Prospects:There should be vigorous run through out the state to do the people aware of the public-service corporation and chances of purchasing insurance. Bangladesh is a dumbly populated state and most of the people in our state are hapless. They would definitively travel for insurance for the security and the hazards covered by the insurance. Therefore.
the chances of Insurance are really high in Bangladesh if the undermentioned steps can be adopted.First of all. there is no option of quality service. Insurance being a service rendering entity must supply speedy services. Policyholders are extremely disgruntled with service of JBC and SBC. Due to hapless quality services. public corporations are fring market. In order to guarantee their continuity.
such corporation must pay equal attending on their quality of service. Private companies besides need set their all out attempts to better quality of service so as to beef up their place.Second. the authorities should extinguish the trouble in licencing process and should non detain in the blessing of new companies if all the demands are fulfilled. It will assist non merely to increase volume of concern but besides solve the jobs of unemployment.
Finally. the policy holders are really much worried about the colony of claims. Ordinary people besides consider it chief restraint. Therefore. case companies should settle the claims every bit rapidly as possible to make a healthy public image. For this intent the claim colony process can be simplified and the insurance companies can supply proper written guidelines of claim colony to the policyholders.If the above stairss can be taken.
more and more people in Bangladesh will be interested in purchasing insurance.Problems:1. [ Low PER CAPITA INCOME ] Poor economic status is considered to be the chief ground for hapless life insurance incursion in Bangladesh. The state has a really low per capita income and over 50 % of our entire population lives below the poorness line. Inability to salvage or negligible nest eggs by a huge bulk of population kept them off from the skyline of life insurance.
2. [ POOR KNOWLEDGE OF AGENTS ] The selling of insurance is greatly hampered in the distant small town of Bangladesh where the agents are appointed from respected vicinity. This is because ; educated immature people are seemed to be loath to go insurance agents.
Therefore. individuals happening no occupation or individuals holding lesser cognition become insurance agents whom can non introduce themselves to the full with the whereabouts of insurance. Such agents can non play efficient function in converting a prospective policyholder.3. [ ILLETERACY ] Mass illiteracy is another factor that adversely affects the selling of insurance. About 70 % of the population is drifting in the sea of ignorance. Illiteracy leads one to believe that the insurance is misrepresentation ; it is no value in life. They can non believe reason because they do non cognize what is insurance and what its importance as security for hereafter.
4. [ RELIGIOUS SUPERSTITION ] Religious attitude of the people besides stands against efficient insurance. The spiritual people believe that the hereafter is unsure. it is in the manus of Allah and they do non believe it necessary to purchase life insurance policy for them.5. [ Low AWARENESS ] Insurance consciousness is hapless.
Agents are non skilled plenty. These agents can non execute their occupation decently to do the people aware of life insurance.6.
[ Low SAVINGS ] People of Bangladesh have a really little salvaging potentially and therefore hold less or no disposable income. Almost the whole of the income is exhausted in the procedure of keeping the daily life. Thus they are left with small sum. which may non hold to sufficient for the payment of premiums.
This factor discourages many to purchase life insurance policy.7. [ LACK OF CONTINUITY ] Discontinuation of insurance policy is found higher.
This besides adversely affects the market efficiency of insurance concern.8. [ SHORTAGE OF FUND ] Most of the policyholders can non go on their policies owing to monetary value spiral and deficit of fund.9. [ LACK OF REMAINDER ] Increase in liability. deficiency of reminder notice from the insurance company causes for discontinuance of policy.10.
[ NEGLIGENCE OF POLICY HOLDERS ] Many of the policyholders have expressed that ; their policies lapsed for their ain carelessness to pay premium in clip.11. [ RESTRICTION ] Another of import ground for discontinuance is restriction investing allowance by the authorities associating to income revenue enhancement.12. [ POOR SERVICES TO CONSUMERS ] An of import ground for the blue public presentation of insurance concern in Bangladesh is hapless client services provided by the insurance companies. The public image of service from life insurance establishments is really hapless.
13. [ IMAGE ] High oversights of life insurance policies do much to harm insurance image.14. [ Red TAPISM TO OBTAIN COMPENSATION ] When an accident takes topographic point. a claimant faces many troubles to obtain money from the insurance company.
This besides discourages people for being a policyholder.15. [ LACK OF NEW PRODUCT ] In a dynamic life insurance market. one can anticipate to see new merchandise coming out every now and so. But still today one can barely see any new merchandise in the insurance market in Bangladesh.