Bangladesh Bank (BB) has introduced bancassurance, enabling 61 scheduled banks in the country to market and sell insurance products to their clients. The directive allows banks to become ‘corporate agents’ and participate in the business of selling insurance products. The bancassurance model, established through bank branches, requires banks to sign agreements with insurance companies.
Each bancassurance agent can associate with a maximum of three insurance companies, subject to approval from the Insurance Development and Regulatory Authority (IDRA) and Bangladesh Bank. The initiative aims to boost the country’s insurance sector, with a focus on life insurance policies. Banks acting as corporate agents will receive a 15% commission on group insurance business, benefiting both banks and insurance companies. The move is expected to enhance insurance product sales through broader penetration and increased revenue.
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