Impact and Prospects of Bancassurance in the Socio-Economic Landscape of Bangladesh
Author (s)
Mohammad Rasel, ACS
Abstract
Bancassurance, the distribution of insurance products through banking channels, holds considerable promise for improving financial inclusion and promoting socio-economic growth in Bangladesh. This research investigates its current impact and potential using a mixed-methods approach, incorporating quantitative data from major banks and insurance firms along with qualitative insights from interviews with industry experts. The study assesses bancassurance’s role in increasing insurance penetration, highlights regulatory and operational challenges, and identifies avenues for growth. Findings show that bancassurance has moderately boosted insurance coverage, with policies sold through banks accounting for 15% of total insurance sales by 2023. However, penetration in rural areas remains limited, hindered by regulatory uncertainties, low consumer awareness, and operational inefficiencies. Nonetheless, growth opportunities exist, particularly through digital platforms and microinsurance products tailored to underserved populations. The research concludes that bancassurance can significantly enhance financial inclusion and strengthen economic resilience, particularly for rural and low-income communities, provided it is supported by regulatory reforms, heightened public awareness, and improved technological integration. Key recommendations include streamlining regulatory frameworks, enhancing capacity within banks and insurance companies, and leveraging mobile and online banking platforms to expand bancassurance’s reach, especially in rural regions. Addressing these challenges could enable bancassurance to play a crucial role in advancing Bangladesh’s financial sector and contributing to its broader socio-economic development.
Key words: Bancassurance, Financial inclusion, Socio-economic impact, Bangladesh, Insurance services, Banking sector, Regulatory challenges.
| Title: | Impact and Prospects of Bancassurance in the Socio-Economic Landscape of Bangladesh |
|---|---|
| Author: |
Mohammad Rasel |
| Journal Name: | Journal of Scientific Reports |
| Website: | https://ijsab.com/jsr |
| Publisher | IJSAB-International |
| DOI: | https://doi.org/10.58970/JSR.1049 |
| Media: | Online |
| Volume: | 7 |
| Issue: | 1 |
| Acceptance Date: | 06/10/2024 |
| Date of Publication: | 08/10/2024 |
| PDF URL: | https://ijsab.com/wp-content/uploads/1049.pdf |
| Free download: | Available |
| Page: | 159-182 |
| First Page: | 159 |
| Last Page: | 182 |
| Paper Type: | Research Paper |
| Current Status: | Published |
Cite This Article:
Rasel, M. (2024). Impact and Prospects of Bancassurance in the Socio-Economic Landscape of Bangladesh, Journal of Scientific Reports, 7(1), 159-182. DOI: https://doi.org/10.58970/JSR.1049
About Author (s)
Mohammad Rasel, ACS, Principal Officer, Company Affairs Department, Janata Bank PLC. Head Office, Dhaka, Bangladesh. ORCID: https://orcid.org/0009-0005-6785-3942
DOI: https://doi.org/10.58970/JSR.1049