Imagine this: out of every 10 people in Bangladesh, only one is financially protected against floods, fires, health emergencies, or industrial accidents. The other nine face the full brunt of disaster, often losing everything they have worked for.
Despite being the backbone of economic stability, insurance reaches only 1.9 crore people out of over 17 crore Bangladeshis, leaving more than 90 per cent of the population unprotected. This gap is not just a personal risk, it extends across the economy. Banks struggle with unsecured loans, small businesses face operational collapse after disasters, farmers lose crops without coverage, and investors hesitate to fund industrial and infrastructure projects. Trade, exports, and supply chains remain vulnerable. In short, the majority of the nation's economic sectors are indirectly exposed, making the protection gap not only a social issue but a macro-economic vulnerability.
Countries with 7-10 per cent insurance penetration survive economic and natural shocks more effectively. Bangladesh, at only 0.5 per cent coverage, remains dangerously exposed. How long can we afford to ignore our nation's risk shield?
Insurance is not a luxury; it is the silent shield that stabilizes lives, businesses, and the nation's economy. It prevents families from falling into poverty after a flood, protects farmers' livelihoods after crop failure, and keeps small businesses running after a fire. Yet, despite its critical role, insurance penetration in Bangladesh remains below 1 per cent of GDP, far below global averages.
The solution is clear: expand insurance coverage, foster innovation, and integrate risk protection into national development planning. Microinsurance for low-income families, crop and climate-risk insurance for farmers, and inclusive insurance models for informal workers are not optional, they are essential for national resilience. Smart regulation can enable growth without compromising stability. A collaborative approach between regulators, insurers, and government programs can transform insurance into a true economic backbone.
The question is simple: have we failed to build the nation's risk shield -or are we simply ignoring it?
Nasrin Ferdous
Insurance Professional
Non-Life (General) Insurance Sector
ferdousnasrin4@gmail.com
