For that reason government changed the company management, policy and applies new rules and regulations which system was very tricky and uncomfortable for the mass people.
Higher cost of business Growing cost of business is another problem that insurance companies are facing now a day. This dirty role of government not only encourages corruption but also hinders proper growth of insurance business.
Lack of supervision from the government Lack of surveillance from government ministry encourages many insurance companies to follow some unethical practices like make harassment to policy holder and showing less in the financial statement.
At one side, insurance business is not well known to the general people and on the other side; the known people are dubious about its service. Therefore they are quite unable to give the amount to the insurer which is called as premium and regarded as safety or precautionary measures against any accident.
They identified it as a major constrain behind the commencement of new insurance business. The performance of the job holders is not properly appraise 4.
Lack of exposure Another main problem in the country is that the media is unconcerned to send the right message regarding insurance to the people. You should consider this as a last resort.
Increased population There is a big opportunity lies ahead for the insurance companies as the population of our country are increasing day by day. Besides this the policy holders are not willing to pay too much premium with growing cost that is hampering the strategies of insurance companies.
Although most of people of our country live under extreme poverty level and want to avoid insurance policy number of potential policy holders in Bangladesh is growing with growth of the population.
But their businesses are not growing so fast with that rate. This can cover a huge portion of the society who can be a prospective target market for this business.
The number of people who can bear the premium to the insurance company is very few in regard to those mentioned above. This not only destroying the reputation of the well known insurance companies but also creates negative impact in the mind of the people about insurance. It is also an attractive instrument of savings.
When they will afford to minimize their risks at a lower price, they will take that opportunity and they will become to get used to it.
This means they have to stick to the terms of the decision made by the Ombudsman. All of these people fight hard to earn their livelihood and are marginal in relation to the expenditure with the income. The uncertainty of agriculture due to crop failure caused by climate variation, drought, cyclone, flood and pests affects farmer income as well as government revenue.
Inability to save or negligible savings by a vast majority of population kept them away from the horizon of life insurance. Political problems Political instability Political instability is a major problem in Bangladesh. This feeling of distrust is very intense in the case of life insurance as life insurance contract is usually made for a longer period of time.
But they are deprived from taking loans from bank for large amount. They provide tiny amount advertisement, which is not sufficient for increasing business development. Therefore these field level agents are unable to fulfill their target and act as a constraint in the insurance business.
Those who are harassed by the insurance companies discourage other not to take an insurance policy Lack of motivation program towards public According to Green Delta Life Insurance Company the people of our country are not much motivated by the company to take insurance policy for safeguarding them selves against any kind of risk.
In a dynamic insurance market one can expect to see new products being promoted at regular intervals.PROSPECTS & PROBLEMS OF LIFE INSURANCE IN BANGLADESH: CHALLENGES AHEAD Kazi Md.
Mortuza Ali 1. INTRODUCTION Insurance consumption in any society would depend on the quantities demanded, the This problem is known to all and all are affected by it, but it seems that we are not very. BANGLADESH UNIVERSITY of BUSINESS & TECHNOLOGY Report on A problem and prospets of insurance business in Bangladesh and ways to overcoming the problem.
The progress of insurance business depends on the progress of economic ultimedescente.comnce business also faces many problem. So if we develop economic condition as well as overcome the problems, it will help a lot to flourish this business in our country.
Problems and Prospects of Insurance Buisness in Bangladesh Uploaded by Zahirul Islam.
Save. But lack of capital in our country creates the problem of insurance business. Lack of skilled staff: There needed a lot of educated and skilled staff for insurance business. Documents Similar To Problems and Prospects of Insurance.
Another problem is that the insurance company does not provide adequate information in the company’s websites which can fulfill the queries of their potential customers and satisfy themselves to buy an insurance policy. America's Health Insurance Plans. Around the country and in the states, AHIP monitors and advocates on a range of important health care issues.Download