The 13 newly licensed life insurance companies in Bangladesh have all reported incurring losses throughout last year due to declining premium income and high management cost.
This was the content of the report prepared by the Insurance Development Regulatory Authority (IDRA), the country’s insurance regulator.
The report showed that the 13 new life insurance firms posted earnings of Tk1.17 billion (US$15
million) against their management cost of Tk1.18 billion (US$15.1 million).
Overall, the country’s life insurance industry, which involves 31 life insurance firms including the newly licensed ones, made an excessive expenditure of Tk2.63 billion (US$33.4 million) last year, according to the IDRA report.
In an interview with the Dhaka Tribune, Shandhani Life Insurance managing director Ahsanul Islam Titu said the country’s insurance companies could not do well in business because they are not properly implementing existing rules and regulators.
Another insurance executive said poor business performance also resulted to excessive management expenses. – BusinessNewsAsia.com