Growth driven by increase in popular understanding of insurance

With around 80% of Bangladesh’s population classified as poor, it is not surprising that the demand for life insurance is limited. However, the optimism expressed by life market practitioners at the beginning of the decade seems to have been justified. Seven years later, in 2007, companies reported satisfactory growth in life business, not only amongst clients in the expanding middle class but also amongst the less well-off in both urban and rural areas, where a good deal of progress has been made in promoting special, low price microinsurance schemes

Life insurance premium income in 2006 in Bangladesh totalled BDT26.8bn, an increase of 45.7% over the previous year. There are no separate statistics for personal accident and health.