Bangladesh insurers urged to partner with banksApril 26 2017 by InsuranceAsia News Staff
Insurers in Bangladesh should create tie-ups with banks to reach out to villages and rural towns and expand insurance coverage for the people, according to Chris Townsend, Metlife Asia’s president.
Despite its growing economy and the presence of 77 nonlife and life players, the country is still among the least-exploited insurance markets in the world.
The insurance sector’s contribution to Bangladesh’s gross domestic product stands at a meagre 0.5%. In neighbouring countries India and Nepal, the rate is around 3.5%.
In 2015, overall insurance penetration in the South Asian country was at 0.72%, down from 1.13% registered five years back, according to Swiss Re.
This is why Townsend says insurers’ partnership with banks is crucial as it could provide new opportunities for growth in the financial sector.
Bangladesh is presently home to 55 private and public banking institutions.
- June 22
The agreement with Sathapana Bank was signed at a ceremony attended by the finance ministry and central bank.
- June 15
The two institutions have forged a bancassurance partnership, initially covering parts of Europe and Australia.
- June 7
The Indian insurer is planning to partner with a host of banks as it shifts from its traditional stance.
- May 3
Regulators have given the green light for the proposed bancassurance tie-up with Robinsons Bank.