Insurers post impressive premium despite odds
Tuesday, 12 January 2010
S M Jahangir
The country's insurance industry, despite having an economic slowdown caused by the global recession and drive against graft by the immediate-past caretaker government, posted a hefty 22 per cent growth in premium income in 2008 compared to the previous year, sources said on Monday.
The gross premium of 62 general and life insurance companies rose to nearly Tk 51.63 billion in the 2008 calendar year compared to about Tk 42.16 billion in 2007, provisional figures of the Bangladesh Insurance Association (BIA) showed.
Of the total, 17 life insurers under the private sector generated over Tk 35.97 billion worth of premium income in 2008, reflecting a 23 per cent rise over the previous year.
In the year 2007, the premium income of the private life insurers was Tk 29.16 billion, the figures revealed.
The government-run Jibon Bima Corporation (JBC) also earned Tk 3.07 billion as gross premium in 2008 compared to its previous year's amount of Tk 2.65 billion in 2007.
On the other hand, premium incomes of all the 43 general insurers also grew by around 17.40 per cent to Tk 9.45 billion in 2007, the figures revealed.
The premium earned by the private general insurers also increased to Tk 11.16 billion and that of state-run Shadaran Bima Corporation to Tk 1.41 billion against the previous year's figures of Tk 9.42 billion and Tk 1.26 billion respectively.
The sector insiders, however, attributed such a healthy premium growth to an increased contribution of the private insurers.
According to them, the overall premium incomes of the private insurance companies have been on a significant rise over the last few years.
The total premium income of the country's life insurers was only Tk 8.18 billion in 2001, they mentioned.
"Intensification of marketing drives and introduction of new products (policies) and expansion of their business in rural areas have helped the life insurers attain such a positive business growth in 2008," said an insurance operator.
The industry insiders, however, said the private life insurers now share around 90 per cent of the total premium business while the state-run JBC and SBC shares the remaining 10 per cent.
They also indicated that the country's sector would sustain a healthy premium growth in the 2009 calendar year also.
The BIA figures also showed that the total assets of private life insurers reached Tk 93. 05 billion and that of JBC Tk 18.45 billion as on December 2008 against Tk 71.65 billion and nearly Tk 16 billion respectively.
And the total assets of private general insurers rose to Tk 22.75 billion from Tk 19.83 billion and that of the SBC to Tk 9.62 billion from nearly Tk 7.77 billion.
Apart from that, the total investments made by the private general insurance companies were Tk 11.13 billion and Tk 4.33 billion by the SBC in 2008, while the amounts were Tk 8.57 billion and Tk 4.14 billion respectively in 2007.
The private life insurers also invested Tk 67.15 billion and the JBC Tk 7.79 billion in 2008 compared to nearly Tk 44 billion and Tk 8.38 billion respectively in 2007.
The country's insurance industry, despite having an economic slowdown caused by the global recession and drive against graft by the immediate-past caretaker government, posted a hefty 22 per cent growth in premium income in 2008 compared to the previous year, sources said on Monday.
The gross premium of 62 general and life insurance companies rose to nearly Tk 51.63 billion in the 2008 calendar year compared to about Tk 42.16 billion in 2007, provisional figures of the Bangladesh Insurance Association (BIA) showed.
Of the total, 17 life insurers under the private sector generated over Tk 35.97 billion worth of premium income in 2008, reflecting a 23 per cent rise over the previous year.
In the year 2007, the premium income of the private life insurers was Tk 29.16 billion, the figures revealed.
The government-run Jibon Bima Corporation (JBC) also earned Tk 3.07 billion as gross premium in 2008 compared to its previous year's amount of Tk 2.65 billion in 2007.
On the other hand, premium incomes of all the 43 general insurers also grew by around 17.40 per cent to Tk 9.45 billion in 2007, the figures revealed.
The premium earned by the private general insurers also increased to Tk 11.16 billion and that of state-run Shadaran Bima Corporation to Tk 1.41 billion against the previous year's figures of Tk 9.42 billion and Tk 1.26 billion respectively.
The sector insiders, however, attributed such a healthy premium growth to an increased contribution of the private insurers.
According to them, the overall premium incomes of the private insurance companies have been on a significant rise over the last few years.
The total premium income of the country's life insurers was only Tk 8.18 billion in 2001, they mentioned.
"Intensification of marketing drives and introduction of new products (policies) and expansion of their business in rural areas have helped the life insurers attain such a positive business growth in 2008," said an insurance operator.
The industry insiders, however, said the private life insurers now share around 90 per cent of the total premium business while the state-run JBC and SBC shares the remaining 10 per cent.
They also indicated that the country's sector would sustain a healthy premium growth in the 2009 calendar year also.
The BIA figures also showed that the total assets of private life insurers reached Tk 93. 05 billion and that of JBC Tk 18.45 billion as on December 2008 against Tk 71.65 billion and nearly Tk 16 billion respectively.
And the total assets of private general insurers rose to Tk 22.75 billion from Tk 19.83 billion and that of the SBC to Tk 9.62 billion from nearly Tk 7.77 billion.
Apart from that, the total investments made by the private general insurance companies were Tk 11.13 billion and Tk 4.33 billion by the SBC in 2008, while the amounts were Tk 8.57 billion and Tk 4.14 billion respectively in 2007.
The private life insurers also invested Tk 67.15 billion and the JBC Tk 7.79 billion in 2008 compared to nearly Tk 44 billion and Tk 8.38 billion respectively in 2007.