Ala Ahmad There is a wrong perception among many people that insurance is similar to a bank's savings product. It is important for customers to distinguish between savings schemes and insurance policies, as the latter provides financial protection against future unforeseen events, says Ala Ahmad, Chief Executive Officer (CEO) of MetLife Bangladesh, in an exclusive interview with The Financial Express. The full excerpts of the interview are given below:
Question: The government of Bangladesh is introducing Bancassurance for the first time in the country. How will this impact the insurance sector?
Mr. Ala Ahmad: Bancassurance will complement the country's existing agent channel to bring the benefits of insurance to a wider section of people. It is good for consumers, as they get the convenience of purchasing their insurance policies from their banks. This will benefit the existing agent channel as well, because more people will be aware of insurance, and awareness will bring the much-needed inclination to purchase insurance. And for the country, this means insurance can now get one step closer to a wide range of Bangladeshi people who were previously not protected with insurance. That is why everyone wins with Bancassurance.
Question: Many people still do not opt for insurance in their financial planning. What are you doing to raise awareness about this?
Mr. Ala Ahmad: It is true that many people still do not go for insurance in their financial planning. Through a research, we have found that there is heavy reliance on bank savings to fulfill financial priorities, leaving many people vulnerable to future uncertainties.
We give the most importance to transparency in settling insurance claims or giving benefits and making insurance simpler. I think customers have the right to know how well a company is doing in terms of claims settlement. In 2023, we settled claims worth Tk 29.81 billion (2,981 crore) in Bangladesh and over the last six years, the settlement amount has been more than Tk. 105 billion (10,500 crore). We are actively informing our customers and all stakeholders about our claims settlement success.
MetLife has around 14,000 financial associates or agents in Bangladesh. They are also constantly working to raise awareness of the people in all districts of Bangladesh about insurance. We see that such initiatives are bringing benefits, because our customers remain committed to be protected with insurance by paying their premiums regularly.
Question: What are the concerns of the people about their future? Are they buying insurance policies to protect themselves?
Mr. Ala Ahmad: We often hear the people talk about their top three concerns--unexpected health emergencies; funding children's education; and managing post-retirement finances. However, many of them are still not considering insurance policies to protect themselves against the unforeseen future. We have also found that the "Subjective Norm" or what friends and family members say about insurance is the key driver of an insurance policy purchase decision. This also erodes trust in the insurance sector.
The subjective norm is the perception that an individual forms hearing from the people important to that individual. That means if the surrounding people or community talk about insurance positively, the likelihood of the individual getting financial protection from insurance increases significantly.
That is why I feel we need more positive stories about our insurance sector because it ultimately benefits our friends and families.
Question: What should customers do to make sure they get benefits and claims settled against their insurance policies properly?
Mr. Ala Ahmad: There is a wrong perception among many people that insurance is similar to a bank's savings product. It is important for customers to distinguish between savings schemes and insurance policies, as the latter provides financial protection against future unforeseen events. To avoid unpleasant experiences with their insurer, customers should also check the insurer's financial strength and reputation in the market. It is vital that customers also pay their premiums on a regular basis to keep their policies active.
Question: How strong is MetLife financially in Bangladesh?
Mr. Ala Ahmad: MetLife is an international organisation with its history spanning over 150 years. In Bangladesh, we have been operating for more than 70 years. We are able to sustain our excellent business growth because of our responsible business practices, rigorous expense management, prudent investments, and careful maintenance of solvency to protect the interests of policyholders. Today, our total assets stand at BDT 190 billion (19,000 crore); we invested over BDT 173 billion in various secured and diversified sectors and settled claims involving BDT 29.81 billion in 2023. We are one of the top taxpayer organizations in the county and received AAA certification which is the highest ranking in financial strength. These are strong benchmarks in the industry and will help customers remain confident about MetLife's promise of standing beside customers in their difficult times.
© 2024 - All Rights with The Financial Express
