Bangladesh's Insured Population Declines 40% Amid Tk925 Crore Insurance Reform Project
Despite a Tk925 crore investment aimed at boosting insurance coverage, Bangladesh's insured population has decreased by 40%. The project, initiated in 2018, sought to increase policyholders from 1.36 crore to 2 crore, but by 2024, numbers fell to 82.2 lakh.
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The Bangladesh Insurance Sector Development Project, launched in 2018, has seen the insured population drop from 1.36 crore to 82.2 lakh by the end of 2024, despite the goal of reaching 2 crore. Premium income growth has also collapsed, with life insurance premiums turning negative by 2024, while overall premium growth plummeted from 10.76% to just 0.49%.
The project, budgeted at Tk632 crore but revised to Tk925 crore, is set to conclude in mid-2026. Structural issues, including a lack of technical expertise and low public trust, hindered progress. The World Bank noted increased technical capacity at the regulatory level, yet challenges in automation and claim settlements persist.
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