News Details

Insurers' premium revenue records 7pc growth in 2011


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Jasim Uddin Haroon
The premium earnings of the country's both life and non-life insurers stood at Tk 84.36 billion in the 2011, 7.0 per cent more than that of the previous year (2010).

The premium earnings of the country's all 62 insurers were Tk 79.12 billion in 2010.

Insurance regulator said earnings of one of the key financial sectors recorded growth mainly due to reforms undertaken by the regulatory body since January in 2011.

The gross earnings of non-life insurers stood at Tk 21.45 billion in 2011 while that of life insurers at Tk 65.10 billion.

The premium earnings of non-life stood Tk 20.65 billion in 2010 while that of life insurance companies at 58.47 billion in 2010.

But the premium earning growth at the state-owned insurers --- Jiban Bima Corporation and Sadharan Bima Corporation - was much lower than that of the privately-owned companies.

The regulatory body said the volume of life fund belonging to life insurance companies stood at Tk 178.65 billion against Tk 116.38 billion in 2009.

Chairman of Insurance Development and Regulatory Authority (IDRA) M Shefaque Ahmed told the FE: "The insurance sector has been growing satisfactorily in recent years as the companies are exploring new business opportunities."

Mr Shefaque said there are many untapped business areas for the insurers.

Mr Shefaque also said the assets belonging to both life and non-life insurers stood at Tk 198.00 billion in 2011 against Tk 129.58 billion in 2009.

Top executives of non-life insurance companies said their earnings have grown sharply in recent period as the regulatory body had stopped credit business.

Earlier, general life insurance companies used to involve in credit business but the IDRA stopped the same in 2011.

It also abolished discounts to big clients from August in 2011.

The regulatory body had fixed commission in the non-life insurance sector at 15 per cent. There were no fixed commission earlier and insurers used to offer 40-50 per cent commission.

Sheikh Kabir Hossain, chairman of Bangladesh Insurance Association (BIA), a group of privately-owned 60 life and non-life insurance companies recently said they want to explore more business opportunities in the country.

Mr Kabir said: "We want to engage in new areas along with traditional ones, we're trying to launch new products found in many developed and developing nations."

Currently, Bangladesh has a total of 62 life insurance companies, of them 44 non-life companies including state-owned Sadharan Bima Corporation.

[ Last Page ] 2012-06-26