Insurance business turnover exceeds Tk 6,000 crore

The country’s insurance companies performed well last year beating back the anticipated impact of global economic recession as business returned to normalcy under the new democratic government, reports BSS.
Insurance business turnover surpassed Taka 6,000 crore last year with life insurance alone having a record of Taka 5,000 crore deals. Its growth rate stood at 20 to 25 percent, a functionary of Bangladesh Insurance Association (BIA) told BSS. Business turnover of general insurance covered the remaining volume of business and its growth rate is estimated at 15 to 20 percent, the BIA functionary said.
Insurance business in 2008 stood at Taka 4,713 crore, while business of life insurance at Taka 3,597 crore, the sources said.
Top insurance functionaries said global economic meltdown has little impact on the country’s insurance business. Almost all companies netted good business in the year ending in December last.
The business growth figure has been estimated on the basis of premium income report presented by 22 life insurance and general insurance companies to BIA for the period up to September last year.
The country has 60 insurance companies of which the number of general insurance companies is 43. The remaining 17 firms are life insurance companies. General insurance deals with risk coverage in business while life insurance companies deal with health and death risks of clients.
The business sources said premium income of general insurance rises with the growth of business, especially with imports, so also business turnover of life insurance rises with the rise in income of common people and especially from a steady rise of remittance.
Chairman of BIA Rafiqul Islam told the agency that the main reason for the rise in general insurance business relates to a steady rise in volume and value of imports. From a steady rise in remittance, life insurance also significantly increased with small insurers taking interest in it. He said Parliament is expected to pass the ‘Insurance Act Amendment Bill’ in its present session and BIA is looking forward that the amended law will make significant contributions to bring growth and discipline in the business. Managing Director of Bangladesh General Insurance Company A K Azizul Haque Chowdhury told the agency that the country’s insurance business remained protected as the global economic recession has left hardly any impact on it.
Moreover, as the loan disbursement to industrial sector increased last year insurance companies premium income has also increased along with it.