It is repeatedly said that the insurance industry is absolutely a service industry. Its viability and continuance are dependent on personalised service to its clients, which again depends on insurance education of the marketing people and employees of the insurance companies.
Marketing staff or business procurement agents are the backbone and lifeblood of any insurance company. In Bangladesh, marketing staff comprises about 70 per cent-75 per cent in life insurance and 15 per cent-20 per cent in non-life insurance of the total workforce of insurance industry. Although their participation in terms of number of workforce is less, their importance is supreme.
Perhaps the company will not have any business activity unless marketing staff brings business to it. They are the front-line people to contact persons/business houses and procure business for the company. Unfortunately, the marketing/sales professionals in our county are not qualified, trained or properly regulated. Even many of the sales agents don't have adequate product knowledge and the company employing them doesn't bother to train them up in the right direction. The company just wants business - that's all. This leads to unethical competition.
The social importance of insurance and its benefits to the policyholders are not discussed adequately. There is also no awareness-creating programme taken by the insurers or by the government for the common people. So, insurance has got a negative image.
Absence of business ethics is also another major factor bringing in indiscipline and irregularity in the insurance industry. Some of the insurers in the name of competition indulge in certain business tactics, which directly violate the provisions of insurance laws and rules. These relate mainly to issue of covers and documents giving higher commissions. Having a licence of agents or marketing forces needs no certificate in insurance.
Due to lack of insurance education at all levels (from marketing to executives), there is a lack of business ethics that causes unethical business practice. In the long run, this results in non-sustainability of insurance business. Absence of healthy competition is also another factor leading to indiscipline and irregularity in the insurance industry. Healthy competition occurs when there is a well-informed and well-advised consumer group. This also needs insurance education and awareness.
In Bangladesh, no educational institutes are offering formal courses on insurance at graduate level. Non-formal insurance education means different training and certificate programmes offered by different institutions. The Bangladesh Insurance Academy is the only institute which is offering diploma in insurance (both life and non-life) and providing training to the insurance personnel. The Academy has so far awarded its diplomas to about 400 professionals. This is too meagre for a growing insurance industry as it is in Bangladesh.
Following steps may be taken for the positive image of insurance industry of Bangladesh:
I. Field-level marketing people should have a proper product and marketing knowledge. They can enlighten the customers about real need and benefit of insurance, instead of alluring them to buy their products. So, proper agent training/coaching by senior level employees is a must to motivate them to repose trust on the company and its products.
ii. Agent recruitment should be made on the basis of a minimum knowledge on insurance which is to be ensured through training and examination. These should be monitored by the Insurance Development and Regulatory Authority (IDRA)
iii. Dishonest field workforce should be given proper punishment and if one company sacks such people, another should not allow them to join. There should be training of marketing field workers on ethical issues.
iv. There should be prompt customer's service because people insure against their lives and property to get compensation. So, claim service should be very quick and correct. Proper information should be given at the time of issuing policy so that it takes less time to verify the particulars at the time of claim settlement.
v. Insurance industry/company needs brand ambassador with vibrant image to popularise insurance. An insurance company can work with NGO and drama producer/drama team which can visualise properly the need and benefit of insurance to the common people.
vi. To diversify products, insurance schemes should offer a host of financial offers in life insurance.
vii. The IDRA and the Bangladesh Insurance Academy can work together to create awareness among the people through seminars/workshops at the division and district levels. The IDRA and the Bangladesh Insurance Association can play roles through media advertisement to create awareness among the mass people.
viii. The Academy and the IDRA can request the National Curriculum and Text Book Board to include insurance at the secondary and higher secondary levels which can create insurance awareness among the people.
ix. Existing customers are the ambassadors of the company. If they become satisfied, they will buy insurance products time and again. There is a saying:
" A satisfied customer is the best advertisement''. So, after-sales service is very important. The best way of creating trust in the mind of the insured is by building a credible promise which s/he is supposed to get after being issued the policy, such as intimation letter of premium, change of installment of paying premium (such as instead of yearly and half- yearly) and change of nominee etc.
x. There should be a homogeneous organogram with same nature of designation which can standardise the profession and can create job satisfaction in the insurance industry.
As a service industry, insurance involves a huge level of people's interaction. It is very important to enrich the employees in order to satisfy the customers. The prompt claim settlement is very important to customers. Insurance organisations will have to create a motivational climate for all levels of employees, especially for marketing-related employees because they are the backbone and life blood of an insurance organisation. When they perform poorly, it is usually for either inadequate knowledge or lack of motivation. Both indicate the need for training and development. In an environment of increasing competition and higher consumer expectation, only qualified and trained human resources can play an effective role for the expected growth of the insurance industry.
So, it is high time for insurance professionals to work together for a better profession and economy. When insurance awareness education will prevail in the insurance industry with competent workforce, efficient common system, professional commitment and a firm back-up of government patronage with political, social and economic stability, then the industry will enter into a world of dignity, free from image constraints.
All the stakeholders in insurance industry should establish a long-term relationship based on mutual trust. The regulator will guide, advise, control, support and facilitate the whole industry. This is how the existing industry may turn out to be a really vibrant professional domain.
The writer, ACII (UK), is the Chief Faculty member of the Bangladesh Insurance Academy. bangladeshinsuranceacademy@gmail.com
Building positive image of insurance industry
S M Ibrahim Hossain | Published: January 27, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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