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Materialising the concept of ‘Insurance for Everyone’

The insurance penetration in Bangladesh is less than 1%, which shows the current scenario of the market February 15, 2016: The insurance industry in Bangladesh is considered to be an untapped sector. It has one of the lowest insurance penetrations in the world (around 1%). While some choose to be pessimistic about it, insurance experts tend to view this as an area full of possibilities...

The insurance penetration in Bangladesh is less than 1%, which shows the current scenario of the market

February 15, 2016: The insurance industry in Bangladesh is considered to be an untapped sector. It has one of the lowest insurance penetrations in the world (around 1%). While some choose to be pessimistic about it, insurance experts tend to view this as an area full of possibilities and opportunities. Lack of awareness regarding insurance is very much visible, which makes it hard to achieve our desired growth in the industry.

Currently, we are seeing a consistent 13%-15% growth every year in the insurance industry. If this reaches 20%, this will be a remarkable achievement for the industry. Being the market leader and the only AAA rated insurance company in Bangladesh; Green Delta Insurance believes that when the industry grows, they grow as well.

The market penetration of insurance is currently less than 1%. With our flagship project ‘Insurance For Everyone’ and the government’s recent praiseworthy initiatives related to safety net insurance to give coverage to the bottom of the pyramid group, we are hopeful regarding the possibilities of a 5% market penetration within 5-10 years’ timeframe.

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Farzana Chowdhury, MD & CEO of Green Delta

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

Green Delta Insurance is the first non-life insurance company from Bangladesh to introduce the retail insurance department. The department was created with the motto ‘Insurance for Everyone’. Ms. Farzana Chowdhury, MD & CEO of Green Delta, was the person who gave birth to the concept. After the formation of the retail department, 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 side of having an insurance policy.

The insurance penetration in Bangladesh is less than 1%, which shows the current scenario of the market. There’s always a negative aura regarding insurance among the general people of our country. We see people try to avoid buying a policy unless it’s mandatory by law. So, naturally the job for the Retail Insurance department is very challenging. But Green Delta is coming up with innovative branding strategies to create a positive buzz in the market. A wind of change can be felt already. The market is growing slowly but consistently. Green Delta is not only promoting its own products but also promoting the overall sector.

The main products that the retail insurance department sells are Motor Insurance, Overseas Mediclaim Insurance, Personal accident insurance, People’s personal accident policy, Health Insurance, All risk insurance 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 insurance penetration in Bangladesh is less than 1%, which shows the current scenario of the market. There’s always a negative aura regarding insurance among the general people of our country. We see people try to avoid buying a policy unless it’s mandatory by law. So, naturally the job for the Retail Insurance department is very challenging. But Green Delta is coming up with innovative branding strategies to create a positive buzz in the market. A wind of change can be felt already. The market is growing slowly but consistently. Green Delta is not only promoting its own products but also promoting the overall sector.

As the market leader, Green Delta wants to grow with every other insurance company because that’s the only way to materialise the concept of insurance for everyone. It will be difficult for a single company to change the scenario regarding insurance penetration so the support of the other insurers is expected.

Green Delta is confident about the success of this department. The number of people who started believing in insurance products is increasing every day, which promises a better day for the industry. Green Delta is leaving no stone unturned to educate the general people regarding the necessity of insurance. Positive results can be noticed through public behaviour on social media.

A country’s strong economy is very much interrelated with its insurance market. Bangladesh’s economy will grow rapidly once people start realising the importance of insurance in everyday life. Retail & SME Insurance in Bangladesh is committed to bring about a positive change in the insurance market.

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