BRAC Bank on Thursday launched its Bancassurance service, enabling customers to access insurance products directly through the bank.
This offering covers both life and non-life insurance and is available at all branches nationwide.
Mohammad Jainul Bari, Chairman of the Insurance Development and Regulatory Authority (IDRA), was the chief guest at the launching ceremony.
Speaking on the occasion, Mohammad Jainul Bari said it was frustrating that insurance penetration was very low in the country.
Lack of awareness was the key reason for it, he said.
He expressed hope that the huge network of banks would help expand insurance coverage.
Nurun Nahar, Deputy Governor of Bangladesh Bank, said Bancassurance would make insurance more popular in the days coming and as a result insurance penetration would increase.
"It is a time-befitting step from both the regulators -- IDRA and Bangladesh Bank," she said.
Amol Krisna Mondol, Additional Secretary of the Financial Institutions Division of the Ministry of Finance, said after bancassurance, there would be a positive competition in the market.
"It will also be easier and simpler to sell insurance policy through banks from now on," he said.
Bancassurance is a collaborative effort between a bank and an insurance company, allowing the bank to distribute insurance products through its channels. BRAC Bank has obtained regulatory permission and licences from Bangladesh Bank and IDRA. Initially, the bank will offer insurance products from MetLife Bangladesh and Green Delta Insurance, with plans to partner with more insurance companies to expand customer options.
Selim R. F. Hussain, Managing Director & CEO, commented on the launch: "With the country's progress and increasing income levels, there is growing demand for insurance products alongside banking services. This collaboration between banks and insurance companies will facilitate convenient access to insurance products, enhancing trust and confidence. Such industry partnerships will boost insurance penetration, promote financial inclusion, and provide financial security."
He added, "In line with our commitment to customer-centricity, our valued customers can now confidently access insurance products through BRAC Bank. We are dedicated to continuously introducing new services to meet our customers' evolving needs."
Ala Ahmad, Chief Executive Officer, MetLife Bangladesh, said: "Our partnership with BRAC Bank PLC., one of the leading and most trusted financial institutions in the country, demonstrates our vision to expand the reach of insurance for the people of Bangladesh. I am delighted that through this significant collaboration, millions more customers can now confidently incorporate MetLife's world-class insurance protection into their financial planning."
Farzanah Chowdhury, Managing Director of Green Delta Insurance Company; "We are honored to announce our partnership with BRAC Bank to extend insurance services. Bancassurance will create an alternate distribution channel for insurance leading towards an increase in penetration. It will drive financial inclusion in the country and make insurance more convenient especially to women and young generation."
Also present were Syed Abdul Momen, Deputy Managing Director & Head of SME Banking; and Mahbubur Rahman, Chief Bancassurance Officer, all from BRAC Bank.
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