Bangladesh’s life insurance sector has experienced growth in revenue and investment, yet the rate of policy claim settlements has declined, raising concerns among industry experts. In 2024, the total premium income of life insurance companies fell by BDT 121 crore compared with the previous year, reaching BDT 11,390 crore. Despite this dip, the sector’s life funds and investment portfolios showed steady expansion.
At present, the country hosts 36 life insurance companies, encompassing state-owned, private, and foreign entities. According to the Bangladesh Insurance Association (BIA), investment in the life insurance sector rose from BDT 33,461 crore to BDT 34,293 crore in 2024, while total life funds increased from BDT 31,918 crore to BDT 33,232 crore.
Life funds consist of customer premiums combined with returns from company investments. These funds are used to settle claims upon the death of policyholders or the maturity of policies, and they appear as liabilities on company balance sheets.
The leading life insurance companies in Bangladesh, along with their 2024 premium income and claim payouts, are summarised below:
| Company | Premium Income (BDT crore) | 2024 Claim Payout (BDT crore) | Remarks |
|---|---|---|---|
| MetLife (Foreign) | 3,310 | 2,936 | Sector leader |
| National Life | 2,106 | 1,204 | Top local company |
| Delta Life | 953 | 456 | Premiums increased |
| Life Insurance Corporation | 897 | 420 | Growth observed |
| Pragati Life | 582 | 310 | Growth observed |
| Popular Life | 531 | 270 | Payout declined |
| Prime Life | 381 | 150 | Payout declined |
| Meghna Life | 336 | 180 | Payout declined |
| Sandhani Life | 244 | 120 | Growth observed |
| Rupali Life | 219 | 90 | Payout declined |
Overall, the claim settlement rate in the sector declined by 7.79% in 2024, amounting to BDT 8,452 crore. Among the 17 companies with negative claim settlement rates, FairEast Life, Shanta Life, Homeland Life, Progressive Life, and Swadesh Life were particularly affected. Some companies reported zero balances in their life funds, restricting their ability to honour claims.
Md. Kazim Uddin, CEO of National Life, emphasised, “We prioritise claim settlements above all. Research shows that for every claim paid, an average of ten new policyholders are motivated to purchase insurance.” Over the past five years, National Life’s premium income has more than doubled.
Moin Uddin, a faculty member in the Department of Banking and Insurance at Dhaka University, observed, “While premium income and investments are rising, the claim settlement rate directly influences customer trust. A declining payout rate discourages new policy uptake, underscoring the need for stronger regulatory oversight by the IDRA.”
As the life insurance sector grows financially, sustaining customer confidence through prompt and reliable claim settlements remains critical for long-term stability.