One more life insurance co to enter market

Another life insurance company has obtained the regulatory nod to conduct its business in the country, raising the total number of life insurers in the private sector to 32.

People having knowledge of it at the Insurance Development and Regulatory Authority (IDRA) said the IDRA had approved it more than a week back.

"We issued an operating licence in favour of the Ashta Life more than a week back," Gokul Chand Das, a member at the IDRA, told the FE.

He said the company would be able to do all types of insurance business applicable to a life insurance company.

However, it is yet to announce any time framework on launch of its business.

People at the IDRA said it might organise a gala inauguration ceremony shortly.

The paid-up capital of the insurance company is Tk 300 million (30 crore). Sponsors' portion of the amount is Tk 180 million. The remaining Tk 120 million will be raised from the public through offloading shares.

Dr. Chowdhury Md Wasiuddin, FCA, has been proposed to take over as managing director of the company, according to the IDRA.

When contacted, Mr Wasiuddin told the FE that he also had been informed of issuance of the company's operating licence.

It may be headquartered at the SKS Tower of Mohakhali in the city. It may launch its operations by offering five attractive life products.

The country has now 79 life and non-life insurance companies. Of them, 33 are life insurers, including the state-owned Jiban Bima Corporation. The remaining 46 insurers are in the non-life sector.

The insurance penetration in the country has remained one of the worst in the world with a market size of more than Tk 80 billion. The US-based MetLife is the market leader.

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