Insurance Industry In Bangladesh

Nitol Reliance & Islamic insurance company

insurance & Risk Mustangs

management

Outline – Insurance and the history. – Insurance background in Bangladesh – Current scenario of insurance industry in Bangladesh – Nitol insurance

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• Company study • Types of services • Fund management

– Reliance insurance company • Company study • Types of services • Fund management • CSR • Future way out – Islamic insurance company • Company study • Types of services • Fund

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– Comparison between three insurance company – How insurance companies can be flourished – Recent recession and world insurance business. – World ranking

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ü Health and life insurance, Introduced by Greeks and Romans, in 600 AD ü Nicholas Barbon In 1680, established England's first fire insurance company, "The Fire Office,“. ü Insurance company walked into US was in 1732, formed in Charles Town (modern-day

Insurance background in Bangladesh ü Triton insurance ,Calcutta pioneer in general insurance ,established in 1850 ü Oriental life assurance company, the first life insurance company, established in 1818 ü Were generally limited to the British people working in India ü Insurance business exclusively operated by private sector In Pakistani period ü On 14th May, 1973 the Insurance Corporation Act VI, 1973 was enacted and five corporations were abolished into the following two corporations 1) Sadharan Bima Corporation for General Insurance

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Current scenario of insurance industry in Bangladesh ü 62 insurance companies. • 2 state-owned corporations • 43 general & insurance companies • 17 life insurance companies

ü SBC was acting as the sole insurer of general Insurance till 1984 ü Bangladesh Government allowed the private sector to conduct business in all areas of insurance for the first time in 1984 ü At present, nearly all the companies place

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Nitol insurance

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ü Company study – Sponsored & founded in 1996 by a group of entrepreneurs of Bangladesh – Emerged from Nitol Niloy group. – Has been assigned “AA3” rated General Insurance Company ü Types of services – Fire – Marine – Motor – Engineering – Miscellaneous Insurance – Aviation Insurance

Nitol insurance Fund management – Authorized Capital is Tk.200 Million – Tk.150 Million ( Sponsor- 60 Million & Public 90 Million) is Issued – Total investment Tk.471.05 million

CSR – No CSR activities

Future way out – Spread allover Bangladesh in response to the claim as early as possible.

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Reliance insurance Company study – Was incorporated on 20th March 1988 – was subsequently listed in the stock Exchanges of Bangladesh in 1995

üTypes of services – – – – – –

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Fire Insurances Marine Cargo Insurances Marine Hull Insurance(TLO & ITC) Engineering Insurances Motor Insurances Miscellaneous

Reliance insurance • Fund management – Paid –up Capital 150.00 – Total Reserves 505.40 – Total Assets 1065.80 • CSR – participated while the nation was in natural disaster • Future way out

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– Reaching all over Bangladesh. – Is trying to invest heavily in human resource – Focusing to attain re-insurance to be competitive in this

Islamic insurance company Company study – Incorporated on may 09,1998

– Market category “a” – Initiative was taken from Khulna region

• Types of services – – – – – –

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Fire Marine Motor Engineering Miscellaneous Insurance Cyclone insurance

Islamic insurance • Fund managementcompany – Authorized capital 30.00 crore – Paid up capital 13.00 crore – Total investment Tk.70 crore

• CSR – No specific CSR activities

• Future way out – Spread allover Bangladesh – Diversification in investment

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How insurance companies can flourish

ü Declaring insurance as a thrust sector ü Initiating micro insurance ü Establishing a regulatory body with adequate knowledge in insurance business ü Rule out the compulsory provision of re insurance with Shadharan Bima Corporation ü Both innovation and creativity can be

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Recent recession and world insurance business. ü All the companies are affected ü Dropped its auto insurance rates in Georgia by an average of 1.5% ü The current premiums are 12% lower than five years ago Mustangs

World ranking

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Thank You

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