The premium earning of life insurance companies decreased by Tk 43.13 crore in 2013 compared with the previous year. The life insurance companies in 2103 registered premium earning of Tk 6,539.87 crore compared with Tk 6,583 crore in 2012. Experts in the insurance sectors said that the premium earning of the existing life insurance companies declined last year due to the political unrest and pre-polls political violence.
Increased competition that arose with the newly-approved insurance companies was among other reasons behind the declined profit of the insurance companies.
The government last year allowed 11 new insurance companies including nine life insurance companies to conduct business in over-crowded insurance sector. Most of the companies are yet to start their business.
Thirty-one life insurance companies are now conducting business in the country.
‘We all know about the political situation of the country of the previous year which affected all the business sectors. That might be responsible for the decline in premium earning of the life insurance sector as well,’ Insurance Development and Regulatory Authority member Md Quddus Khan told New Age recently.
Out of the 18 existing life insurance companies, premium earning of five companies fell sharply while 13 managed to increase their premium earning last year, IDRA data showed.
Jiban Bima Corporation, Popular Life Insurance, Golden Life Insurance, Sunflower Life Insurance and Progressive Life Insurance Company witnessed decline in premium earning.
Jiban Bima Corporation’s premium earning was Tk 342 crore in 2012 which declined to Tk 302.13 crore last year.
Golden Life Insurance earned Tk 55.68 crore in 2013 which was Tk 117 crore in the preceding year.
Earning of Popular Life Insurance declined to Tk 640.56 crore in 2013 which was Tk 661 crore in the previous year.
Sunflower Life Insurance and Progressive Life Insurance Companies earning declined to Tk 29.57 crore and 140.98 crore respectively last year compared with Tk 94 crore and Tk 162 crore in the previous year.
Premium earning of 13 other companies — American Life Insurance Company, National Life Insurance Company, Delta Life Insurance Company, Baira Life Insurance Company, Homeland Life Insurance Company, Padma Islami Life Insurance Company, Padma Islami Life Insurance Company, Farest Islami Life Insurance Company, Pragati Life Insurance Company, Sunlife Insurance Company, Sandhani Life Insurance Company, Rupali Life Insurance Company, Meghna Life Insurance Company and Prime Islami Life Insurance Company — improved during the period.
Of the other 13 life insurance companies which got approval from the regulator earlier, two companies — Best Life Insurance and Protective Islami Life Insurance — ran their operations in 2013. They managed to earn Tk 3.50 crore and Tk 2.26 crore in premium respectively in 2013.
-With New Age input
