FE Report (September 21, 2010)
Overall premium income of the country's insurance companies grew by nearly 20 per cent, thanks to an impressive growth sustained by the private life insurers.
Provisional figures showed that the gross premium of both general and life insurance companies, according to the preliminary figures, has been estimated at about Tk 62.15 billion in 2009 against Tk 51.63 billion in 2008.
Of the total, premium income of country's private life insurers was estimated to be Tk 44.69 in 2009 while the amount was Tk 35.97 in 2008, the figures showed, reflecting a 25 per cent increase.
On the other hand premium earning from general insurance companies was Tk13.80 billion in 2009 compared with Tk12.58 in the previus year.
The country's insurance sector posted a 22 per cent growth in the premium income in 2008 over the previous year, sources said.
The sector insiders, however, attributed the sustained growth in the premium income by life insures to an extensive marketing drive by the private insurers.
The overall premium incomes of the private insurance companies have been on a significant rise over the last few years, they mentioned.
"Intensification of marketing drives and introduction of new products (policies) and expansion of their business in rural areas have helped the life insurers attain such a positive business growth," the Bangladesh Insurance Association (BIA) Chairman A K M Rafiqul Islam told the FE.
Previously, insurance companies, especially the life insurers, used to do their business mostly in divisional and major cities, but now they have expanded their activities in rural areas, the BIA chief said.
Mr Rafiqul Islam also, however, expressed the hope that the private life insurers would be able to sustain their prevailing premium growth in future.
He further said the life insurance companies have vast scope to expand their business as majority of the vast majority of the country's population still remains outside insurance coverage.
Citing a comparison, the BIA chairman said less than five per cent of people is covered by life insurance policies in Bangladesh compared to that of 30 per cent in India.
Admitting a lower than the expected growth trend in the premium income of general (non-life) insurance companies, he said it was mainly because of the country's less than expected level of industrial growth.
According to statistics, growth of the country's industrial sector slowed down to 5.92 per cent in the fiscal year (FY) 2009-10 and 6.68 per cent in FY 2008-09 from 7.21 in FY 2007-08.
"The premium growth of general insurance companies depends on trade, business and industrial activities," the BIA leader said.
The BIA chairman, however, observed that the rising inflation of commodities in the global market could help raise the general insurance companies' premium income in 2010.
According to the industry insiders, the private life insurers now share around 90 per cent of the total premium business while the state-run Jibon Bima Corporation (JBC) shares the remaining 10 per cent.
Provisional figures showed that the gross premium of both general and life insurance companies, according to the preliminary figures, has been estimated at about Tk 62.15 billion in 2009 against Tk 51.63 billion in 2008.
Of the total, premium income of country's private life insurers was estimated to be Tk 44.69 in 2009 while the amount was Tk 35.97 in 2008, the figures showed, reflecting a 25 per cent increase.
On the other hand premium earning from general insurance companies was Tk13.80 billion in 2009 compared with Tk12.58 in the previus year.
The country's insurance sector posted a 22 per cent growth in the premium income in 2008 over the previous year, sources said.
The sector insiders, however, attributed the sustained growth in the premium income by life insures to an extensive marketing drive by the private insurers.
The overall premium incomes of the private insurance companies have been on a significant rise over the last few years, they mentioned.
"Intensification of marketing drives and introduction of new products (policies) and expansion of their business in rural areas have helped the life insurers attain such a positive business growth," the Bangladesh Insurance Association (BIA) Chairman A K M Rafiqul Islam told the FE.
Previously, insurance companies, especially the life insurers, used to do their business mostly in divisional and major cities, but now they have expanded their activities in rural areas, the BIA chief said.
Mr Rafiqul Islam also, however, expressed the hope that the private life insurers would be able to sustain their prevailing premium growth in future.
He further said the life insurance companies have vast scope to expand their business as majority of the vast majority of the country's population still remains outside insurance coverage.
Citing a comparison, the BIA chairman said less than five per cent of people is covered by life insurance policies in Bangladesh compared to that of 30 per cent in India.
Admitting a lower than the expected growth trend in the premium income of general (non-life) insurance companies, he said it was mainly because of the country's less than expected level of industrial growth.
According to statistics, growth of the country's industrial sector slowed down to 5.92 per cent in the fiscal year (FY) 2009-10 and 6.68 per cent in FY 2008-09 from 7.21 in FY 2007-08.
"The premium growth of general insurance companies depends on trade, business and industrial activities," the BIA leader said.
The BIA chairman, however, observed that the rising inflation of commodities in the global market could help raise the general insurance companies' premium income in 2010.
According to the industry insiders, the private life insurers now share around 90 per cent of the total premium business while the state-run Jibon Bima Corporation (JBC) shares the remaining 10 per cent.
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