Bangladesh insurance market: 15% CAGR between 2008-2012

Press Release   •   Feb 28, 2013 14:25 GMT

The Bangladesh insurance market is highly competitive. The key factors affecting the performance of the Bangladeshi insurance industry during the review period included fierce competition in the non-life segment, the rising market share of private insurance companies and the increasing amount of risk being retained by insurers. The Bangladeshi insurance industry increased at a CAGR of 14.9% during the review period (2008–2012), supported primarily by the life insurance segment.

The Bangladeshi life insurance segment recorded a significant CAGR of 14.5% during the review period. This increase was primarily due to the country's large population, robust economic growth, an increase in promotional efforts by private insurance companies, rising disposable income levels and increased awareness of the need for insurance. These factors are expected to support the segment over the forecast period (2012–2017), which is projected to grow at a CAGR of 15.8%.

Bangladesh recorded impressive annual growth in terms of disposable income, in line with economic growth. However, the country has low per capita income and about half the population lives below the poverty line. Moreover, high levels of illiteracy and the religious attitude of Bangladeshis (Islam does not permit conventional insurance) are major challenges that have been preventing the life insurance segment from achieving its full potential.

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