Restoring people’s confidence vital for boosting insurance sector

Special Correspondent: President of the Bangladesh Insurance Forum (BIF), BM Yusuf Ali, has emphasized the need to address the crisis of confidence among the people towards the insurance sector to facilitate its development in the country. “The insurance sector holds significant potential in our country. However, there remains a crisis of confidence among the people in this sector, which must be addressed for its overall development,” he stated during an interview with the Daily Industry
He pointed out that despite the substantial size of Bangladesh’s economy, the insurance sector has yet to achieve its desired goals, with its contribution to the country’s economic growth falling below expectations, especially when compared to other countries in South East Asia.
Yusuf Ali, who also serves as the Chief Executive Officer of Popular Life Insurance Company Limited, highlighted that currently, 81 insurance companies are operating in Bangladesh, comprising 35 life insurance companies and 46 general insurance companies. “Currently, the contribution of domestic insurance companies to GDP is less than one percent, indicating ample room for increasing insurance penetration in the overall economy,” he observed.
He further noted that the observance of National Insurance Day plays a crucial role in enhancing public confidence and promoting the development of the insurance sector through extensive campaigning at the district, upazila, and village levels across the country.
Citing World Bank statistics, Yusuf Ali expressed concern that only four out of every 1,000 people in Bangladesh have a life insurance policy, underscoring the need for government initiatives to achieve 100 percent insurance coverage for life and wealth in the country.
He emphasized the importance of continuous campaigns throughout the year to raise public awareness about the insurance sector, along with measures such as including insurance subjects in college and university curricula, policy-making for the poor, promotion of social insurance, development of new products, and micro insurance.
Yusuf Ali reiterated the significant role of the Bangladesh Insurance Forum in advancing and regulating the insurance industry, working in accordance with the guidelines of the Insurance Development and Regulatory Authority (IRDA).
Highlighting the historical significance of March 1st as National Insurance Day, Yusuf Ali emphasized the visionary approach of Bangabandhu Sheikh Mujibur Rahman towards the insurance sector and urged collective efforts to realize his dream of developing the sector and transforming Bangladesh into a developed nation by 2041.
He praised Bangabandhu’s commitment to strengthening financial security at the grassroots level and his contributions to elevating the prestige of the insurance profession in society.