expense in advertisement and research and development incurring a basic cost.
Besides that, it becomes tough to hire quality human resources with a limited budget. Because
of the necessity of renewal premium income insurers have to be more cautious to eliminate all
obstacles to renewal premium income or in other words declining high lapse ratio.
Market share
Bangladesh's Market is comparably small in contrast to its GDP size and per capita income.
Only a few insurers are dominating and maintaining the maximum market portfolio. Metlife in
operation since 1952, is the market leader and covers 29.30% of the total market in 2018
which increased a bit and reached 30.17% in 2019. Fareast Islami life retained in the second
position with a total market share of 11.78% and National Life Insurance Company attained
the third position with a 10.75% market share. Besides that, Popular life, Delta life, Jiban
Bima corporation, Meghna life, and Prime life accounted for 8.94%, 7.39%, 5.71%, 4.82%,
4.03% market share respectively. Twelve company’s market share namely Alpha life, Baira
Life, Best Life, Chartered Life, Dimond Life, Golden Life, Jamuna Life, LIC Bangladesh,
Mercantile, NRB Global Life, Protective Life, Swadesh Life, Trust Life, and Zenith life within
the range zero to 0.5%. That means these twelve companies' market cap is on or below 0.5%.
Despite little ups and down the overall market share of 2019 was almost the same as 2018.
Most of the companies retained their position. National Life Insurance Company sealed the
second position for the first time in the last decade displacing Fareast Islami life retaining an
11.23% market share. In 2019 Fareast’s premium income fell to BDT 1056 core by declining
2.78 crores only which placed this company in the third position. Besides that, other
companies such as Popular life, Delta life, Meghna life, and Jiban Bima Corporation retained
the same position similar to 2018.
31
Chart 17
Market share of all the Life Insurers in the years 2016 to 2019
Insurers
Name
2016 2017 2018 2019
Gross
Premium
Market
share
Gross
Premium
Market
share
Gross
Premium
Market
share
Gross
Premium
Market
share
(BDT
Crore)
(%)
(BDT
Crore)
(%)
(BDT
Crore)
(%)
(BDT
Crore)
(%)
Alpha 5.53 0.07 6.09 0.07 6.92 0.08 3.86 0.04
Baira 18.08 0.24 13.99 0.17 10.78 0.12 6.06 0.06
Best 8.1 0.11 11.34 0.14 18.33 0.20 18.97 0.20
Chartered 7 0.09 8.51 0.1 11.02 0.12 16.74 0.17
Dimond 4.01 0.05 13.38 0.16 11.45 0.13 12.48 0.13
Delta 588.66 7.76 625.1 7.63 664 7.39 710.9 7.41
Fareast 925.5 12.2 1012.04 12.35
1058.78 11.78 1056.04 11.00
Golden 31.77 0.42 25.05 0.31 23.09 0.26 17.07 0.18
Guardian 46.12 0.61 150.71 1.84 209.03 2.33 281.71 2.93
Homeland 117.28 1.55 113.26 1.38 114.3 1.27 108.37 1.13
Jamuna 9.43 0.12 10.75 0.13 8.42 0.09 9.92 0.10
JBC 412.51 5.44 474.72 5.8 513.45 5.71 574.12 5.98
LIC 0.14 0 7.29 0.09 8.48 0.09 11.95 0.12
Meghna 424.26 5.59 428.61 5.23 432.91 4.82 435.08 4.53
Mercantile 8.31 0.11 10.23 0.12 11.07 0.12 17.19 0.18
Metlife 2133.76
28.14
2428.14 29.64
2663.56 29.63 2896.53 30.17
National 811.06 10.7 871.11 10.63
966.14 10.75 1078.18 11.23
Bengal
Islami
3.37 0.04 3.16 0.04 6.12 0.07 8.9 0.09
Padma 133.06 1.75 108.53 1.32 58.88 0.65 66.21 0.69
Popular 600.57 7.92 501.16 6.12 803.98 8.94 808.36 8.42
Pragati 220.5 2.91 231.96 2.83 255.99 2.85 292.38 3.05
Prime 312.12 4.12 347.12 4.24 362.27 4.03 364.41 3.80
Progressive 80.55 1.06 74.61 0.91 65.2 0.73 60.58 0.63
Protective 7.43 0.1 12.19 0.15 24.01 0.27 31.32 0.33
32
Insurers
Name
2016 2017 2018 2019
Rupali 202.25 2.67 204.82 2.5 215.78 2.40 237.6 2.48
Sandhani 181.05 2.39 182.09 2.22 156.79 1.74 183.13 1.91
Swadesh 1.89 0.02 3.29 0.04 2.63 0.03 6.02 0.06
Sonali 19.55 0.26 40.75 0.5 67.79 0.75 81.08 0.84
Sunflower 118.73 1.57 119.63 1.46 104.85 1.17 81.71 0.85
Sunlife 113.72 1.5 108.47 1.32 80.71 0.90 81.03 0.84
Trust 20.14 0.27 18.66 0.23 22.81 0.25 26.25 0.27
Zenith 16.97 0.22 24.92 0.3 29.52 0.33 15.5 0.16
Total 7583.5 100 8191.7 100 8989.07 100 9599.63 100
Top ten insurers in terms of premium income
Total premium income is the single determiner of the life insurer's market position. Therefore,
the discussion of this Para is linked with the previous discussion. Metlife retains its top
position like before. Its total premium income accounted for BDT 2663.56 crore and ahead by
1604.78 core from Fareast Islami Life Insurance that attained the second position by
undertaking 1058.78 core premium income equivalent to 11.23% of total premium income
earned by all life insurers in 2018. In the same way, National life, Popular Life, and Delta life
attained third, fourth, and fifth positions respectively and the respective company’s premium
income is BDT 996.14 crore, BDT 803.98 crore, and BDT 664 crore. With BDT 513.45 crore
of premium income, JBC attained the sixth position, and Meghna Life placed itself in the
seventh position by earning 432.91 of premium income. The other companies in the list are
Prime Life, Pragati Life and Rupali Life.
In 2019, most of the companies retained their previous positions. Replacing Fareast, National
Life insurance company came to the second position and touched the milestone of earning
1000 crore premium income for the first time and it is the third company which crosses over
1000 crore threshold. Rupali life was replaced by Guardian life. Guardian life got the license
in 2014 and made a remarkable progress in terms of premium income that ultimately pushed it
to secure the tenth place (Chart 18).
33
Chart 18
Top Ten insurers in terms of Premium Income (BDT Crore)
Insurer Premium Income (2018) Insurer Premium Income (2019)
Metlife
2663.56 Metlife 2896.53
Fareast
1058.78 National 1078.18
National
966.14 Fareast 1056.04
Popular
803.98 Popular 808.36
Delta
664.00 Delta 710.90
JBC
513.45 JBC 574.12
Meghna
432.91 Meghna 435.08
Prime
362.27 Prime 364.41
Pragati
255.99 Pragati 292.38
Rupali
215.78 Guardian 281.71
Total Number of Insurance Policy
The higher the policy sales, the higher the premium income. It results in having more people
under insurance coverage. In chart 20, the year-wise number of the in-force policy issued
policy lapsed policy, surrendered policy, and revive policy is given below. The last five-year
analysis from 2015 to 2019 shows that total numbers of in-force policies have been declining
every year, which is alarming for the industry as it goes against the motto- ‘bring more people
under insurance coverage’ (see details in graph-7). The total in-force policy was 11.52 million
at the end of 2015 but the number fell to 10.72 million at the end of 2018 and the declining
trend continued to the end of 2019 which accounted for 9.75 million in-force policies. Matured
policies are automatically deducted from the in-force policies but in Bangladesh, a high lapse
rate is the major cause of the declining trend of in-force policy (Chart 19).
Chart 19
Number of Insurance Policy BDT
in million
Year
In force
policies at
the end of
the year
Issued
Policies
Lapsed
policies at the
end of the year
Surrendered
policies
Revived policies
2015
11.5222 1.7392 1.6859 0.0928 0.3143
2016
10.5061 1.9325 1.4082 0.0525 0.4463
2017
10.9519 1.8391 1.0055 0.1574 0.3803
2018
10.7168 1.7753 1.4968 0.0791 0.5005
2019
9.7413 1.6735 1.4491 0.0822 0.7117
34
Graph 7
Number of Inforce Policies from 2015 to 2019
Newly Issued Policies
Newly issued policies help to bring uninsured people under insurance coverage, which
enhances insurance inclusion. Graph 8 shows that newly issued policies are reducing at an
alarming rate. From 2017 to 2018 newly issued policies were reduced by 3.47% and the trend
continued to 2019 when newly issued policies witnessed a negative growth by 5.73%.
Graph 8
Total Issued Policies in Life Insurance Sector (2015-2019)
35
Lapsed Policy
The number of policies issued every year is not less compared to the population of the
country. But industry’s major problem is high lapse policies. Graph 11 shows that every year a
huge number of policies become lapsed. In 2017 the total number of lapsed policies was 1
million and the situation deteriorated more in the years 2018 and 2019. The lapsed policies
were 1.50 and 1.45 million in 2018 and 2019 respectively. Some insurer will lose their
stability if they can not reduce the trend of lapse policies.
Graph 9
Number of Lapsed Policies of Life Insurer from 2015 to 2019
Life Fund
Life fund is generated from deducting external liabilities, owners equity, and mandatory
capital kept in government securities under section 21 of the insurance act from the assets.
Life fund uses under section 32 while conducting an actuarial valuation. Premium income
increases life fund whereas management expenses and claim settlement reduces the life fund.
Increases or a decrease in life funds is a regular process. There is no scope of prolonging claim
settlement to retain life funds, this tendency would not bring any result for the company. Size
of life fund gives a good insight into the industry. If the number of issued policies is more than
the maturity and death claims then the life fund would increase automatically. The last five
years' life fund is shown in chart 20.
36
Chart 20
Life Fund and Growth Rate (2015-2019)
Year Life Fund (BDT Crore) Growth of the Life Fund
2015
28383 6.65%
2016
29554 4.13%
2017
30887 4.51%
2018
32082 3.87%
2019
33864 5.56%
Chart 20 shows the amount of the life fund and graph 11 represents the growth rate. Graph 11
shows that growth is not steady rather there is an upward and downward trend. However, as a
whole life fund has increased every year and in the last five years from 2015 to 2019 life fund
increased at the rate of 3.86%. In 2015 life fund augment by 6.65% and followed by 4.13% in
2016. In 2018, the life fund was enhanced by 3.87% and reached BDT 32,082 crore from the
previous year. In 2019, life fund also raised remarkably, which is 5.56%. At the end of 2019
balance of life fund was BDT 33,864 crore.
Graph 10
Balance of Life Fund from 2015 to 2019
37
Graph 11
Growth of the Life Fund from 2015 to 2019
Chart 21
Life Fund of all the life Insurers from 2018 to 2019 (BDT Crore)
List of Life Insurers
2018
2019
Alfa
1.18
-0.20
Astha
0.00
Baira
78.31
66.05
Best
2.55
4.45
Chartered
4.24
10.06
Diamond
-4.18
-3.40
Delta
3829.67
3989.35
Fareast
3332.93
3369.04
Golden
70.03
67.95
Guardian
166.28
234.42
Homeland
283.18
270.19
Jamuna
-3.84
-3.62
JBC
1925.80
2049.37
LIC
0.14
4.51
Meghna
1686.73
1790.77
Mercantile
3.72
9.52
Metlife
11941.80
13154.61
National
3461.56
3699.26
Bengal Islami
-2.19
-1.11
Padma
58.25
20.98
Popular
1788.66
1694.86
Pragati
554.94
568.35
Prime
880.99
882.03
38
Progressive
275.60
276.96
Protective
0.12
4.08
Rupali
450.40
476.21
Sandhani
837.27
802.33
Swadesh
60.15
95.33
Sonali
240.86
192.15
Sunflower
164.19
142.88
Sunlife
-2.71
-2.13
Trust
0.37
3.11
Zenith
-5.31
-3.99
Top ten insurers in terms of Life Fund
The top ten life insurers in terms of life fund are shown in chart 23. Metlife, the country’s
leading insurer earned the first position. It is one of the oldest companies and it has been in
operation for a long time, which benefits it to accumulate funds over the long period. In 2018
total life fund of Metlife was taka 11,942 crore and is the only company that achieved the taka
10,000 crore milestone. Facts and figures reveal that Delta life, National Life, Fareast Life
were placed in second, third, and fourth positions respectively and respective company’s life
funds were within the bracket of 3000 to 4000 crore. State-owned Jiban Bima Corporation was
in the 5th place in 2018. Companies were spread over six to the tenth place are the Popular
life, Meghna Life, Prime Islami Life, Sandhani Life, Pragati life respectively. In 2019, data
shows the same picture as 2018 except for minor changes. Popular life lost its 6th place to
Meghna life and Meghna Life was replaced by Popular life.
Graph 12
Top ten Insurers in 2018 and 2019 in terms of Life Fund
39
Chart 22
Top ten Insurers in 2018 and 2019 in terms of Life Fund (BDT Crore)
Serial Name of the Inusrers 2018 Name of the Inusrers 2019
1
Metlife 11,942 Metlife 13,155
2
Delta Life 3,830 Delta Life 3,989
3
National Life 3,462 National Life 3,699
4
Fareast Islami Life 3,333 Fareast Islami Life 3,369
5
Jiban Bima Corporation 1,926 Jiban Bima Corporation 2,049
6
Popular Life 1,789 Meghna Life 1,791
7
Meghna Life 1,687 Popular Life 1,695
8
Prime Islam Life 881 Prime Islam Life 882
9
Sandhani Life 837 Sandhani Life 802
10
Pragati Life 555 Pragati Life 568
Life Insurers’ Assets
The total asset of life insurers is increasing every year with the increase of Premium income
and the income-generated from investment. Graph 13 shows that in 2017, total amount of
assets of life insurers stood at BDT 37052 crore which increased by 3.61% in 2018 and
reached BDT 38,388 crore at the end of the year. In the next year, total assets reached BDT
41,175 crore growing 7.26% from the previous year. It is noticed that growth of the assets was
the highest in 2019 in the last five years and this is the first time total assets volume crossed
BDT 40,000 crore.
40
Graph 13
Life Insurers Assets’ Amount and Growth Rate from 2015 to 2019
The mix of the assets
Total assets are presented by segregating them into 16 different categories. The mix of the
assets is presented in chart 23 and graph 14. The chart shows that most of the assets were
invested in the portfolio of `Investment other than FDR and Land and Building’ which
accounted for 46.0117% in 2018 and appreciated to 49.32% in 2019. Fixed deposit in Banks
was the second most dominant portfolio which covers 28.72% of total assets equivalent to
BDT 11109.02 crore. In the next year, FDR in banks reduced to 26.10% which accounted for
BDT 10746.31 crore. Total investment in Land and Development was 7.04% and 7.31% of
total assets in the year 2018 and 2019 respectively. Assets accumulated in Advance and
Deposits in 2018 was 2032.13 crore in 2018 similar to 5.25% total assets but reduced to 4.94%
in 2019.
Chart 23
Asset of life insurence in 2018 and 2019 (BDT Crore
)
Sector wise investment 2018 (%) 2019 (%)
Furniture and Fixture 92.91 (0.240) 96.36 (0.234)
Land, Land Development and Building 2725.39 (7.045) 3007.83 (7.305)
Others Assets 310.04 (0.801) 656.00 (1.593)
Policy Loan 1262.81 (3.264) 1332.03 (3.235)
Investment except land, building and FDR
17800.77 (46.012)
20306.54 (49.318)
Interest, dividend and rent receiveable 1309.18 (3.384) 1398.81 (3.397)
41
Primary expenses 1.56 (0.004) 1.27 (0.003)
Pre-operation related expenses 0.00 (0.00) 0.00 (0.00)
Deffered Expenses 0.12 (0.00) 0.00 (0.00)
Received from reinsurer 130.22 (0.337) 12.78 (0.03)
Agent Balance 47.62 (0.123) 44.50 (0.108)
Outstanding Premium 1220.43 (3.155) 1182.19 (2.87)
Advance and Deposit 2032.13 (5.253) 2031.95 (4.935)
Cash and cash related including FDR 11109.02 (28.715)
10746.31 (26.099)
Priting and Stationary stock 15.59 (0.04) 15.02 (0.037)
Others assets 629.72 (1.628) 343.03 (0.833)
38687.51 41174.62
Note: Numbers inside the bracket shows the percentage.
Graph 14 shows that 96% of total assets were invested in mere 5 sectors. These are
‘Investment in other sectors excluding FDR and land’ in which government securities are
included, Cash and cash equivalent including FDR, Land and Land Development,
Miscellaneous advances, Policy Loan and Outstanding Premium. Out of them, total assets
accumulated in outstanding premium were 3.15% of total assets which are very high and
demands more scrutiny. Moreover, insurers have to be cautious about the high volume of
outstanding premiums.
Graph 14
Life Insurer’s Asset in Various Fields in 2018
42
Graph 15
Amount of Asset of Top Ten Insurers
The top ten insurers in terms of assets were Metlife, Delta Life, National Life, Fareast Islami
Life, Jiban Bima Corporation (JBC), Popular Life, Prime Islami Life, and Pragati Life
respectively. Metlife was in the first position holding assets worth of BDT 14,204 crore
similar to 36.71% of the industry’s total assets. Metlife continued to add more assets in its
coffers and its volume increased to 15,888 crores equivalent to 38.58% of the total assets of
the entire life industry. Besides, the total assets of delta life were BDT 4474 crore and
increased in 2019 and reached BDT 4580 crore in 2019. Fareast Islami life and JBC were in
fourth and fifth places respectively. 92.99% of total assets in 2018 and 93.22% of total assets
in 2019 were accumulated to the top ten insurers.
Investment
Insurers invest in different portfolios from existing assets and premium income. The invested
amount increased the total assets. Asset increases every year with the raises of premium
income. In general, insurers do invest a large portion of their total assets. Chart 24 shows an
uneven trend of total investment from 2015 to 2019. Total investments were BDT 29,934
crore in 2017 which increased by 3.83% and reached BDT 33,831 crore in 2018. In 2019
investment growth was 9% and the balance of total investment stood at BDT 33,831 crore at
the end of the year. Insurers invest their investable funds in various portfolios in different
terms considering the claim settlement issue.
43
Chart 24
Life insurer’s Investment and Return on Investment from 2015 to 2019
Year Investment (BDT Crore) Rate of Return from investment
2015 26788
7.73%
2016 27888
4.11%
2017 29934
7.34%
2018 31080
3.83%
2019 33831
8.85%
Investment portfolios
Insurers invest their funds according to Investment Rules 2019 before that they followed the
insurance rules 1958. According to existing rules insures must invest 30% of total assets in
government securities. In 2018 total amount of investment was BDT 14,045 crore which is
45.25% of the total investment. In the same year, the fixed deposit was the second most
preferred sector to the insurer where insurers invested amounting to BDT 9,147.57 crore that
are representing 29.43% of total investment. In the immovable property, insurers put BDT
2,752 crore of assets which accounts for 8.86% of total investment. Moreover, insurers
invested 4.95% and 4.06% of total investment in the IDRA- approved various fields
respectively in the years 2018 and 2019.
Chart 25
Class wise Investment of Life Insurence (2018 - 2019) (BDT Crore
)
Particulers
2018 2019
Investment
Amount of
return from
investment
Rate of
return
(%)
Investment
Amount of
return from
investment
Rate of
return
(%)
Government
Securities
14063.03 1422.65 10.12 16682.03 1461.69 8.76
Mutual Fund and
Unit Fund
275.52 17.10 6.21 256.71 7.82 3.05
Shares 1601.25 82.82 5.17 1615.51 74.72 4.63
Debentures 384.74 32.65 8.49 385.84 43.32 11.23
Land, Building
and Flat
2752.83 40.95 1.49 2996.32 54.71 1.83
Mortgage
Property
56.99 6.07 10.66 63.53 2.98 4.69
Scheduled Bank 9147.57 770.87 8.43 8798.82 902.78 10.26
Bridge Finance 0.00 0.00 0.00 0.00
Policy Loan 1260.87 151.62 12.02 1331.45 157.95 11.86
Others sector
approved by
IDRA
1537.45 71.60 4.66 1701.21 70.56 4.15
Total 31080.24 2596.35 33831.42 2776.53
44
Investment in immovable property and land is not the profitable sector in terms of investment
return as returns do not come regularly and opportunity cost is very high. Apart from that,
there is a high moral hazard in investing in land and building. Despite having these drawbacks
this sector is the third most preferred area of investment where 8.86% of total investable funds
were invested. The low rate of return from this sector is downing the overall rate of return of
the life insurer.
Graph 16
Percentage of Investment in 2018
Graph 17
Percentage of Investment in 2019
45
Top Ten insurers in terms of investment
Top ten insurers in 2018
The list of the top ten insurers is shown in graph 18. Metlife holds the first position investing
BDT 13,544 crore in 2018. Out of total assets, 95.35% was invested in various interest-bearing
avenues which shows great efficiency and financial management. Investing 3,509 core delta
life holds the second position followed by National Life which invested BDT 3,330 crore.
Besides these, Fareast Islami life and Jiban Bima Corporation hold 4th and 5th positions
according to data provided by them. Maintaining the optimum level of investment of the
insurer of the assets holds is very crucial to the generating maximum from the assets. Some
insurers are not following this rule and paying the prices yielding a low return. At the end of
2018, the total assets of Fareast Islami life were BDT 4,258 crore in which only BDT 2515
crore was invested which reveals that 40.93% of the assets are in the form of cash which
shows the greater financial management deficiency. In the same way, popular life is in the
same position which maintains 32.43% of total assets as a liquid. Popular life invested only
BDT 1331 crore out of 1970 crore which is equivalent to 61.57%.
Graph 18
Top Ten Insurers in terms of Investment in 2018
Top ten insurers in terms of investment in 2019
Graph 19 shows the top ten insurers. Investing taka 15161 crore Metlife holds the first position
followed by Delta Life whose investment amount was 3717 core. National life holds the third
position investing BDT 3585 crore. Besides that Fareast Islami life and JBC placed 4th and
5th positions. These two insurers invested BDT 2,614 and BDT 1,889 crore respectively.
Moreover, Popular life invested BDT 1,773 crore, Meghna life invested BDT 1,457 crore,
46
Sandhani life invested BDT 806 crore, Prime life invested BDT 668 crore and Pragati life
invested BDT 481 crore. These five companies are in 6th to 10th place according to their
investment amount.
Graph 19
Top Ten Insueres in terms of Investment
Investment Return
It is a very important task of the insurer to determine suitable investment avenues. A
combination of high investment return and low-risk exposure makes a channel a suitable
avenue for investment. Sector-wise investment returns of 2018 and 2019 have been shown in
graph 20. If the money supply remains high in the macroeconomy then idle money soars
which results in a low-interest rates environment or vice-versa. Detailed analysis shows that
putting money in government securities produces high returns.
In the year 2018, the rate of return of government securities was over 10% which fell to 8.76%
in 2019. Government security is the most preferred avenue of investment. In the year 2018,
45.25% of total investment went to government securities and this trend continued till 2019.
Investment return always follows market interest rates. Hence, due to the changing interest
rate regime, earnings may be volatile in 2018 and 2019.
Life insurer issues policy loan to the policyholder against the premium income. In 2018 and
2019 the percentage of the total loan was 4.95% and 5.03% respectively. Sanctioning
Policy loan is very convenient for the insurers in various ways as this process does not require
any underwriting process and can charge higher interest than that of a free-market offering.
But, issuing policy loans depends on the intention of the insured, hence the insurer cannot
invest in policy loans as much as they want. Life insurers invest a lion portion of investable
funds to different commercial banks. Total investment in commercial banks was 29.43% and
26.01% in 2018 and 2019 respectively and generated 8.42% and 10.26% returns in the
47
corresponding two years. The argument behind the high investment return compared to the
low investment regime in 2018 and 2019 is that these investments were made a few years
earlier when the market offering was lofty. Land and building is another source of investment
where life insurer put their 9% of the total fund in 2019 which was 8.86% in the previous year.
In terms of investment return, this sector is the least profitable which produce only a 1.48%
return of the fund in 2018 and 1.82% in the next year. Investing a large number of funds in
land and buildings produces low investment returns are affecting insurers' surplus and
ultimately bonuses of the policyholders. All the insurers are not giving the same weight in
selecting land and building as an investment avenue but because of a large amount of
investment by few insurers, the overall volume becomes very large. Besides that, the return
from the investment in debenture was 8.48% and 11.22% in the years 2018 and 2019
independently. On the other hand, life insurers’ investable funds increased by 6.20% in 2018
from investing in Mutual funds which reduced to 3% in the following year. What is more,
insurers also invest in some other areas upon receiving permission from IDRA which results in
4.65% return in 2018 and 4.14% in the subsequent year.
Graph 20
Class-Wise Life Insurer’s Investment Return (2018-2019)
Management Expenses
According to section 62 of the insurance act 2010, all the direct and indirect expenses must be
taken into account while determining management expenses. According to this section
management expenses must be kept within the limit as prescribed by the regulation which is
framed under this section. The relevant regulation has not been promulgated as of 31st
December 2019. However, Management expenses regulation was promulgated in 2020 and
insurers entered a new management expenses regime. Before that, life insurers have been
following rule 39 of the insurance rules 1958 which was part of the then insurance act 1938.
48
Chart 26
Actual Management expenses, allowable limits, and excess management expenses (2015 to 2019)
Year Actual Mgt.
Expenses
(BDT Crore)
Allowable Mgt.
Expenses
(BDT Crore)
Excess Mgt.
Expenses
(BDT Crore)
% of excess mgt.
expenses over
allowable limit
2015 2614.09 2335.59 278.50 11.92%
2016 2780.05 2578.44 201.61 7.82%
2017 2925.81 2817.22 108.59 3.85%
2018 3258.14 3163.62 94.51 2.99%
2019 3241.26 3409.45 -168.19 -4.93%
IDRA has been taking various initiatives since 2013 to reduce the management expenses. In
the last few years, IDRA imposed tough conditions to curve expenses and to reimburse the
accumulated excess management cost by reducing the same amount from allowable limits. As
a result this has prompted insurers to incur fewer costs than the allowable limit. In the
meantime, some of the companies were able to reimburse the excess cost following the
condition set by IDRA. In 2017 percentage of excess management expenses over the
allowable limit was 3.85% which reduced gradually in subsequent years. In 2018 the excess
cost over the allowable limit was 2.99%, a bit lower than the previous year. (chart 26)
Whereas the industrys’ overall scenario is very much optimistic as total management expenses
were BDT 3241.26 crore which is 4.93% lower than that of the allowable limit (graph 21).
Graph 21
Excess Management Expenses in Life Sector from 2015 to 2019
Two indicators are being used to determine the efficiency concerning management expenses.
In the first indicator, total management expenses has been compared to total premium income.
In the second indicator, excess management expenses, if any, has been compared with
allowable management expenses. Graph 22 shows the percentage of management expenses to
the total premium income. In the life insurance industry, the overall management expense to
49
premium ratio was 36.28% in 2018 and 35.91% in 2019. These two ratios of two different
years are much higher than standard limits. Considering Bangladesh market standard
management expense to premium income ratio should be 25% to 27%.
Graph 22
Percentage of Management Expenses over Premium Income (2015 to 2019)
Claim Settlement
It is one of the best ways to interact with policyholders and it is the most important indicator to
create a positive image among customers. IDRA gives paramount importance to settling
claims thereby, claim settlement rates rose in 2019 compared to 2018. In some cases, IDRA
emphasizes settling claims publicly through a public gathering including policy holders in the
district and Upazila levels. Besides that, IDRA uses Insurance Fair as another platform for
settling claims.
Chart 27
Class Wise Life Insurers Claim Settlement from 2015 to 2019 (BDT crore)
Year Death
claim
Matured
Claim
Surreder
claim
Survival
Benefit
Group and
health claim
Total
Claim
2015 254.43 3210.92 472.46 1473.66 277.75 5689.22
2016 277.62 3811.18 488.04 1374.59 301.63 6253.06
2017 396.22 4074.66 580.47 1353.93 398.12 6803.41
2018 271.18 4133.08 942.49 1274.46 711.65 7332.86
2019 280.77 4130.71 665.68 1344.58 843.17 7264.91
Life insurance claims amount at the end of the year shows the accumulated figure of opening
balance plus closing balances of the reporting year. The number of claims at the end of 2018
was taka BDT 7,332.86 crore which reduced a bit and fell to BDT 7264.91 crore in the
following year. Total claims of 2019 comprise of death claim of BDT 280.77 crore, matured
policies of BDT 4,130.71 crore, surrender claim of BDT 665.68 crore, the survival benefit of
BDT 1,344.58 crore, and group and health insurance claim of BDT 843.27 crore (chart 27).
50
Chart 28
Settlement of Insurance Claim (2015-2019) (BDT crore)
Year Death
claim
Matured
Claim
Surreder
claim
Survival
Benefit
Group and
health claim
Total Claim
2015 139.87 2839.16 472.91 1173.04 227.25 4852.24
(54.98) (88.42) (100.09) (79.60) (81.82) (85.29)
2016 158.26 3359.18 487.88 1112.97 251.79 5370.08
(57.01) (88.14) (99.97) (80.97) (83.48) (85.88)
2017 203.37 3381.03 577.56 1042.02 346.73 5550.71
(51.33) (82.98) (99.50) (76.96) (87.09) (81.59)
2018 178.31 3661.68 937.27 1064.66 675.53 6517.45
(65.75) (88.59) (99.45) (83.54) (94.92) (88.88)
2019 190.09 3692.98 672.70 1155.73 794.13 6505.63
(67.70) (89.40) (101.05) (85.95) (94.18) (89.55)
Note: the numbers inside the bracket shows the percentage.
In 2018 percentage of total matured claims was 56.36 which was almost the same in 2019.
Survival benefits were increased to 18.51% which grew by a little from 17.38% in 2017.
Death claims were 3.70% and 3,86% respectively in 2018 and 2019. (graph 23)
Graph 23
Proportion of Claim Settlement of Different Sections (2015 to 2019)
51
Graph 24
Percentage of Claim Settlement
Graph 25
Claim Amount, Claim Settle and Percentage of Claim Settlement from 2015 to 2019
Total claims settled in 2017 accounted for BDT 5,550.71 crore which was 81.59% of total
intimated claims. The figure followed the increasing trend in the subsequent years. In 2018
total settled claims was BDT 6,517 crore that is equivalent to 88.87 % of total intimated
claims and in subsequent years this rate increased to 89.55%. Because of IDRA’s numerous
initiatives and putting continuous pressure on insurers claim settlement rates were increased
(graph 25).
52
Number of Settled Insurance Claims
Chart 29 shows the number of death claims, matured claims, surrendered claims, survival
benefits, group and health claims, and a total number of claims. The table is giving mixed
trends in the case of the total number of claims settlements. From 2016 the number of claim
settlements shows a decreasing trend. In 2016 total number of settled claims was 29,70,040
which fell drastically to 20,74,816 in 2019. On the other hand, in terms of amount, a higher
percentage of claims were settled in 2018 and 2019 compared to 2016 and 2017. However in
terms of the number of policies, higher number of claims were settled in 2016 and 2017
compared to 2018 and 2019. It means that the sum assured value of policies belonging to 2018
and 2017 is higher than that of the previous two years.
Chart 29
Class Wise Number of Initimated Claims from 2015 to 2019 (BDT Crore)
Year Death
claim
Matured
claim
Surrender
claim
Survival
Benefits
Group and
health
total
number of
claim
2015 29428 1916524 95890 706205 44509 2792556
2016 29439 2168594 90477 622665 58865 2970040
2017 33957 1780941 92016 666267 140412 2713593
2018 30246 1462254 121764 649341 163032 2426637
2019 29346 1169540 82922 598820 194188 2074816
The chart 29 and 30 show the number of claims intimated and settled from the year 2015 to
2019. The total number of claims generated from death claim, matured claim, and survival
Benefits, claims from group and health policyholders and the total number of claims. In 2018
the total number of 30246 number of death claims were initiated out of which 70.52% was
settled. The figure was almost same in 2019. In 2019 the total number of intimated claims
from the domain of death was 29346 out of which 21941 claims were settlemd. In these two
years 90.27% and 89.256% of total matured policies were settled.
A good number of policies were surrendered during the year 2018 which was 121764 and in
2019 the number of surrendered policy reduced to 82922. The total number of survival
benefits were 649341 and 598820 respectively in the year 2018 and 2019 whereas 84.51% and
85.13% of total survival claims were settled during these two years.
A total numbers of 1,63,032 claims were made during the year 2018 agianst that 159400
claims were settled during the same year from the group and health segment. The number of
claims increased in 2019 and reached 194188 out of which total 187905 claims were settled
during the same year.
53
As a whole, the number of total claims were 24,26,637 and 20,74,816 claims were intimated
aginst the 21,69,056 and 18,44,146 claims were settled respectively in 2018 and 2019 which
represent 89.39% and 88.88%.
Chart 30
Number of Claims Settled and Percentage of Claim Settlement (BDT crore)
Year Death
claim
Matured
Claim
Surrender
claim
Survival
Benefit
Group &
health
Claim
Total
Claim
2015 19709 1597707 92896 530960 41019 2282291
(66.97) (83.36) (96.88) (75.18) (92.16) (81.73)
2016 18591 1882902 86941 497557 54838 2540829
(63.15) (86.83) (96.09) (79.91) (93.16) (85.55)
2017 22668 1475117 86414 490131 126090 2200420
(66.76) (82.83) (93.91) (73.56) (89.80) (81.09)
2018 21328 1319981 119571 548776 159400 2169056
(70.52) (90.27) (98.20) (84.51) (97.77) (89.39)
2019 21941 1043881 80618 509801 187905 1844146
(74.77) (89.256) (97.22) (85.13) (96.76) (88.88)
Note: Percentage shows in a bracket
Policyholders’ Liability and Actuarial Surplus
Chart 31
Net Policy holder’s Liability and Actuarial Surplus (BDT Crore)
Year
Policyholders’
Liabilities
Opening
surplus
Current
Surplus
Total
surplus
Growth %
2015
23851.00 1008.99 1716.12 2725.11 8.70
2016 25134.92 1249.09 1584.67 2833.75 3.99
2017 26608.10 1116.57 1740.06 2856.63 0.81
2018 28040.90 1043.64 1689.55 2733.18 (4.32)
2019 25181.96 544.44 1548.14 2092.59 (23.44)
Actuarial surplus is determined according to section 30 of the insurance act 2010. The
actuarial valuation process is being conducted by an actuary to ascertain the surplus or deficit.
Excess management expenses, low investment return, and capital loss reduce the fund size
which ultimately affects the valuation result. According to section 82 of the insurance act of
2010 in case of any surplus generated from the valuation process is distributed to the
policyholders as prescribed by the act. Net policyholders' liability and surpluses or deficits are
shown in chart 31.
54
Paid-up Capital
The total Paid-up capital of all the insurers stood at BDT 983.17 crore at the end of 2017
which increased by BDT 50.04 crore and reached BDT 1033.21 crore in 2018 and the
increasing trend continued and reached BDT 1047.68 crore at the end of 2019.
Chart 32
Paid-Up Capital in Life Insurance Business (BDT Crore)
Year Paid up capital Addition in current year
2015 850.11 46.62
2016 942.00 91.89
2017 983.17 41.17
2018 1033.21 50.04
2019 1047.68 14.47
Life insurers’ Agent
Agents are the backbone of the life insurance industry; they play a pivotal role in generating
premium income. For the lack of trust and social acceptance, the number of agents could not
be grown as required. 3.95 lac agents are quite a good number considering the size of the
industry. However due to lack of knowledge, they could not contribute to the industry as much
as expected. Employers of agents are increasing every year but the ratio of having 5 agents
against 1 employer of agents is not maintained.
In such cases, most of the insurers could not maintain this ratio strictly.
Chart 33
Number of Agent and Employer of Agents of Life Insurence
Year Agent Growth (%) Employer of agent Growth (%)
2015 406762 3.49 195773 3.30
2016 393889 -3.16 204085 4.25
2017 381839 -3.06 209824 2.81
2018 358604 -6.09 115449 -44.98
2019 395651 10.33 117248 1.56
IDRA has taken various effective and important initiatives to ensure the required training to
make a knowledge-based sales force to cater to people with prudent manners. These initiatives
are helping agents to cope with the changing environment and to equip them with core
knowledge of insurance. In absence of any other distribution channel insurers rely only on
agents right now. In some cases, insurers are appointing development officers instead of
agents which is conflicting with the laws. However, IDRA has taken very stringent measures
to tackle this issue (chart 33).
55
Branch of Life Insurers
Insurers are offering their products and services through thousands of branches across the
country. In 2017, 32 life insurers offered service in 492 Upazill across the country through
6551 branches. Due to the nature of business insurers set up thousands of branches across the
country that have been playing a vital role in delivering insurance services. In 2018 total
number of branches was 6,883 but reduced by 10.71% and reached 6,146 (chart 34) in 2019.
Chart 34
Branches in Life Insurance Business from 2015 to 2019
Year Beginning of
the year
Number of
Branch Opening
Number of
Branch Closing
Total Branch Change %
2015
7038 420 596 6862 -1.85
2016
6959 457 679 6737 -1.82
2017
6647 369 465 6551 -2.76
2018
6463 755 335 6883 5.07
2019
6360 269 483 6146 -10.71
Staff
The total number of manpower working in desk jobs stood at 24,558 at the end of 2018. A
total number of 1,377 staffs were appointed and 4,323 staffs were fired during the year 2019
and finally end balance was 23,299.
Chart 35
Number of Staff in Life Insurance Business
Year Beginning of the year appoinment fire End of the year
2015 27036 1994 3855 25175
2016 25308 2306 3998 23616
2017 23559 2201 3230 22530
2018 24558 2348 2154 24752
2019 23399 1377 4323 20453
Tax and VAT
All the insurers including life carriers pay tax and vat to the government exchequer. Year-wise
tax and vat payment is shown in chart 36. Tax and vat increase with the rise of premium
income. Insurers pay taxes on their earnings, besides they also provide value-added tax. In
2018 the amount of total tax and vat was 457.56 crore which was increased by 100 crores in
2019and reached 558.10 crores.
56
Chart 36
Tax and VAT collection by Life Insurer from 2015 to 2019 (BDT Crore)
Year Corporate Tax TDS VDS Tax and Vat
2015 310.28 110.96 23.51 444.75
2016 355.90 128.69 25.17 509.76
2017 285.05 136.96 30.94 452.95
2018 269.77 156.58 31.21 457.56
2019 343.11 174.91 40.08 558.10
Non- Life Insurance
Premium
The non-life insurance industry is comprised of 46 insurers including state-owned Shadahran
Bima Corporation (SBC). 2019 was a successful year for the non-life insurance industry. Like
the previous year, total non-life businesses were highly inclined towards fire insurance as
39.60% of the total insurance came from this segment. Despite having adverse conditions total
underwritten premium was 3,789.78 crore which was 3,393.94 crore in 2018. In 2019 business
expanded by 11.6% which is bit lower compared to 13.94% of 2018.
Fire, Marine, and Miscellaneous segments were the dominant segments that contributed the
maximum to total premium income in 2018 and the trend continued to 2019. Despite having
compulsion of mandatory motor insurance the picture is disappointing in a way that only 2.3
million motors were under insurance coverage out of 4.3 million motors. There is a huge
opportunity of introducing crop insurance, livestock insurance, depository insurance and
passenger insurance in our country.
The premium income of SBC is shown separately in chart 37. SBC is playing a dual role as
insurer and reinsurer. Only gross premium income of SBC was taken into account to avoid
double counting of the industry’s total premium income.
Chart 37
Amount of Gross Premium and Growth Rate in Non-Life Insurance Business (BDT Crore)
Year Gross
Premium
Fire Marine Motor Miscellaneous
2015
2643.01 1056.25 892.03 328.31 366.42
(8.07%) (12.08%) (-0.50%) (14.35%) (14.62%)
2016
2772.88 1140.79 919.54 345.05 367.49
(4.91%) (8.00%) (3.08%) (5.10%) (0.29%)
2017
2981.43 1195.14 1006.2 361.63 418.47
(7.52%) (4.76%) (9.42%) (4.81%) (13.87%)
57
Year Gross
Premium
Fire Marine Motor Miscellaneous
2018
3393.94 1317.79 1089.31 378.53 608.31
(13.84%) (10.26%) (8.26%) (4.67%) (45.37%)
2019
3789.78 1500.59 1242.60 398.12 648.47
(11.66%) (13.87%) (14.07%) (5.18%) (6.60%)
Note: Percentage shows in the bracket. The direct business premium of SBC was considered
to calculate the total growth rate of non-life premium income of the industry.
Chart 38
Direct Gross Premium Earned by SBC (2015-2019) (BDT Crore)
Year Fire Marine Motor Miscellaneous Gross Premium
2015
20.55 64.11 13.72 108.92 207.31
2016
25.58 91.78 14.13 92.01 223.49
2017
31.20 78.63 14.34 114.48 238.66
2018
51.19 98.52 15.86 186.48 352.05
2019
56.89 117.23 17.44 179.55 371.11
Graph 26
Growth Rate of Non-Life Insurers’ Premium Income (2015-2019)
Sub class wise gross premium income
Class-wise business achievements over gross premium income are shown in graph 28. Fire,
Marine, Motor, and miscellaneous business were considered as subclasses. Fire insurance
alone represents 40% of total business. Chart 37 and graph 27 are showing that total business
increased to BDT 1500.59 crore from BDT 1317.79 crore of 2018. Due to lack of proper
monitoring growth in motor insurance remained limited to 4.67% in 2018 and 5.18% in 2019.
58
Motor insurance is a popular business segment in many countries. On the other hand, In 2018
total marine insurance business was BDT 1,089.31 crore which increased by 14.07% and
reached BDT 1,242.60 crore in 2019. The marine segment capitalizes on the high growth of
the international business which results in extraordinary business growth in 2019. In 2015 the
total premium income of the miscellaneous segment was BDT 366.42 crore which expanded
by 66.01% in the last three years and increased to BDT 608.31 crore in 2018. In 2019 total
volume of business of the miscellaneous sector grew by 6.60% and expanded to BDT 648.47
crore.
Graph 27
Class wise Business Growth of Non-Life Sector (2015 to 2019)
Graph 28
Share of various Segment in Total Non-Life Insurance Business (2015 to 2019)
59
Graph 29
Business Segment wise Retention Rate in Precent from 2015 to 2019
Note: Excluding Shadharan Bima Corporation
Gross Premium and Reinsurance Premium of SBC
Gross Premium income, Net premium income and reinsurance income related informations are
shown in Chart 39 and Chart 40.
Chart 39
Gross Premium Income of SBC including Reinsurance Business (BDT Crore)
Year Direct Gross
Premium
Gross
Premium
Fire Marine Motor Miscellaneous
2015
207.31 861.45 378.56 211.12 13.72 258.05
2016
223.49 872.88 394.39 254.66 14.13 209.70
2017
238.66 932.43 427.85 231.87 14.34 258.36
2018
352.05 1144.43 442.75 271.38 15.86 414.54
2019
371.11 1300.17 555.70 309.97 17.44 417.07
Source: Information provided by Sadharan Bima Corporation (Some information may differ
from SBC Annual Report)
Chart 40
Reinsurance Premium paid by SBC (BDT Crore)
Year Fire Marine Motor Miscellaneous Total
2015
96.23 25.91 0.00 191.19 313.33
2016
92.36 28.47 0.00 169.66 290.50
2017
319.59 201.70 0.00 59.39 580.68
2018
147.92 35.85 0.00 335.55 519.33
2019
174.21 31.19 0.00 337.83 583.23
60
Market Share
Chart 41 and Graph 30 show that, Green Delta insurance company Limited (GDICL)
underwrote BDT 416.41 crore of premium income in 2019 which is equivalent to 10.99% of
the total market share and the highest among 46 non-life insurers. GDICL has been attaining
the first position for consecutive five years. GDICL achieved 13.20% business growth in
2019. This company launched a few products in the domain of health and agriculture area.
Pioneer insurance company earned BDT 322.3 crore of premium income lost its second
position and downed to the third position. Its total market share was reduced a bit from 8.87%
in 2018 to 8.50% in 2019 though it sealed a 7.00% growth rate in premium income from 2018.
Graph 30
Top ten Insurers in Non-Life Insurance Market from 2016 to 2019
Graph 30 shows the top ten insurers’market share. These 10 insurers’ total earnings were 55%
of total premium income. Reliance insurance company attained the fourth position earning
BDT 300.41 crore of premium income equivalent to 7.93% of premium income in 2019 which
is close to 7.92% of 2018.
Total growth in gross premium income was 11.71% in 2018. Shadaran Bima Corporation
attained in the second position earning 371.11 core of direct premium income. The growth of
direct premium income was 5.41% in 2018. According to the direction given by the Ministry
of Commerce in 1985 50% of gross premium, income was distributed to all the insurers
equally.
Pragati insurance was in the fifth position sealing 6.35% of market share high in a bit from
6.05% of 2018. Pragati achieved extraordinary growth in premium income which was 17.19%
in 2019. Apart from these insurers discussed above Estland, Rupali, BGIC, and Phoneix were
the rest of the companies on the top ten list.
61
Chart: 41
Non-Life Insurers’ Gross Premium Income, Market Share and Growth Rate
Insurers Gross
Premium
(BDT
Crore)
Market
Share
(%)
Growth
in
premium
(%)
Insurers Gross
Premium
(BDT
Crore)
Market
Share
(%)
Growth
In
Premium
(%)
Agrani
42.32 1.12 10.49 Mercantile 37.76 1.00 10.21
Asia
63.19 1.67 2.41 Nitol 73.04 1.93 1.13
Asia
Pacific
56.43 1.49 7.20 Nothern
General
61.82 1.63 33.70
Co
-operative
13.43 0.35 -1.70 Paramount 29.18 0.77 11.83
BGIC
70.58 1.86 12.45 Peoples 71.08 1.88 1.11
BD
National
52.05 1.37 3.70 Phoneix 78.06 2.06 2.80
Central
36.21 0.96 3.22 Pioneer 322.23 8.50 7.00
City
General
44.67 1.18 2.40 Pragati 240.65 6.35 17.19
Continental
52.41 1.38 -15.17 Prime 71.17 1.88 4.22
Crystal
52.73 1.39 22.26 Provati 77.17 2.04 58.97
Desh
General
30.82 0.81 51.52 Purabi
General
9.13 0.24 16.73
Dhaka
37.23 0.98 13.94 Reliance 300.41 7.93 11.71
East Land
103.53 2.73 -7.11 Republic 68.03 1.80 27.30
Eastern
48.14 1.27 4.48 Rupali 87.11 2.30 -0.51
Express
48.98 1.29 19.78 SBC 371.11 9.79 5.41
Federal
61.34 1.62 19.85 Senakalyan
57.61 1.52 58.32
Global
68.22 1.80 70.64 Sikdheer 29.48 0.78 -8.91
Green
Delta
416.41 10.99 13.20 Sonar
Bangla
56.82 1.50 26.83
Islami
Insurance
BD
55.69 1.47 33.96 South Asia 20.03 0.53 102.77
Islami
Commercial
50.2 1.32 8.46 Standard 49.92 1.32 5.44
Janata
33.07 0.87 -5.67 Takaful 49.49 1.31 15.54
Karnafuli
37.01 0.98 13.30 Union 44.56 1.18 12.00
Meghna
58.1 1.53 25.79 United 51.13 1.35 8.24
Total
3789.78 100 11.66
Number of Policies
Chart 42 shows the segment-wise issued policies from 2015 to 2019. The aggregate amount of
total issued policies was 3114063 in 2019 higher by 177245 from 2108. Total issued policies
62
were 1948722 in 2015 and a total 1165341 policies were added to the total number from the
beginning of 2016 to the end of 2019. Motor policies are higher in numbers but smaller in
amount. Therefore, the total number of policies is dominated by motor insurance which is
71.79% in 2018 and 72.90 percent in 2019. Whereas, in terms of the total number of policies
fire insurance is lagging behind but due to its high sum assured value maximum premium
generates from fire insurance. In Bangladesh motor, insurance is purchased to fill the
regulatory compulsion though in the recent past this compulsion has been withdrawn by
BTRC. Motor insurance contribution is the minimum in total premium income as insured
procure motor insurance to met up act liability only which is featured with low premium
income. In 2109 all the segments showed positive growth which dipicts in graph 31 and chart
42. Growth in terms of policies was 21.42% and 6.04% respectively in the years 2018 and
2019.
Chart 42
Segment-Wise Number of Policies (2015 to 2019)
Year Fire Marine Motor Miscella. Total
2015
255075 387009 1235308 71330 1948722
2016
262202 414233 1413726 75136 2165297
2017
273677 429260 1625634 90059 2418630
2018
285044 492416 2108452 113906 2936818
2019
283203 446227 2270068 114565 3114063
Graph 31
Non-life Insurers’ Portfolio Wise Policy Growth Rate in Percent (2015 to 2019)
63
Graph 32
Policy Portfolio wise Market Share in Non-Life Industry (2015-2019)
Management Expense and Management Expense Ratio
Chart 43
Actual Management Expenses, Allowable Management Expenses, and Excess Management
Expenses from 2015 to 2019
Year Actual
Management
Expense
(BDT Crore)
Allowable
Management
Expenses
(BDT Crore)
Excess
Management
Expenses
(BDT Crore)
Percentage of
excess Management
over allowable limit
2015
859.43 557.57 301.86 54.13
2016
870.92 597.44 273.47 45.77
2017
930.78 693.05 237.73 34.31
2018
989.28 954.06 35.23 3.69
2019
1,086.03 1,112.06 (26.03) -2.34
Note: SBC information is not included here.
All the 45 private insurers' expenses accumulated in two different accounts namely actual
management expenses, allowable management expenses, and excess management expenses
resulted from subtracting actual management expenses from allowable management expenses.
Following this process, it was disclosed that the number of excess management expenses from
2015 to 2018 were 301.86 crores, 273.47 crores, 237.73 crores, and 35.23 crores respectively.
Only the year 2019 management expenses were below the threshold by 26.03 crores.
However, from 2015 to 2019 trend of management expenses followed a downward trend
which was reflected in the excess management expenses ratio. Despite overall management,
expenses are less than the allowable limit but some of the insurers are still incurring expenses
more than the allowable limit otherwise this trend could be less than the allowable limit.
64
Graph 33
Changes of Management Expenses and Excess Management Expenses (2015 to 2019)
Note: SBC information is not included here.
Chart 44
Ratio of Management Expenses in Non-Life Insurance (2015-2019)
Year Management expense+
Net Commission
(BDT Crore)
Net Premium
(BDT Crore)
Management
Expenses Ratio (%)
2015
644.77 1317.44 48.94
2016
634.87 1365.41 46.50
2017
705.12 1531.37 46.05
2018
1,173.67 1,661.41 70.64
2019
1,276.13 1,888.09 67.59
Note: SBC information is not included here.
Graph 34
Ratio of Management Expenses in Non-Life Sector (from 2015- 2019)
Note: SBC information is not included here.
65
The premium income to management expenses ratio is shown in graph 34. From 2015 to 2019
these rates were 48.94%, 46.50%, 46.05%, 70.64% and 67.59% respectively. High
management expenses of a few insurers have been impacting the premium income to
management expense ratio. The optimum level of management expenses in the case of non-
life insurance is 35% below. Therefore, the trend of expenses is incurring in the non-life sector
is alarming. The high management cost impacts the claim settlement ratio and profitability.
Combined Ratio
The Combined ratio derives from dividing all the management expenses including calims
payment by the total underwritten premium income. Investment income is not takes into
account in calculating combine ratio. This ratio reveals the underwriting profit of insurers.
Combine ration is below 100 means insurers generating underwriting profits or vice versa.
Chart 45 shows that, combine ratio has been increasing gradually from 2015 to 2018 but
declined sharply in 2019. In 2018 combine ratio was 98.44% therefore industry earned 1.56%
underwriting profit whereas underwritten profits has jumped to 10.22% in 2019.
Chart 45
Premium, Management Expenses, Commission and Combined Ratio (%) (2015 to 2019)
Year
Net
Premium
(BDT
Crore)
Management
Expenses
(BDT Crore)
Net
Commission
Paid (BDT
Crore)
Net Claim
Paid
(BDT Crore)
Total
Expense
(BDT Crore)
Combined
Ratio (%)
2015
1278.66
497.94
124.96
311.87
934.77
73.11
2016
1327.81
499.71
114.88
302.3
916.89
69.05
2017
1485.95
540.48
141.03
338.33
1019.84
68.63
2018
1,661.41
989.28
184.39
461.75
1,635.42
98.44
2019
1,888.09
1,086.03
190.11
418.91
1,695.05
89.78
Note: SBC information is not included here.
Assets
In the insurance business, customers do not get any goods or services in return for paying the
premium but get compensation against future benefits or future losses subject to certain
conditions. The insurers’ assets act as a last resort for the policyholders. The insurers’ ability
to settle insurance claims and external debt by existing assets is a crucial indicator. The
insurer's success is also driven by its investment management. Because the period of earning
premium to settling claim insurers proper investment could generate more money to augment
its fund size. In contrast, if an investor invests in risky and low-yielding avenues then it has to
inject more capital to continue the business. It is a very important task of the regulator to
analyze continuously whether the insurers’ quality of assets, liquidity, and selection of assets
are well enough to settle insurance claims or not. There should have a balance between
shareholders' profit needs and ensuring policyholders' interest.
66
Sector-wise investment from 2015 to the end of 31st December 2019 is shown in chart 46 and
graph 35. In 2018 total assets of non-life insurers were taka 11293.23 crores thas was
increased by 6.92% in 2019 and the total figure reached taka 12074.70 crores. Chart 46 depicts
that except for a few sectors like Receiveable from reinsurance, Advance and Deposit and
Investment (without FDR) assets in other sectors have been growing in the last two years.
Chart 46
Concentration of Assets as at 31st December 2018 and 2019 (BDT Crore)
S.L
Number
Sector of Assets 2018 % 2019 %
1
Furniture and Fixture 43.73 0.39 35.18 0.29
2
Land, Land Development, and Building 1,170.23
10.36 1211.91 10.04
3
Others Fixed Assets 309.15 2.74 378.32 3.13
4
Investment (except fixed deposit) 1,905.66
16.87 1883.89 15.6
5
Interest, Dividend, Rent accrued but not
due
225.60 2.00 107.76 0.89
6
Preliminary Expenses 0.00 0.00 0 0
7
Pre-Operation Expense 12.70 0.11 13.99 0.12
8
Defferd Expense 8.11 0.07 572.33 4.74
9
Received from Re-insurance 1,681.06
14.89 1073.07 8.89
10
Advance and Deposit 1,289.95
11.42 1268.96 10.51
11
Fixed Deposit, Cash and Cash
Equivalent
4,063.35
35.98 4418.39 36.59
12
Stamp, Form and Stock of stationary 521.89 4.62 8.67 0.07
13
Others Assets 61.80 0.55 1102.23 9.13
14
Total Assets 11293.23 100 12074.70 100
Due to the increasing trend of fire claims, the number of lodging claims by insurers to the
reinsurers also increased proportionately. In 2018 claims to reinsurers of fire insurance
increased by 4.87% which results in a 14.89% increase in Receiveable to reinsurers from the
last year but reduced to 8.89% in 2019. Investment (except fixed deposit) is a major area
where insurers invest a good amount of assets where insurer invested taka 1905.66 crore in
2018 which reduced a bit and reached taka 1,883.89 crore.
67
Graph 35
Asset in various classes from 2016 to 2019
Advance and Deposit increased in 2019 by 8.74% compared to 2018. Growth of investment in
‘Fixed deposit including cash and cash equivalent' was 35.98% in 2018 that rate increased a
bit and reached 36.59%.
Graph 36
Amount of Total Assets in Non-Life Insurance and Growth Rates (2015 to 2019)
68
Graph 37
Top ten Non-Life Insures’ Based on Assets
Companys’ assets volume gives a good insight into the ability, value of the company,
goodwill, and financial conditions. Graph 37 shows that state-owned SBC holds 30.66% of
total assets out of 46 insurers in the non-life sector in 2019. Ten insurers namely SBC, Green
delta, Reliance, Pragati, Pioneer, Eastland, Phoenix, Rupali, Eastern and Peoples insurance as
a whole hold 64% of total assets, and the rest of the 36 companies retain 36% assets.
Investment
Asset and Liability management is the main function of investment. Insurers have to retain
necessary assets to settle expected and unexpected claims. They have to have the ability to
cope with the negative impact resulting from the difference of assets and liabilities. To earn
such ability, non-life insurers need to invest their assets following the investment regulation.
To meet up the solvency margin requirement and settlement of an insurance claim, insurers
have to maintain adequate liquid assets. Chart 47 and graph 38 show that non-life insurers
invested below 2% of their total assets in government securities which are required to increase
to ensure the interest of policyholders. IDRA has been working on introducing updated
solvency margin regulation. Though investment regulation came into effect in 2019. Data
shows that non-life insurers invested 57% of their total investable funds to various banks and
financial institutions, 24% in the share market, and the rest of 12-14% invested in
unproductive land and buildings which is not acceptable.
69
Chart 47
Investment at the end of 2018 and 2019 in Non-Life Insurance sectors (BDT Crore)
S.L
No.
Investment sector 2018 % 2019 %
1 Government securities 107.27 1.79 114.25 1.81
2 Mutual Fund/Unit Fund 129.53 2.16 127.88 2.02
3 Share 1584.93 26.48 1527.92 24.16
4 Debenture 9.39 0.16 9.84 0.16
5 Fixed Assets 829.16 13.86 735.56 11.63
6 Fixed Deposit 3179.4 53.13 3605.31 57.00
7 Bridge Finance 0 0.00 0 0.00
8 Others Invesment 144.87 2.42 203.92 3.22
9 Total Investment 5984.55 100 6324.67 100
Graph 40 shows that the top ten insurers invested 65% of total assets in the last three years
starting from 2017 to 2019. These ten insurers were SBC, Green delta, Reliance, Eastland,
Pioneer, Rupali, Dhaka, Peoples, United, and Phoneix insurance company. Graph 41 reveals
that in 2015 proportion of assets and investments, it was 56.37% but the rate has been falling
since 2015 and reached 52.38% at the end of 2019.
In the non-life sector, the investment rate should be 65%-70% of total assets but in the last five
years, the non-life sector could not achieve these rates. Due to inefficient investment
management in the non-life sector asset and investment ratio was not appropriate which
negatively affected the claim settlement rates.
Graph 38
Share of Investmet in Different Sectors (2018 to 2019)
70
Graph 39
Amount of Investment and Growth of Investment in Non-Life Sector (2015-2019)
Graph 40
Top Ten Insurers Share of Investment from 2017 to 2019
71
Graph 41
Ratio of Assets and Investment in Non-Life Sector (2015-2019)
Investment Income
Return on investment increases the assets. Chart 48 shows the last five years' investment
return. Investment return fall to 7.10% in 2018 from 8.57% in 2017. The fall of investment
return continued to 2019. In 2019 investment return deteriorated and declined to 6.88% from
7.10% of 2018. Interest is one of the major sources of income, hence increase or decrease in
interest rate impacts earnings.
Chart 48
Investment and Return on Investment (2015 to 2019)
Year Investment
(BDT Crore)
Investment Income
(BDT Crore)
Rate of Return (%)
2015
4883.85 388.72 7.96
2016
5188.85 400.18 7.71
2017
5854.93 501.95 8.57
2018
5984.55 424.61 7.10
2019
6324.67 435.21 6.88
Claim Settlement
Ensuring security against the risk is the general motive for all insures. It is necessary to
formulate following the insurance act, rules, and regulation an effective risk management
mechanism in place in which policyholders’ expectations must be incorporated. Prompt claim
72
settlement increases customer satisfaction and improves customer services. The automation
system can improve the insurer's claim settlement process.
In the non-life sector, all the events those trigger insurance claims are almost the same. In that
case, determining the liability of the claimant is essential to expedite and settle the claim
properly. Delaying in settling insurance claims because more expenses for the insurers.
Information relating to settled insurance claims and the number of settled insurance claims is
shown in chart 49 and graph 42 after gleaning information from insurers.
Chart 49
Class wise Claims Ratio and Total Claims Ratio (2015-2019)
Year Fire (%) Marine (%)
Motor (%) Miscellaneous (%)
Total claim(%)
2015
41.97 11.18 26.69 17.95 24.39
2016
32.97 12.05 26.77 26.32 22.77
2017
30.91 13.61 28.41 26.16 22.77
2018
36.58 14.35 24.72 38.44 25.80
2019
65.26 14.40 24.29 39.68 35.04
Graph 42
Sub-class basis Claim Settlement Ratio in Non-Life Sector from 2015 to 2019
Business portfolio-wise settled insurance claim has been shown in chart 49 and 50. Insurers'
financial conditions are being affected by the claim ratio. Statistics show that insurers earn
more premium than that of claim settlement amount which increases the profitability.
SBC is the only reinsurer in the non-life sector in our country but the law also allows it to
conduct regular insurance business. SBC is not maintaining separate accounts for regular
insurance and reinsurance businesses. Therefore, to ensure uniformity in the account, the
claim settlement ratio has been determined without consideration of SBC.
73
Net claim settlement rates were 25.80% and 35.04% respectively in 2018 and 2019. From
2015 to 2019 overall claim settlement rate was the highest in 2019 which is accounted for
35.04% whereas the fire insurance segment contributed by 65.26% compared to 36.58% in
2018. In the developed countries in the non-life domain, most of the claim intimates are
relating to motor insurance which is accounted for 60% or above. Whereas claims generated
from motor insurance remain within the range of 24% to 29% (chart 49 and graph 41) in
Bangladesh. Insurers are paying commission to intermediator instead of insurance agents,
moreover, insurers are also offering a discount to the customer which results in high
management expenses. As a result, insurers lose their ability to settle an insurance claim, and
in some cases, this inability becomes the prime cause of declining insurance claims.
Chart 50
Class Wise Amount of Claim in Non-Life Insurance sector (BDT Crore)
Year Fire Marine Motor Miscellaneous Total Claim
2015
1476.32 398.30 145.90 157.34 2177.86
2016
1375.40 374.03 159.97 166.56 2075.95
2017
1707.45 452.27 189.31 364.51 2713.54
2018
2224.37 461.63 152.59 294.46 3133.05
2019
1680.60 506.02 144.40 232.64 2563.66
In the non-life sector, most of the claims are fire insurance. Total 1680.60 corers of insurance
claim intimated by fire insurance policyholders’ the amount is accounted for 71% of total
insurance claims. The rest of the claims which are accounted for 29% came from the Motor,
Marine, and Miscellaneous sectors combined. Claims initiated from the marine segment
amounted to taka 461.63 crores equivalent to 14.73% of the total claim. In the same way, total
taka 152.59 and 294.46 crore initiated from the motor and miscellaneous segment
respectively. In 2019 total initiated claims were reduced to 2563.66 crores from 3133.05
crores. Like 2018, Fire is the most dominant sector from which maximum claims amount of
taka 1680.60 crores were intimidated then Marine came in the second most dominant sector
from which amounted to taka 506.02 cores of claims intimated.
Chart 51
Class Wise Gross Claim Settlement Amount in Non-Life sector (2015-2019) (BDT Crore)
Year Fire Marine Motor Miscellaneous Gross Claim Settlement
2015
746.81 145.30 82.76 53.68 1028.55
2016
553.85 196.08 85.65 70.16 905.74
2017
462.22 180.75 96.07 231.03 970.07
2018
196.49 102.47 88.93 84.33 472.23
2019
419.32 115.00 93.02 101.56 728.91
74
Graph 43
Class-wise Amount of Claims (2015 to 2019)
Percentage of settled claims
An analysis of the data from 2015 to 2019 shows that the insurance claims paid are much less
than the total insurance claims. In 2018, the amount of insurance claims paid against the total
insurance claims was 40.87% of which the maximum 60.68% insurance claims were paid in
the motor sector while only 36.38% of the insurance claims were paid in the marine insurance
sector. (chart 52)
2019 the highest insurance claim paied in the last 5 years amounting to 52.07% of the total
insurance claims. In the year 2019, the marine insurance sector has the lowest insurance claim
settled which is 27.81% while the miscellaneous sector has 103.87% insurance claim paied.
(chart 52)
Chart 52
Class-Wise Claim Settlement Rates (%) from 2015 to 2019
Year Fire Marine Motor Miscellaneous
Total Claim settlement
Rate
2015
50.59 36.48 56.72 34.12 47.23
2016
40.27 52.42 53.54 42.13 43.63
2017
27.07 39.97 50.75 63.38 35.75
2018
40.78 36.38 60.68 40.18 40.87
2019
48.54 27.81 68.28 103.87 52.07
75
Number of Claims
Chart 53 shows the total number of settled insurance claims. In 2018 total settled claims were
36624 which increased by 15.58% and reached 42377. The chart shows that in 2018 most of
the claims were generated from motor insurance which accounted for 13296 followed by
Miscellaneous 11862, Marine claim which represents 7956, and fire claim 3510.
Chart 53
Number of Claims in Non-Life Insurance Sector (2015-2019)
Year Fire Marine
Motor Miscellaneous
Total number of claim settlement
2015
3360 5495 10118 6999 25972
2016
3518 5928 11138 8780 29364
2017
3859 6675 12297 11108 33939
2018
3510 7956 13296 11862 36624
2019
3436 8646 13464 16831 42377
In 2019 scenario was changed, when maximum claims come from the miscellaneous segment
which represents 16831 claims followed by Motor Insurance activities 13468 claims marine
8646 claims, and fire 3436 claims (chart 53).
Graph 44
Segment wise Non-Life Insurer’s Total Claim (2015 to 2019)
76
Chart 54
Number of Claim Settlement and Percentage of claim Settlement (2015-2019) (BDT Crore)
Year Fire Marine Motor Miscellaneous Total Claim Settlement
2015
2085 4238 7683 6243 20249
(62.05) (77.12) (75.93) (89.20) (77.96)
2016
2028 4158 8107 7899 22192
(57.65) (70.14) (72.79) (89.97) (75.58)
2017
2106 4629 8700 10160 25595
(54.57) (69.35) (70.75) (91.47) (75.41)
2018
1705 4425 8960 9167 24257
(48.57) (55.61) (67.38) (77.28) (66.23)
2019
1837 4646 8550 13799 28832
(53.46) (53.73) (63.5) (81.98) (68.03)
Note: Number in bracket denotes percentage of settled claims.
The chart 54 shows the total number of claims settled and its percent over the total paid claim
amount. In 2018 total intimated claims were 36624 out of which 24257 claims were settled
which accounted for 66.23% of the total intimated claim. The settlement rate improved a bit in
2019 when 68.03% of total claims were settled. In 2019 total intimated claims accounted for
42377 out of which 28832 claims were settled (chart 54).
In the non-life sector in terms of the number of policy percentage of claim settlement rate was
within the range of 66% to 78% from 2015 to 2019. Whereas in terms of amount claim
settlement amount remains within the range of 35% to 53% because the high valued claim, for
example, fire claim, settlement rate was disappointing.
Branches
Due to nature of the business and country-wise presence of branch offices was very limited. In
2018 total branch offices were 1367 which increased by 11 branch offices in 2019 to 1378
branch office reach.
Graph 45
Number of Branches of Non-Life Insurers (2015-2019)
77
Agents
Selling insurance mostly depends on insurance though management of insurance agents is a
very difficult task for the insurer. In 2018 total number of insurance agents in the non-life
sector was 2607, the total number was increased by 72 and reached 2679. In 2015 total
number of agents was only 2,503. In the last five years, a total number of 176 new agents got
hired in the non-life sector (Graph-46). Average agents per company were only 58 (rounded)
which is very low. The low number of agents is one of the obstacles to the growth of the non-
life insurance business.
In reality in the non-life sector instead of agents, development workers are procuring insurance
business in exchange for receiving commission which is a clear violation of section 58 of the
insurance act 2010. IDRA has been monitoring insurance agent management very rigorously.
Graph 46
Number of Agents in Non-Life Insurance from 2015 to 2019
Staff
Chart 55 shows the total number of employees working in the Non-life industry. According to
the chart 58 in 2015, the total number of 16409 employees was working in 46 non-life
insurers. The number of total employees remained almost the same from 2015 to 2019. A total
number of 16,873 employees were working at the end of 2016. The number increased a bit and
reached 16,998 employees in 2017. In the following year, 212 employees were left and the
total number of employees declined to 16,786. This trend continued to till 2019; the total
number of employees was 16240 at the end of 2019.
78
Chart 55
Number of Staff in Non-Life Insurance Business
Year Beginning of the
year
New
recruitment
Sacked At the end of the year
2015
16248 1237 1094 16409
2016
16409 1482 1088 16873
2017
16807 1162 970 16998
2018
16209 1414 837 16786
2019
16199 2091 2050 16240
Man
Paid-up capital
The Total amount of paid-up capital was taka 1,712 crore at the end of 31st December 2017.
In the following year, the total taka 205.37 crore were added to the previous year and the total
amount reached taka 1,917.36 crore. In 2019 the amount of paid-up capital was improved by
taka 446.29 crore which increased paid-up capital to taka 2363.65 crore
(chart 56).
Chart 56
Amount of Paid Up Capital in Non-Life Insurance Business (BDT Crore)
Year sponsor Public Total Paid-up
capital
Increase/decrease
2015
716.02 776.29 1492.30 91.49
2016
712.38 864.50 1576.88 84.58
2017
806.40 905.59 1711.99 135.11
2018
900.93 1016.43 1917.36 205.37
2019
905.90 1457.76 2363.65 446.29
Stamp Duty
The government collects a good amount of money to its exchequer through insurance policy
stamps. The amount of total stamp duty was 82.44 core in 2018 and 93.72 crores in 2019.
Stamp duty increases with the raise of non-life premium income.
Chart 57
Stamps Duty paid by Non-Life insurers (2015-2019) (BDT Crore)
Year Fire Marine Motor Miscellaneous Total stamp duty
2015
1.02 75.59 1.15 0.64 78.40
2016
1.10 78.26 1.37 0.57 81.30
2017
1.23 76.22 1.46 2.53 81.45
2018
1.44 78.05 1.60 1.34 82.44
2019
1.26 89.57 1.98 0.92 93.72
79
Tax and VAT
Apart from the stamps duty insurers also pay corporate tax, vat to the government exchequer.
Chart 58 shows the time series data from 2015 to 2019. Non-life insurers paid the highest
amount of tax in 2015 amounting to taka 1,079.77 core and 2015 taka 1334.10 crores of total
tax deposited to government funds; the highest among the last five years. VAT, TDS, and
VDS were rising every year from 2015 to 2019, whereas corporate tax fell drastically from
2015 to 2018 however a little rise showed in the year 2019. On the other hand, total tax and
vat paid to government treasures amounting to taka 1041.74 and 1169.64 crore respectively in
the years 2018 and 2019.
Chart 58
Tax and VAT paid by the Non-Life Insurers (BDT Crore)
Year Tax Vat TDS VDS Total
2015
1079.77 196.81 47.08 10.44 1334.10
2016
572.28 216.36 50.02 13.68 852.34
2017
696.12 240.88 53.32 16.85 1007.17
2018
632.06 332.78 63.06 13.84 1041.74
2019
692.21 370.67 91.39 15.37 1169.64
80
Attachment 01
List of Licensed Life Insurers and Listed with Stock exchanges
Serial
Name of Insurer
Year of Registration
Status of Insurers
1 JBC 1973 State owned
2 Metlife 1974 Foreign Company
3 National 1985
Listed in the stock exchange
4 Delta 1986
Listed in the stock exchange
5 Sandhani 1990
Listed in the stock exchange
6 Meghna 1996
Listed in the stock exchange
7 Fareast Islami 2000
Listed in the stock exchange
8 Padma Islami 2000
Listed in the stock exchange
9 Popular 2000
Listed in the stock exchange
10 Pragati 2000
Listed in the stock exchange
11 Prime Islami 2000
Listed in the stock exchange
12 Progressive 2000
Listed in the stock exchange
13 Rupali 2000
Listed in the stock exchange
14 Sunlife 2000
Listed in the stock exchange
15 Baira Life 2000 Not listed
16 Golden life 1999 Not listed
17 Homeland 1996 Not listed
18 Sunflower 2000 Not listed
19 Best 2013 Not listed
20 Chartered 2013 Not listed
21 Bengal Islami 2013 Not listed
22 Protective Islami 2013 Not listed
23 Sonali Life 2013 Listed in stock exchange
24 Zenith Life 2013 Not listed
25 Alpha Life 2014 Not listed
26 Dimond 2014 Not listed
27 Guardian 2014 Not listed
28 Jamuna 2014 Not listed
29 Mercantile Islami 2014 Not listed
30 Swadesh 2014 Not listed
31 Trust Islami 2014 Not listed
32 LIC Bangladesh 2016 Not listed
33 Astha 2019 Not listed
34 Akij Takaful 2022 Not listed
35 NRB Islamic 2022 Not listed
81
Attachment 02
List of Licensed Non-Life Insurers and Listed with Stock exchanges
Serial Name of Insurer Year of Registration Status of Insurers
1 SBC 1973 Government Insurer
2
Green delta
1985
Listed in the stock exchange
3
BGIC
1985
Listed in the stock exchange
4
United
1985
Listed in the stock exchange
5
Peoples
1985
Listed in the stock exchange
6
Estern
1986
Listed in the stock exchange
7
Eastland
1986
Liste
d in the stock exchange
8
Pragati
1986
Listed in the stock exchange
9
Karnafuli
1986
Listed in the stock exchange
10
Pho
e
nix
1986
Listed in the stock exchange
11
Janata
1986
Listed in the stock exchange
12
Central
1987
Listed in the stock exchange
13
Federal
1987
Listed in the stock exchange
14
Rupali
1988
Listed in the stock exchange
15
Reliance
1988
Listed in the stock exchange
16
Purabi
1988
Listed in the stock exchange
17
Pioneer
1996
Listed in the stock exchange
18
City General
1996
Listed
in the stock exchange
19
Provati
1996
Listed in the stock exchange
20
Prime
1996
Listed in the stock exchange
21
Bangladesh National
1996
Listed in the stock exchange
22
Mercantile
1996
Listed in the stock exchange
23
Nothern
Islami
1996
Listed in th
e stock exchange
24
Islami Insurnac Bangladesh
1999
Listed in the stock exchange
25
Nitol
1999
Listed in the stock exchange
26
Standard
1999
Listed in the stock exchange
27
Pramount
1999
Listed in the stock exchange
28
Republic
1999
Listed in the stoc
k exchange
29
Asia Pacific
1999
Listed in the stock exchange
30
Continental
2000
Listed in the stock exchange
31
Asia
2000
Listed in the stock exchange
32
Dhaka
2000
Listed in the stock exchange
33
Sonar Bangla
2000
Listed in the stock exchange
34
A
grani
2000
Listed in the stock exchange
35
Global
2000
Listed in the stock exchange
36
Takaful Islami
2001
Listed in the stock exchange
37
BD Co
-
operative
1985
Not Applicable
38
Cryastal
1999
Not Listed
39
Meghna
1996
Not Listed
40
South Asia
1999
No
t Listed
41
Islami Commercial
1999
Not Listed
42
Union
2000
Not Listed
43
Desh General
2000
Listed in the stock exchange
44
Express
2000
Listed in the stock exchange
45 Senekallyan 2013 Not Listed
46 Sikder 2013 Not Listed
82
Attachment 03
Life Insurance policies approved by IDRA
No
Name of the
company
Name of the product
Date of product
approval
1 Alfa Islami
Deposit Insurance (with profit) 16.09.2014
Four Installment plan (with profit) 16.09.2014
Child assurance plan 16.09.2014
Single premium deposit Insurance (with
profit)
16.09.2014
Pension Insurance (with profit) 16.09.2014
Accidental Death Insurance (ADB) Rider
policy
16.09.2014
Accidental death and partial Disability
Insurance (PADB) Rider policy
16.09.2014
2 Astha Life
Astha Surukha (with profit) 30.09.2019
Astha Somoy Surakha (with profit) 30.09.2019
Astha Money Back Term 30.09.2019
3 Baira Life
All the products of Baira life were developed approval from then
Department of Insurance
4 Best Life
Expected three Installment Insurance (with
profit)
06.02.2013
Deposit Insurance plan (with profit) 06.02.2013
Deposit Insurance plan (without profit) 06.02.2013
Premium Return Insurance plan (Guarantied
profit)
06.02.2013
Child assurance plan (with profit) 06.02.2013
Double Benefit single Savings Plan 06.02.2013
Child expenses educatory insurance 06.02.2013
Hajj Bima (with profit) 06.02.2013
Denmohor Bima 06.02.2013
5 Chartered Life
Three Installment plan (with profit) 11.12.2013
Five years installment plan (with profit) 11.12.2013
Term Insurance (with profit) 11.12.2013
Term Insurance (without profit) 11.12.2013
Money Back Insurance 11.12.2013
Single Installment Insurance (without profit) 23.022014
Pension Insurance (without profit) 23.022014
Child education Insurance (without profit) 23.022014
83
No
Name of the
company
Name of the product
Date of product
approval
Child education Insurance (with profit) 23.022014
Monthly saving Insurance (with profit) 11.12.2013
Hajj bima (with profit) 11.12.2013
Denmohor Bima (with profit) 11.12.2013
Group Insurance (without profit) 23.02.2014
Group Insurance (with profit) 23.02.2014
Manpower Export Insurance (with profit) 11.12.2013
Group Health Insurance 26.09.2016
6 Diamond Life
Expected three Installment Insurance Plan
(with profit)
01.02.2014
Expected Four Installment Insurance Plan
(with profit) 01.02.2014
Expected Five Installment Insurance Plan
(with profit) 01.02.2014
Ordinary Endowment Plan (with profit) 01.02.2014
Ordinary Endowment Plan (without profit) 01.02.2014
7 Delta Life
Monthly micro saving insurance (with profit) 07.01.2015
Quarterly saving insurance plan (with profit) 07.01.2015
Half-yearly saving insurance plan (with
profit)
07.01.2015
Yearly saving insurance plan (with profit) 07.01.2015
Term based aumalia life Insurance plane 07.01.2015
Saving Insurance plan (with profit)
microinsurance
23.12.2019
8
Fareast Islami
Life
Term based Insurance plan (without profit) 22.09.2014
Monthly Installment Insurance (with profit) 22.09.2014
Installment Insurance plan (with profit) 22.09.2014
Group Health Insurance plan 22.09.2014
Personal Health Insurance plan 22.09.2014
9 Golden Life
All the products of Golden Life were Approved by the controller
of insurance .
10 Guardian Life
Group Insurance 06.10.2019
Borrowers Credit Sheild Insurance Plan 21.10.2019
Credit Sheild Loan 27.12.2018
Easy Life Insurance 31.05.2018
Easy Life Insurance Plus 31.05.2018
84
No
Name of the
company
Name of the product
Date of product
approval
Easy Life Special 31.05.2018
Easy Life Special Plus 31.05.2018
Monthly Saving Insurance Plan (with profit) 06.08.2014
Monthly Saving Insurance Plan (without
profit)
06.08.2014
Four-year installment insurance 11.02.2013
Single Life Insurance Plan 11.02.2013
Pension Insurance 11.02.2013
Group Insurance 11.02.2013
Guardian Growth Insurance 06.08.2017
Guardian Prosperity 06.08.2017
Single Term Insurance (Guardian Protection)
06.08.2017
Guardian Saving 10.11.2014
BRAC Bank SME Loan Protection Insurance
Plan
10.11.2014
Five Years Installment Insurance 25.09.2013
Three Installment Insurance Plan 25.09.2013
11
Homeland Life
Approval of all the product of homeland life have been taken
from the controller of insurance
12 Jamuna Life
Single-Premium Plan (without profit) 29.03.2016
Assurance cum pension plan (without profit) 29.03.2016
Group term Insurance 29.03.2016
Child protection Insurance plan (with profit) 29.03.2016
Monthly saving insurance plan (with profit) 20.11.2017
Monthly saving insurance plan (without
profit)
20.11.2017
Term Insurance 24.11.2014
Expected term insurance (three installment) 24.11.2014
Expected insurance (five installment) 24.11.2014
Equal installment plan (guarantee payment) 24.11.2014
Saving Insurance (without profit) 24.11.2014
13
Jiban Bima
Corporation
Social Protection Insurance (with profit) 03.07.2011
Insurance for expatriate 02.10.2011
Pramila DPS (with profit) 18.12.2017
Hajj bima (with profit) 18.12.2017
85
No
Name of the
company
Name of the product
Date of product
approval
Insurance for Expatriate Insurance 11.12.2019
Bangabandhu universal Insurance plan (with
profit) 05.10.2020
Bangabandhu Education insurance 23.02.2021
14
Life Insurance
Corporation
Bangladesh
LIC life saving 21.12.2015
LIC Single payment endowment plan 21.12.2015
LIC Jibon Ananda 21.12.2015
LIC money back plan (25 years) 21.12.2015
LIC money back plan (20 years) 21.12.2015
LIC 1 year group plan 17.01.2017
LIC Single premium group plan 17.01.2017
LIC group credit life insurance plan 17.01.2017
LIC Pension plan 17.01.2017
LIC diamond plan 30.07.2018
LIC Young Citizen plan 14.09.2018
LIC Grow fast 02.10.2019
LIC health fast 10.12.2019
LIC Jibon Tilottama 09.07.2020
15 Meghna Life
Hajj bima (with profit) 25.02.2014
Single Premium Insurance (without profit) 25.02.2014
Denmohor Bima plan (with profit) 25.02.2014
16
Marcentile
Islame
Half yearly insurance plan
25.09.2013
Term insurance (with profit)
25.09.2013
Three installment plan
25.09.2013
Four installment plan
25.09.2013
Five installment plan
24.05.2016
Hajj Bima (with profit)
24.05.2016
Denmohor Bima (with profit)
24.05.2016
Children Security Insurance (with profit)
24.05.2016
Single Insurance plan (without profit)
24.05.2016
Term group Insurance (Need to renewed in
every year)
24.05.2016
Term group life insurance
24.05.2016
Pension Insurance
24.05.2016
Group Life Rider (without profit)
24.05.2016
Monthly saving insurance plan (with profit)
24.05.2016
Mercentile saving Insurance plan (without
profit) 24.05.2016
86
No
Name of the
company
Name of the product
Date of product
approval
17 Metlife
Premium Returnable critical 01.12.2013
01.12.2013
01.12.2013
18 National Life
Assurance cum Pension (without profit) 07.12.2015
Monthly saving insurance plan MDM (with
profit) 07.12.2015
Monthly saving insurance MSI (with profit) 19.12.2017
Three Installment plan 07.12.2015
Four Installment plan 07.12.2015
19
NRB Global
Life
Term Insurance (with profit) 10.09.2013
Term Insurance (without profit) 10.09.2013
Expected Term insurance (three installments) 10.09.2013
Expected Term insurance (five installments) 10.09.2013
Money-back plan (guaranteed profit) 10.09.2013
Single payment plan (without profit) 24.12.2013
Child Security insurance plan (with profit) 24.12.2013
Pension insurance (without profit) 24.12.2013
Group insurance and Health insurance 24.12.2013
Monthly saving insurance plan (with plan) 01.06.2015
Denmohor Bima (without interest) 01.06.2015
Hajj Bima ( free from interest) 01.06.2015
20 Padma Islami
All products were taken approval from the controller of insurance
21 Popular life
All products were taken approval from the controller of insurance
22
Prime Islami
Life
Rider group health insurance plan 03.07.2018
Family protection insurance plan 17.11.2014
Janata saving plan 17.11.2014
23 Pragati Life
Unit Link Life Insurance plan 17.11.2014
Monthly saving insurance plan (with profit) 06.03.2019
Samoik life Insurance policy (without profit) 13.02.2019
International Healthcare Insurance policy 13.02.2019
24
Progressive
Life
All products were taken approval from the controller of insurance
87
No
Name of the
company
Name of the product
Date of product
approval
25
Protective
Islami
Five installments (with profit) 25.04.2013
Four installments (with profit) 25.04.2013
Multiple installments (with profit) 25.04.2013
Term insurance (with profit) 25.04.2013
Three payment insurance (with profit) 25.04.2013
Single installment plan (without profit) 25.04.2013
Child protection insurance plan (with profit) 12.10.2014
Pension insurance (without profit)
12.10.2014
Hajj Insurance (with profit)
12.10.2014
Denmohor insurance (with profit)
12.10.2014
Money back plan (guaranteed plan)
12.10.2014
Group term life insurance plan (without
profit)
15.112015
Group health insurance plan
15.112015
Monthly saving insurance plan (with profit)
12.07.2017
Two payment monthly insurance plan
21.112019
26 Rupali Life
Double benefit insurance plan (with profit)
12.01.2015
Single payment insurance plan (without
profit)
12.01.2015
27 Sandhani Life
Payment Bima plan (with profit) 07.05.2018
28
Sawdesh Life
Single payment insurance plan (without
profit) 29.10.2014
Half yearly insurance plan 29.10.2014
Expected term insurance plan (with profit)
three payment 29.10.2014
Expected term insurance plan (with profit)
Four payment 29.10.2014
Guaranteed Pension insurance plan (without
profit) 29.10.2014
Denmohor Bima (with profit) 29.10.2014
Hajj Bima (with profit) 29.10.2014
88
No
Name of the
company
Name of the product
Date of product
approval
Term end payment plan (with profit) 29.10.2014
General term insurance plan (without profit) 29.10.2014
General term life insurance plan (with profit) 29.10.2014
Sawdesh monthly saving insurance plan
(without profit) 29.10.2014
Sawdesh monthly saving insurance plan
(with profit) 29.10.2014
Group insurance 29.10.2014
Guaranteed child protection insurance plan
(with profit) 02.09.2015
Monthly saving insurance plan (with profit) 02.09.2015
29 Sonali Life
Saving insurance plan (with profit) 01.11.2016
Child protection insurance plan (with profit) 01.11.2016
Education insurance plan
(with profit)
01.11.2016
Single premium insurance plan (without
profit) 01.11.2016
Assurance cum Pension insurance plan
(without profit)
01.11.2016
Denmohor insurance plan (with profit)
01.11.2016
Hajj Bima plan (with profit) 01.11.2016
Monthly saving insurance plan (with profit) 01.11.2016
Monthly micro saving insurance plan (with
profit) 01.11.2016
Sonali Credit insurance 01.11.2016
Group and Rider insurance 30.07.2013
Accidental death claim 30.07.2013
Permanent disability and Accidental 30.07.2013
General saving insurance plan (with profit) 30.07.2013
Money back term insurance plan (Guaranteed
profit) 30.07.2013
Expected saving insurance plan (with profit
three installment) 30.07.2013
Expected saving insurance plane with profit
(payable in five installment) 30.07.2013
General saving insurance plan (without
profit)
30.07.2013
30 Sunflower
All the products of sunflower life were peri netted by then
controller of insurance
31 Sunlife
Group saving term insurance 10.08.2017
89
No
Name of the
company
Name of the product
Date of product
approval
32
Trust Islami
child protection insurance plan 19.10.2015
Pension insurance 19.10.2015
Denmohor Bima 19.10.2015
Group Insurance and Rider insurance plan 19.10.2015
Rider policy
inclindual
19.10.2015
Accidental life i
nsurance plan
19.10.2015
Permanent disability and accidental insurance
19.10.2015
Monthly saving insurance plan (with profit) 19.10.2015
Single insurance plan (without profit) 19.10.2015
General term insurance (with profit) 12.02.2014
Expec
ted life insurance plan (with profit)
12.02.2014
Expected term insurance Four installments
(with profit) 12.02.2014
Expected term insurance with profit (Five
installment)
12.02.2014
Half yearly installment plan (with profit)
12.02.2014
33 Zenith Islami
Saving insurance plan (with profit) 25.02.2014
Half yearly insurance plan (with profit) 25.02.2014
Three installment insurance plan (with profit) 25.02.2014
Four installment insurance plan (with profit) 25.02.2014
Five Installment insurance plan (with plan) 25.02.2014
Hajj Bima plan (with profit) 25.02.2014
Denmohor bima (with profit) 25.02.2014
child Protection insurance plan (with profit) 25.02.2014
Education insurance plan (with profit) 25.02.2014
Single Saving insurance plan 25.02.2014
Pension Insurance (without profit) 14.07.2014
Group life insurance plan 14.07.2014
Group Endowment insurance plan (without
profit) 14.07.2014
Monthly saving insurance plan (with profit) 25.02.2015
Monthly saving insurance plan (Three
installment) (with profit) 25.02.2015
Expected single installment plan (with profit) 12.03.2018
Expected single installment insurance plan
(without profit) 12.03.2018
Insurance for couple 12.03.2018
Group Hospital treatment insurance 12.03.2018
90
Attachment 04
Non-Life Insurance Products are approved by IDRA
No Name of the Product Circular no
Date of product
approval
1
Nibedita Insurance plan (only for
women)
Non-life-38/2014 04.05.2014
2
Financial insurance policy for
Bangladesh Tafsil bank
Non-life-41/2014 10.09.2014
3 Hajj and umrah insurance Non-life-41/2014 10.09.2014
4 Prime health insurance Non-life-41/2014 10.09.2014
5 GD health insurance Non-life-41/2014 10.09.2014
6 Niramoy Micro health insurance Non-life-42/2015 29.01.2015
7
8
Insurance for expatriate workers
irrespective of age
Non-life-43/2015 15.02.2015
9 MassHealth insurance plan Non-life-43/2015 15.02.2015
10 Weather Index crop insurance Non-life-43/2015 15.02.2015
11 Non-life-43/2015 15.02.2015
12
Group health insurance plan for mobile
subscriber Robi customers
Non-life-46/2015 30.06.2015
13
(i) All Crime insurance for all financial
institution
(ii) Electric and computer related crime
insurance
Non-life-46/2015 30.06.2015
14 Contingent loss of earning due to flood 16.11.2015
15 Extended warranty insurance 13.07.2016
16 Weather index insurance pilot project Non-life-49/2017 17.01.2017
17 Agent Banking insurance policy Non-life-50/2017 03.04.2017
18 Nibedita plus Non-life-56/2018 21.10.2018
19 Nibedita Eco Non-life-56/2018 21.10.2018
20
Radio Frequency identification (RFID)
Tracking insurance
Non-life-62/2019
Non-life-63/2019
07.05.2016
29.05.2019
21
Nirapad, online-based personal motorcar
comprehensive insurance plan
22
Bangabandhu surakha Bima
Non-life-79/2020
19.10.2020
23
Bangabandhu sportsman comprehensive
insurance
Non-life-79/2020
19.10.2020
24 Sports Insurance Non-life-79/2020 19.10.2020
91
Attachment 05
List of Acts, Rules & Regulations relating to Insurance of Bangladesh
Serial Insurance-related acts, Rules and Regulation Date of pulish
as gazatte
Law
1 Insurance Act, 2010 18.03.2010
Insurance act, 2010 (English version) 14.06.2018
2 Insurance development and regulatory authority act 2010 18.03.2010
Insurance development and regulatory authority act 2010
(English version)
01.10.2013
03 Corporation Act 09.05.2019
Rules
1 Insurers Registration fees rules 2012 30.12.2012
Insurers Registration fees rules, amended 11.06.2018
2 Rules relating to the shareholding of foreign investors
(ascertainment of conditions,2013
26.02.2013
3 Rules relating to insurers branch set up and licensing fees, 2012 30.12.2012
4 Rules relating to inspection of documents and delivery of copy,
2014
01.01.2015
5 Rules pertaining to insurers’ capital and shareholding, 2016 25.09.2016
6 Non-life insurers management expenses rules ,2018 30.09.2018
7 Rules relating to dispute resolution of small insuranc policies
2018
30.09.2018
8 Insurance development and Regulatory Authority (Issuing
license to insurance surveyors) Rules, 2018
28.10.2018
9 Non-life insurers management expenses rules, 2018 09.01.2020
10 Life insurers management expenses rules, 2018 03.02.2019
Regulations
1 Insurance development and regulatory authority (Fund
management) Regulation, 2011
20.10.2011
2 Insurance Development and Regulatory Authority(Advisory
Council) Regulation, 2011
20.10.2011
3 Insurers (Approval of CEO and Removal) Regulation, 2012 03.01.2013
4 Setting up insurers Branch and Office (Application to
receivethe license) regulation, 2012
02.01.2013
5 Insurance Development and Regulatory Authority (Dispute
resolution committee) Regulation, 2012
02.01.2013
6 The regulation relating to insurers registration, 2013 10.02.2013
7 Insurer’s responsibility towards rural and social sector
regulation, 2012
02.01.2013
8 Insurance Development and Regulatory Authority (Central
Rating Committee) Regulation, 2012
01.01.2013
92
Serial Insurance-related acts, Rules and Regulation Date of pulish
as gazatte
9 Regulation relating to review (time, form, and fees), 2015 25.08.2015
10 Life insurers’ reinsurance (determination of conditions)
regulation, 2015
16.03.2016
11 Ascertainment of Non-life insurers highest limit of management
expenses (Notification of withdrawal), 2016
18.07.2016
30.09.2018
12 Life insurers policyholders’ protection regulation, 2016 02.04.2017
13 Regulation relating to maintaining register (Policy and Claim),
2017
16.04.2018
14 Regulation relating to non-insurers’ investment of assets and
reserve, 2019
14.11.2019
15 Regulation relating to non-insurers’ investment of assets and
reserve, 2019
19.11.2019
16 Insurance development and regulatory authority Policyholders
protection fund regulation revised regulation,
04.08.2020
17 Insurance Development and Regulatory Authority service
regulation, 2021
04.05.2021
93
Attachment 06
International training attained by IDRA staff from June 2017 to December 2019
No
Duration
Mode of
travel
Subject Participant name and
Position
01
10.02.2018,
11.02.2018,
13-02-2018
Seminar
(India)
4
th
South Asian Insurance
Regulator’s Meet and
International Conference,
India
1. Mr. Borhan Uddin
Ahmed, Member (law)
2. Dr. Md. SK Rezaul Islam,
Executive Director
(Additinal Secretary)
02
25.06.2018
-
29.06.2018
Training
(India)
Regulators Interaction
session, Insurance Institute
of India, Mumbai
1.Barhan Uddin Ahmed,
Member
2. Dr. M. Mosharraf
Hossain. FCA, Member
3. Dr. Md. SK Rezaul Islam,
Executive Director
(Additinal Secretary)
4.Dr. Moh. Bashirul Alam,
Director (Joint Secretary)
5. Md. Faruk Ahmmed,
Director, (Joint Secretary),
6. Md Shah Alam, Director
(Deputy Secretary)
7. Abu Mahmud, Officer
03
02.07.2018
-
06.07.2018
Training
(India)
Regulators Interaction
session, Insurance Institute
of India, Mumbai
1. Gakul Chand Dash,
Member
2. Kazi Monower Hossain,
Executive Director, Joint
Secretary
3. Khalil Ahmed, Executive
Director (Joint Secretary)
4. Kamrul Haque Maruf,
Director (Deputy Secretary)
5. Abul Kashem Mohammad
Fazlul Haque, Director
(Deputy Secretary)
6. Hamed Bin Hasan, Junior
Officer
04
05.09.2018
-
07.09.2018
Meeting
(Russia)
10
th
AFI Global Policy Forum
(GPF) and Annual General
Meeting (AGM) Russia
1. Md. Shafiqur Rahman
Patwari, Chairman
2. Gakul Chand Dash,Member
94
No
Duration
Mode of
travel
Subject Participant name and
Position
05
24.07.2018
-
27.07.2018
Meeting
(Nepal)
21
st
APG Annual Meeting
and Technical Assistance
Forum 2018 (Nepal
1. Dr. M. Mosharraf
Hossain. FCA, Member
06
07.09.2018
Seminar
(China)
4
th
China ASEAN Summit
Forum on Insurance
Cooperation and
Development in Nanning 7
th
September, 2019
1. Dr. M. Mosharraf
Hossain. FCA,Member
2. Dr. Md. SK Rezaul Islam,
Executive Director
(Additinal Secretary)
3. Md. Faruk Ahammed,
Directore (Joint Secretary)
5.Md. Abul Kashem
Mohammed Fazlul Hoque
07
29.10.2018
-
02.11.2018
Meeting
(Morocco)
BAM
-
AFI Member
Training on Innovations in
Digital Financial Inclusion,
Rabat, Morocco
Dr. Md. Bashirul Alam,
Director (Joint Secretary)
08
01.10.2018
-
02.10.2018
Workshop
(U.K)
Chartered Insurance
Institute, U.K. and
LLOYDS, FCA Workshop
and Exposure Visit
1.
Gakul Chandra Dash,
Member
2. Khalil Ahmed, Executive
Director (Joint Secretary)
3. Kamrul Hoq Maruf,
Director (Deputy Secretary)
09
12.07.2018
-
13.07.2018
Award
Program
(Singapore)
Asian Insurance Award,
2018
1.
Gakul Chandra Dash,
Member
2. Khalil Ahmed, Executive
Director(Joint Secretary)
10
06.11.
2018
-
08.11.2018
Meeting
(Zambia)
14
th
International
Microinsurance Conference,
Zambia 2018
Dr. M. Mosharraf Hossain.
FCA, Member
11
08.11.2018
-
09.11.2018
Meeting
(Luxembour
g)
25
th
Annual Conference in
Luxembourg 8-9 November
2018
Md. Shafiqur Rahman
Patwari, Chairman
12
24.10.2018
-
26.10.2018
Meeting
(Thailand)
AITRI Regional Seminar
for Insurance Supervisors in
Asia and the Pacific on
Market Conduct Regulation
and Compliance Thailand
1. Dr. M. Mosharraf
Hossain. FCA, Member
2. Md. Shah Alam, Director
(Deputy Secretary)
13
12.11.2018
-
16.11.2018
Training
(Malaysia)
BNM-AFI Member
Training on AML/CFT
Considerations and
Approaches for Financial
Inclusion
Md. Faruk Ahammed,
Directore (Joint Secretary)
14
26.11.2018
-
27.11.2018
Seminar
(Fiji)
AFI-RBF Conference on
Smart Policies for Green
Financial Inclusion
Dr. Md. SK Rezaul Islam,
Executive Director
(Additinal Secretary)
95
No
Duration
Mode of
travel
Subject Participant name and
Position
15
12.11.2018
-
14.11.2018
Seminar
(Singapore)
Fintech Conference 2018
Sigapore
Borhan Uddin Ahmed,
Member(Law)
16
23.12.2018
-
26.12.2018
Seminar
(Nepal)
JICA Alumni Association
Forum of SAARC
Countries (JAAFSC)
Annual Meeting/Seminar
Md. Abul Kashem
Mohammed Fazlul Hoque
17
07.10.2019
-
11.10.2019
Training
(Malaysia)
BNM-AFI JLP on
Empowering Consumers
Through Financial
Education 07 October
2019
1. Md. Shah Alam, Director
(Deputy Secretory)
2. Md. Abul Kashem
Mohammed Fazlul Hoque,
Director (Deputy Secretary)
18
21.10.2019
-
24.10.2019
Training
(Mexico)
Training on CNBV-AFI
Joint Learning
Programme on Fintech
Regulation and
Proportionality for
Financial Inclusion, on
21-24 October,2019
Dr. M. Mosharraf Hossain.
FCA, Member (Life)
19
25.11.2019
-
28.11.2019
Training
(Egypt)
CBE-AFI Joint Learning
Programme on Digital
Financial Services
Interoperability
Md. Shah Alam, Director
(Deputy Secretory)
96
Attachment 07
Gross Premium collection by the Non-Life insurers (BDT crore)
Name of Insurer 2015 2016 2017 2018 2019
Agrani 36 41 37 38 42
Asia 45 48 51 62 63
Asia Pacific 37 40 47 53 56
Co-operative 10 10 13 14 13
BGIC 66 69 73 63 71
BD National 36 44 48 50 52
Central 31 34 35 35 36
City General 35 42 43 44 45
Continental 57 53 59 62 52
Crystal 37 39 41 43 53
Desh General 12 15 16 20 31
Dhaka 29 26 30 33 37
Eastland 82 86 103 111 104
Eastern 38 39 42 46 48
Express 40 39 40 41 49
Federal 48 43 44 51 61
Global 26 23 23 40 68
Green Delta 302 316 329 368 416
Islami Insurance BD 42 39 43 42 56
Islami Commercial 27 33 41 46 50
Janata 27 34 32 35 33
Karnafuli 28 29 31 33 37
Meghna 42 47 41 46 58
Mercantile 30 30 32 34 38
Nitol 61 61 67 72 73
Northern Islami 35 37 42 46 62
Paramount 14 17 19 26 29
Peoples 54 61 65 70 71
Phoenix 64 65 71 76 78
Pioneer 228 250 266 301 322
Pragati 151 154 166 205 241
Prime 58 54 67 68 71
97
Name of Insurer 2015 2016 2017 2018 2019
Pravati 41 44 48 49 77
Purovi General 5 6 7 8 9
Reliance 227 249 257 269 300
Republic 44 46 48 53 68
Rupali 82 85 86 88 87
SBC 207 223 239 352 371
Sena Kalyan 17 20 26 36 58
Sikder 29 22 26 32 29
Sonar Bangla 35 38 41 45 57
South Asia 5 6 7 10 20
Standard 21 4 21 47 50
Takaful 33 38 40 43 49
Union 31 31 32 40 45
United 38 42 45 47 51
Total 2643 2773 2981 3394 3790
98
Attachment 08
Asset Position of Non-Life insurers (2015-2019) (BDT crore)
Name of the insurers 2015 2016 2017
2018
2019
Agrani 63 69 73 81 82
Asia 154 165 155 162 177
Asia Pacific 115 122 135 137 106
Co-operative 18 20 21 26 25
BGIC 160 165 172 167 166
BD National 83 112 124 133 139
Central 163 161 170 181 186
City General 113 123 124 131 134
Continental 99 102 108 112 110
Crystal 66 75 88 94 106
Desh General 27 32 53 57 69
Dhaka 154 159 192 199 227
Eastland 217 235 248 230 260
Estern 205 209 216 242 245
Express 103 109 109 111 119
Federal 110 113 132 135 139
Global 67 73 72 81 98
Green Delta 820 1000 1050 1083 1169
Islami Insurance 79 88 96 103 112
Islami Commercial 71 80 88 96 95
Janata 81 82 89 96 101
Karnafuli 122 123 131 126 132
Meghna 56 67 68 70 80
Mercantile 130 135 138 177 216
Nitol 109 124 143 159 176
Northern Islami 125 113 128 97 109
Paramount 48 54 61 72 106
Peoples 179 189 205 221 236
Phoenix 111 194 236 60 55
Pioneer 272 316 408 450 470
Pragati 396 420 431 440 467
Prime 114 111 122 130 137
99
Name of the insurers 2015 2016 2017
2018
2019
Provati 78 95 102 94 107
Purabi General 80 88 97 102 107
Reliance 630 660 823 880 900
Republic 82 92 101 105 119
Rupali 215 221 228 235 243
SBC 2383 2815 3506 3446 3702
Senakallyan 36 42 46 49 71
Sikder 90 102 104 139 141
Sonar Bangla 73 81 92 104 115
South Asia 26 25 27 27 28
Standard 90 89 98 112 125
Takaful 80 89 95 100 106
Union 47 63 69 76 88
United 126 137 150 165 177
Total 8663 9737 11124 11293 12075
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