Bangladesh’s life insurance sector has recently witnessed growth in revenue and investments, yet concerns have emerged as policy claim payouts have decreased. In 2024, the total premium income of the country’s life insurance companies declined by BDT 121 crore compared to 2023, settling at BDT 11,390 crore. Despite this slight fall in revenue, the sector’s life funds and overall investments have shown steady growth, signalling long-term financial stability.
At present, 36 life insurance companies operate in Bangladesh, encompassing state-owned, private, and foreign institutions. According to data from the Bangladesh Insurance Association (BIA), total sectoral investments increased to BDT 34,293 crore in 2024 from BDT 33,461 crore in the previous year. Similarly, the total life fund rose to BDT 33,232 crore, derived from customer premiums and returns on company investments.
Life funds primarily serve to settle claims arising from policyholder death or maturity and are recorded as liabilities on company balance sheets.
The table below presents the premium income and claim payouts of leading life insurance companies in Bangladesh for 2024:
| Company | Premium Income (BDT crore) | Claims Paid (BDT crore) | Remarks |
|---|---|---|---|
| MetLife (Foreign) | 3,310 | 2,936 | Sector leader |
| National Life | 2,106 | 1,204 | Leading local firm |
| Delta Life | 953 | 456 | Premium growth noted |
| Life Insurance Corporation | 897 | 420 | Significant increase |
| Pragati Life | 582 | 310 | Growth observed |
| Popular Life | 531 | 270 | Payout decline |
| Prime Life | 381 | 150 | Payout decline |
| Meghna Life | 336 | 180 | Payout decline |
| Sandhani Life | 244 | 120 | Growth observed |
| Rupali Life | 219 | 90 | Payout decline |
In 2024, the sector’s overall claim payout fell by 7.79% to BDT 8,452 crore. Among the 17 companies reporting notable reductions were FairEast Life, Shanta Life, Homeland Life, Progressive Life, and Swadesh Life. Some firms faced limitations in claims settlement due to negligible balances in their life funds.
Mohammad Kashim Uddin, CEO of National Life, stated, “We prioritise timely claim settlement. Research indicates that each fulfilled claim inspires, on average, ten new customers to purchase insurance.” Over the past five years, National Life’s premium income has more than doubled.
Professor Moin Uddin of the University of Dhaka’s Department of Banking and Insurance commented, “While premium income and investments are rising, claim payout rates play a crucial role in sustaining customer trust. A declining payout rate discourages new policy uptake, emphasising the need for robust supervision by the Insurance Development and Regulatory Authority (IDRA).”
Thus, although Bangladesh’s life insurance sector demonstrates financial growth, maintaining customer confidence and ensuring prompt, reliable claim settlements remain essential for long-term stability.