Bancassurance system is going to be introduced in the country. In this system, the commercial banks
The Insurance Development and Regulatory Authority (IDRA) has prepared a draft policy for conducting these activities. Many banks are showing interest in this.
However, Bangladesh Bank is reviewing the legal aspects and risk issues of whether the banks can provide such services. It has been decided to take the opinion of two lawyers for this. will sell the products and services (insurance policy) of the insurance company.
Bancassurance is a French word, which means selling insurance products through banks. The first bancassurance concept was introduced in France and Spain in the 1960’s.banks and insurance
The business has expanded to many countries in Asia, sub-Saharan Africa and Latin America, such as Malaysia, popular in Asian countries. It has become the top medium especially in selling life insurance policies.
Banks act as an effective alternative channel to the bancassurance system, say people in the banking and insurance sectors.
It is learned that after receiving views from IDRA and the Ministry of Finance at a meeting of bankers held with the chief executives of commercial banks on December 19, 2016 under the chairmanship of the governor, IDRA has already formulated a draft policy in this regard.
The policy emphasizes on the expansion of the business of the insurance company and the control system of the IDRA in conducting this business. Meanwhile,
These are private sector Citibank, Eastern Bank, BRAC Bank, United Commercial Bank, Bank Asia, Mutual Trust Bank, Bangladesh Commerce Bank and ICB Islamic Bank and Standard Chartered Bank in the foreign sector.
In a letter to the central bank, the banks said they would sell insurance products to their customers on behalf of the insurance company under a partnership agreement executed between the bank and the insurance company in the bancassurance system.
This will increase the commission income of the bank and will benefit both the companies by expanding the business of the insurance company. In addition, banks will be able to provide one-stop financial services to their customers if they have the opportunity to conduct insurance marketing activities,
However, as directed in Section 7 (3) of the amended Banking Companies Act,
Life insurance in your absence will ensure a safe and comfortable life for your family.