Experts stated that there is a need for technology-focused in the insurance sector with an aim to bring back people’ interest in insurance.
The adoption of a new insurance technology that improves customer experience, Insurtech, simplified policy management and increases competition, will help find possible interventions to redraw the insurance map in Bangladesh, as stated by the experts during a virtual discussion on June 23.
In association with Milvik Bangladesh Limited, A2i Programme organised the event titled “Emergences of Insurtech: How we are adapting and embracing it in Bangladesh”. Masud Rana, joint director at the Bangladesh Financial Intelligence Unit of the Bangladesh Bank, moderated the discussion.
Md Quamril Hasan, the manager at Swisscontact Bangladesh, during a keynote paper presentation, stated that the contribution of insurance premiums to the country’s GDP is only 0.4 per cent, while the same is 3 to 4 per cent in other developing countries and 8 to 11 per cent in developed countries.
He also stated that since 2011, the insurance penetration in Bangladesh has been decreasing.
He added that the country should embrace Insurtech, which emerged towards the end of 2010 as a small endeavour in banking.
By using technology such as data analysis and AI, Insurtech allows products to be priced more competitively.
The country manager at Milvik (Bima BD), Ankur Basu emphasized that the new insurance products should be introduced by highlighting their importance among the people. During the same time, there should also be different small user based insurance products for bus passengers, train passengers, farmers and others.