Page 18 - Digital Edition SIRC Supplement

MARKET REPORT - BANGLADESH

Materialising the concept
“Insurance for Everyone”

Mr Nasir A Choudhury, Advisor and Founding Managing Director, Green Delta
Insurance, shares that the low penetration rate in Bangladesh means that it is
full of possibilities, and that to raise the penetration rate and grow the insurance
industry, insurance companies can do more by working together.

The insurance industry in Bangladesh is considered wind of change can be felt already. The market is growing
to be an untapped sector. It has one of the lowest slowly but consistently.
insurance penetrations in the world at around 1%. Growing the overall sector
While some may choose to be pessimistic about it, insurance Green Delta is not only promoting its own products but
experts tend to view this as an area full of possibilities and also promoting the overall sector. We want to grow with
opportunities. Lack of awareness regarding insurance is very every insurer because this is the only way to materialise the
much visible, which makes it hard to achieve our desired concept of “Insurance for Everyone”. It will be difficult for a
growth in the industry. single company to change the scenario regarding insurance
penetration, so the support of the other insurers is necessary.
Currently we are seeing a consistent 13%-15% growth every
year in the insurance industry. If this reaches 20%, this will be The number of people who are starting to believe in
a remarkable achievement for the industry. insurance products is increasing every day, which promises
Raising penetration and market share a better day for the industry. Green Delta is leaving no stone
Being the market leader and the only AAA-rated insurance unturned to educate the general public regarding the necessity
company in Bangladesh, Green Delta Insurance believes that of insurance. Positive results can be noticed through public
when the industry grows the company grows as well. behaviour on social media.

The market penetration of insurance is currently less than A country’s strong economy is very much interrelated with
1%. With our flagship project “Insurance for Everyone” and its insurance market. Bangladesh’s economy will grow rapidly
government’s recent praiseworthy initiatives related to safety once people start realising the importance of insurance in
net insurance to give coverage to the bottom of the pyramid everyday life. Retail & SME department is committed to bring
group, we are hopeful regarding the possibility of a 5% market about a positive change in the insurance market.
penetration within a 5-10 years’ timeframe.

We hold 13-14% of the market share of the insurance
industry being the leader of the non-life sector at the moment.
In the decade ahead, if our projections work out we will
be more aggressive in the market and aim to capture
22-25% of the market share.

Green Delta Insurance was the first non-life
insurer from Bangladesh to introduce the retail
insurance department. The department was
created with the motto “Insurance for Everyone”.
Ms Farzana Chowdhury was the person who
gave birth to the concept. The people in the
department are working hard to take it forward.
The direct sales team is going door to door
to build awareness regarding insurance and
convince people about the brighter sides of having
an insurance policy.

The main products that the retail insurance
department sells are motor, overseas Mediclaim,
personal accident, health, all risk, and Nibedita –
comprehensive insurance scheme for women. There
are few other projects under Retail and SME, they are
Niramoy-micro insurance for rural people, Shudin- micro
insurance for garments workers, weather index-based crop
insurance and Probashi – comprehensive insurance scheme
for migrant workers.

The low insurance penetration in Bangladesh reflects
the current scenario of the market. There is a negative aura
regarding insurance among the general people of our country.
People try to avoid buying a policy unless it is mandated by the
law. So naturally the job for the Retail Insurance department
is very challenging. Green Delta is coming up with innovative
branding strategies to create a positive buzz in the market. A

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