Reimagining Insurance through Product Innovation
M. Nazeem A. Choudhury, Deputy Managing Director of Prime Bank, discusses the potential of bancassurance in Bangladesh and the steps needed to increase insurance penetration.
The Daily Star (TDS): What has been your experience with bancassurance so far?
M. Nazeem A. Choudhury (MNAC): My experience with bancassurance has been both insightful and promising, though not without its challenges. Bancassurance is still at a relatively early stage in Bangladesh. Currently, our insurance penetration ratio is just 0.40%, while neighboring countries have a much higher penetration ratio – Sri Lanka (2.0%), Pakistan (0.91%), and India (3.70%). The potential is significant in Bangladesh for insurance. With the expanding banking network and growing awareness of financial protection among customers, bancassurance can play a significant role in increasing our insurance penetration ratio.
TDS: What types of insurance are currently offered through your bancassurance partnerships?
MNAC: Currently, only life insurance services are being offered through our bancassurance partner, National Life Insurance PLC. We have introduced an affordable short-term life insurance product, Prime Life, which provides life insurance coverage for one year from as low as BDT 345. Our products are tailor-built to satisfy customer needs, such as pension for old age, children’s education, Hajj, and even for Den-Mohor. We offer both conventional and Takaful insurance for our customers. We plan to offer health insurance, a highly need-based product designed to safeguard the health and financial security of families.
To ensure customers clearly understand product terms and exclusions, we have taken several structured measures. Regulatory training is provided to our Relationship Managers, and only those who have completed this training are authorized to sell insurance products. Our insurance partner conducts comprehensive, product-specific training to enhance the team’s understanding and communication skills. Representatives from the insurance partner are present during the sale process to provide support.
TDS: How do you handle insurance-related complaints and ensure compliance with Bangladesh Bank and IDRA guidelines?
MNAC: We follow a structured and collaborative approach to handle insurance-related complaints, ensuring full compliance with guidelines issued by both Bangladesh Bank and the Insurance Development and Regulatory Authority (IDRA). All complaints received at branches, call centers, or other channels are formally documented and escalated to our centralized Service Quality team. They work closely with the bancassurance team and the respective insurance partner to investigate and resolve issues within the prescribed timeframe. Customers are kept informed throughout to ensure transparency.
TDS: What is your outlook on the future of bancassurance in Bangladesh?
MNAC: The future of bancassurance in Bangladesh appears promising, given the growing banking network, increasing financial inclusion, and evolving customer needs. To realize its full potential, several critical areas must be addressed. There is a pressing need to shift towards need-based insurance products that are simple, affordable, and tailored to the financial realities of the average customer. Regulatory and product training for bank staff must be more comprehensive. Increasing public awareness and trust in insurance is crucial. A coordinated effort from banks, insurers, and regulators is needed to build awareness, educate customers, and dispel longstanding misconceptions about the industry.
