Islamic insurance has emerged as a fast growing industry in Bangladesh. Procuration costs, as a result, have to be raised and at the same time quality of business falls.
Less Public awareness A vast majority of people especially in rural areas are left outside the insurance coverage. Besides this some field officials also create some illegal acts. Therefore, instance companies should settle the claims as quickly as possible to create a healthy public image.
Another obstacle of Islamic insurance is lack of Islamic capital market Azad et al.
Management is not taking initiative to increase their marketing expansion. Low Savings People of Bangladesh have a very small saving potentially and thus have less or no disposable income.
The number of people who can bear the premium to the insurance company is very few in regard to those mentioned above. Life insurance and other insurance are mostly dependable on the saving of the people. They think that they might have better scope for performing their business as the economic condition of the urban is better than the rural areas.
Our local company does not want to change themselves. In the late s, Mr. Lack of training for the employees Spread of insurance business in Bangladesh failed for lack of proper training by the employees specially the field employees of insurance companies.
An important reason for the dismal performance of insurance business in Bangladesh is poor client services provided by the insurance companies. The all pervasive stringent regulatory functions carried and exercised by the office of the controller of Insurance CI is not consisted with the market liberalization policy of the government.
Absence of business ethics: Illiteracy leads one to think that the insurance is deception; it is no value in life. Date Of Registration 2. But their businesses are not growing so fast with that rate.
The lack of public interest can be solved using mass media. This situation creates a vast opportunity for insurance business in Bangladesh. Sometimes they are eager to pay less than the desired amount by creating various circumstances such as they try to say that the disaster of the subject matter of the policy is not responsible due to their activities.
All of these people fight hard to earn their livelihood and are marginal in relation to the expenditure with the income. Developing mass awareness about insurance People are now much more conscious about their safety.
Therefore the people are discouraged to take insurance policy because they think that the complexities will create extra pressure on their mind which may hamper other jobs. So training is very necessary to overcome problem in insurance.
This mainly results from the 35 Problems and Prospects of Insurance Business in Bangladesh unawareness among the people. The private insurance companies are realizing this fact and playing role in the financial market. Absence of business ethics Some insurance companies create harassment on the policy holders or sometimes on the dependents of the policy holders when they want back their money after death or maturity.
Insurance business is not an exception 0of this. This gives the PSC, compared to private companies, many advantages. If you support or help support a family, the loss of income that would result from your death could mean that your surviving dependents may face financial difficulties.
After this at government passed the Insurance Amendment Ordinance and insurance companies to start their business in private sector. Increase in literacy rate is helping predominantly to create awareness among the people regarding taking insurance policy. For this reason this product type offers higher protection at a lower cost.
For the instability in politics,many disruptive situations are often created which are bad for any businesses.
Low attractive offerings The offerings of much of the insurance companies are not so much attractive that they can allure people to buy a life policy. One of the major problems in insurance company is lack of marketing policy.
35 Problems and Prospects of Insurance Business in Bangladesh Objectives of the report Primary objective: The main objective of this report is to show the scenario of "Problems and prospects of Insurance in Bangladesh" at a glance.
The main problems are over population, poverty, unemployment, crime, juvenile delinquency, corruption, lack of nutrition, prostitution, beggary and vagabond problem, dowry and women repression, lack of proper distribution of wealth, divorce, mental illness, mentally disability problem, lack of security, drug addition, lack of sound health, etc.
Problems of General insurance in Bangladesh. In a developing country like Bangladesh, insurance companies are playing a very important role in economy.
Though insurance industry has a very prospect in the economy but for some reasons it is totally failed to achieve its goal. Problems and prospect of insurance Business in Bangladesh.
Life Insurance: Life insurance may be defined as a contract, whereby the insurer, in consideration of a premium, paid either in a lump. The report was based upon the overall insurance company’s problems and prospects in Bangladesh. I was duly approved by our Course Teacher maghreb-healthexpo.coml Hoque.
This report will help us know about the insurance business problems and prospects in Bangladesh. Insurance is a system of spreading the risk of one to the shoulders of many/5(7).
Problem of Insurance Business in Bangladesh In a developing country like Bangladesh, insurance companies are playing a very important role in the economy. Though insurance industry has very prospect in the economy but for .Problem and prospect of insurance in bangladesh