Uncertainty hit life insurance in 2024, non-life grew

Bangladesh's life insurance sector saw a marginal decline in premium income in 2024 as political instability and economic uncertainty eroded policyholder confidence, while non-life insurers posted modest growth, according to data released recently by the Bangladesh Insurance Association (BIA).

Life insurance companies collected Tk 11,389 crore in premiums last year, down 1.05 percent from Tk 11,510 crore in 2023, reported the BIA, an organisation representing insurance company owners and CEOs.

Data presented at the BIA's annual meeting showed that MetLife Bangladesh ranked first in premium income among the country's 36 life insurers in 2024. The US-based company, which has operated in Bangladesh since 1955, posted premiums of Tk 3,310 crore.

Adeeba Rahman, first vice-president of the BIA and sponsor director of Delta Life Insurance, attributed the slowdown in life insurance business to political and economic disruptions.

"During the previous government's tenure, many field-level officials became politically involved and had absconded, which has disrupted field operations and reduced business activity in certain areas," Rahman told The Daily Star.

Restoring policyholder confidence and ensuring a stable operating environment will be critical for the sector's sustainable growth, she said, adding that delays in settling insurance claims continue to constrain market expansion.

She also pointed to regulatory concerns, noting that the insurance regulator has recently categorised companies as high-risk, medium-risk and strong performers, calling for urgent corrective measures.

In July 2025, the Insurance Development and Regulatory Authority (Idra) placed 32 companies in the "risk" category due to weak governance and fragile financial conditions. Of them, 15 life insurers were classified as "high risk" and considered "unviable," while 17 non-life insurers were categorised as "at risk."

The insurance sector's challenges unfolded against a turbulent political backdrop in 2024, when the Awami League-led government was ousted following a mass uprising in August.

The unrest was followed by a deterioration in law-and-order, business closures and the exposure of major financial scandals involving conglomerates linked to the previous government. Inflation also remained elevated throughout the year.

Despite the drop in premium income, the life insurance sector's life fund grew 4.12 percent to Tk 33,232 crore in 2024, while investments rose 2.48 percent to Tk 34,292 crore, BIA data showed. Total assets increased by 4.22 percent to Tk 46,004 crore.

Rahman said the rise in life funds and assets reflected lower claim outflows, a trend associated with the cyclical maturity of insurance portfolios.

In contrast, the non-life insurance sector maintained growth, with premium income rising 2.46 percent to Tk 4,339 crore in 2024 from Tk 4,235 crore a year earlier.

Quazi Sakhawat Hossain, vice-president of the BIA and sponsor director of Agrani Insurance Company, said continued investment activity, issuance of letters of credit and imports of essential goods helped sustain demand in the non-life segment.

While some areas, particularly marine and industrial insurance, experienced slowdowns, overall demand remained resilient due to the country's growing consumer base, he said.

Total assets in the non-life sector increased 2.29 percent to Tk 11,916 crore, although investments declined 2.74 percent to Tk 5,614 crore.

Nasir Uddin Ahmed, former president of the BIA and current vice chairman of Karnaphuli Insurance, said the size of Bangladesh's economy is growing steadily, and this is the main reason behind the increase in premium income in the non-life sector.

According to Idra, Bangladesh currently has 36 life insurance companies and 46 non-life insurers.