Prudential, Taiyo pull out from Bangladesh entry

July 25 2016 by InsuranceAsia News Staff

Prudential and Taiyo have not contacted the Bangladeshi insurance regulator for some months, leading it to believe that they are now withdrawing from their plan to invest more into the saturated, but underdeveloped domestic market.

Shefaque Ahmed, chairman of Bangladesh’s Insurance Development and Regulatory Authority, revealed that neither UK-based Prudential nor Japan-based Taiyo has had any communication with it in recent months.

According to Ahmed, Taiyo may have withdrawn its plan because it was not allowed by the regulator to revise its current stakes in its local venture Taiyo Summit Life.

In the case of Prudential, Ahmed said it has not contacted him for the past four months amid concerns about terrorist activities.

At present, the Bangladesh insurance market is oversaturated with 74 companies, 42 of which are non-life and 32 are life companies.

Still, the market is considered as having potential as it is very underdeveloped and poorly regulated.

In 2010, an insurance law was passed to facilitate the entry of foreign insurers so that it could draw on their knowledge and technical know-how.

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