Bancassurance in Bangladesh

Bancassurance is a relatively newer version of insurance product offered in Bangladesh, where banks integrate both banking and insurance schemes [1]. This innovative approach allows banks to act as corporate agents of insurance companies, selling insurance products to their existing customers [2]. The introduction of bancassurance in Bangladesh aims to increase insurance penetration, promote financial inclusion, and enhance consumer protection [2].

Benefits of Bancassurance in Bangladesh

  1. Increased Insurance Penetration: Bangladesh has a low insurance penetration rate of only 0.40 percent, compared to neighboring India’s four percent [3]. Bancassurance provides an opportunity to reach a larger population segment and increase insurance coverage in the country [3].
  2. Financial Inclusion: By leveraging the extensive branch network and customer trust of banks, bancassurance can bring more people under the umbrella of formal financial services [3]. This promotes financial inclusion and provides access to insurance products for underserved areas and rural communities [3].
  3. Customer Trust and Education: Banks in Bangladesh enjoy a higher degree of public trust compared to insurance companies [3]. With bancassurance, banks can leverage this trust to educate their customers about the importance and benefits of insurance, bridging the insurance literacy gap in the country [3].
  4. Tailored Insurance Products: Bancassurance allows for the development of more tailored insurance products that complement existing banking services [3]. This synergy provides customers with more holistic financial solutions that address their specific needs [3].

Challenges and Considerations

  1. Regulatory Framework: The successful implementation of bancassurance in Bangladesh requires a robust regulatory framework to ensure transparency, accountability, and consumer protection [3].
  2. Workforce Upskilling: Banks need to upskill their workforce to effectively handle the bancassurance domain and provide quality insurance services to their customers [3].
  3. Selection of Insurance Partners: Banks must carefully select insurance companies with a good reputation, high claim settlement ratios, and prudent fund management practices to ensure customer satisfaction and trust [2].


Bancassurance in Bangladesh offers a renewed version of risk management and financial services by integrating banking and insurance schemes. It has the potential to increase insurance penetration, promote financial inclusion, and provide tailored insurance products to meet the diverse needs of customers. However, the successful implementation of bancassurance requires a strong regulatory framework, upskilling of bank employees, and careful selection of insurance partners.

Learn more:

  1. Bancassurance in Bangladesh: Renewed version of risk …
  2. Bancassurance can change how we do insurance | Daily Star
  3. Bancassurance for financial inclusivity | Daily Star
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