The Bangladesh Insurance Association (BIA) has unveiled its comprehensive annual report for 2024, providing a detailed audit of the nation’s private insurance landscape. Presented during the association’s Annual General Meeting, the findings illustrate a sector defined by a notable dichotomy: while total assets and life funds continue to show robust expansion, premium income and investment strategies are experiencing a period of significant volatility. This dualistic performance suggests that while the industry is successfully hardening its financial foundations, it is simultaneously grappling with a cooling market for new policies and a shifting investment climate.
In the private life insurance segment, the report highlights a marginal contraction in top-line revenue, with total premium income dipping from 115,107 million BDT in 2023 to 113,897 million BDT in 2024. Despite this slight stagnation in revenue generation, the underlying fiscal health of the sector remains resilient. The “Life Fund”—the essential reserve of capital held to meet future policyholder obligations—saw a healthy increase, rising from 319,182 million BDT to 332,322 million BDT. Furthermore, the total asset base of life insurers grew by over 4%, reaching 460,043 million BDT, indicating that the appreciation of existing holdings is currently outpacing new business growth.
Conversely, the non-life, or general insurance sector, maintained a steady revenue trajectory, posting a 2.70% increase in premium income to reach 43,495 million BDT. However, this growth in sales was curiously offset by a contraction in investment activity. Capital deployed in investment instruments fell from 57,720 million BDT to 56,140 million BDT, a decline of approximately 2.74%. This suggests that non-life insurers may be adopting a more defensive liquidity posture or are finding fewer high-yield opportunities in the current economic environment.
Comparative Financial Analysis: 2023–2024
| Insurance Segment | Key Metric (Million BDT) | 2023 Performance | 2024 Performance | Percentage Shift |
| Life Insurance | Total Premium Income | 115,107 | 113,897 | -1.05% |
| Life Fund Size | 319,182 | 332,322 | +4.12% | |
| Total Investments | 334,613 | 342,929 | +2.49% | |
| Total Asset Base | 441,411 | 460,043 | +4.22% | |
| Non-Life | Total Premium Income | 42,351 | 43,495 | +2.70% |
| Total Investments | 57,720 | 56,140 | -2.74% | |
| Total Asset Base | 116,494 | 119,187 | +2.31% |
Financial analysts observing the BIA report have noted that the sustained growth in total assets across both sectors points to a gradual strengthening of the industry’s solvency margins. Nevertheless, the report serves as a vital reminder for the need for more sophisticated strategic planning. To maintain this upward momentum, the BIA suggests that insurers must refine their investment portfolios and develop more innovative, consumer-centric products to reignite premium growth in an increasingly competitive and complex financial market.