Unaffordable premiums drive low take-up in BangladeshAugust 26 2015 by InsuranceAsia News Staff
A study conducted by the Institute of Microfinance in Bangladesh showed that while insurance awareness among Bangladeshi people has increased last year, only a few have taken out coverage.
The study showed that 53% of Bangladeshis are aware of the different insurance products available for them but only 12.61% had signed up for coverage.
The study also showed that access to insurance in Bangladesh in 2014 did not increase significantly partly due to the inability of many households to pay insurance premiums.
The awareness and coverage ratios were almost the same in both rural and urban areas. According to the study, 50% of those living in rural areas were aware of insurance services but only 12% had taken out coverage.
In urban areas, only 14.54% had insurance coverage though insurance awareness was at 63.53%.
Bangladesh currently has 77 insurance companies.
- March 1
The country's insurance regulator has vowed to intensify a campaign to crack down on the practice.
- April 26
Reaching out to villages and rural towns is key to expanding insurance coverage for the country's people.
- July 25
The two insurers are reportedly withdrawing their plans to expand in the saturated but underdeveloped market.
- February 17
The Insurance Development and Regulatory Authority arrived at the figure using its new solvency margin rules.