Kathmandu: The Life insurance fund of life insurers listed in the securities market of Bangladesh has been declining for the last five years. Due to high operating costs, embezzlement of life fund and other factors, life fund, which is considered the backbone of life insurers, is declining.
The Bangladeshi media The Daily Star has published the comparative statistics of the insurance fund of 11 of the 33 listed life insurers in Bangladesh, stating that the life insurance fund has remained the same since 2015. Despite fierce competition among life insurers, it has not contributed to increasing public access to life insurance.
According to The Daily Star, only 0.4 percent of the total population in Bangladesh has access to insurance. This is the lowest in Asia Pacific region.
Among the life insurance companies, Popular Life Insurance Company Limited has been in operation for two decades. The company’s insurance fund has now shrunk by 38 percent. Similarly, the insurance premium of Fairest Islamic Life Insurance Company has declined by 21 percent. While the life fund of Padma Islami Life Insurance has witnessed a sharp decline of 98 percent.
Number of death claims and maturity claim had been by about 8-10 life insurance companies which has eroded public confidence in life insurance.