Welcome to our Presentation

We are… Group No: 09

Name Id No: Al-Amin Khandakar 20-019Pantho Sarker 20-033Shahriar Md. Lukman 20-047Gourav Roy 20-059Md. Gulam Kibria 20-075

Group Figures

We are Presenting on…Comparative Insurance Industries Overview between

USA and Bangladesh

Now you are with…

Gourav Roy

Id No: 20-059

Impacts on capital Market

Impacts of Monetary Policy

on Inflation

Comparative Analysis on Financial

Performance and Condition between US and

Bangladesh Insurance Industries

Brief Introduction to Bangladesh

Insurance Industries

Brief Introduction to US Insurance

Industries

A Justified and Brief

Recommendation

Challenges to Establish a sound Monetary Policy

The End

Topics to be Covered…

Introduction to

Insurance Business

Functional Definition

ContractualDefinition

Insurance is a device of protection against Risk and inevitable contingencies

Insurance is a device of providing financial compensation on loss

Insurance is a contract on indemnifying on occurrence of losses

General Definition

Insurance

Definition of Insurance from Different Angles

History and Development of Insurance Business Chart to show the development stage by stage

Marine

Fire

Life

Accident

“Started journey in 1868 officially

The accident policy is much updated to cover excepted policies by previous ones

Stage 1 Stage 2 Stage 3 Stage 4

TIMELINE

Started journey in12th and 13th century

Started journey officially after Life Insurance Act 1774

Loss Specific(Most

Updated)

S tage5

What are the Major Characteristics of Insurance?

Premium

Characteristics of Insurance

Social Device and Legality

Risk sharing A Contract

Law of Large Number

Major Natures

The Functions of Insurance Industries

ProvidingCertainty

ProvidingProtection

Risk Sharing

Prevention of loss

Provides capital

Improves efficiency

Economic Progress

Secondary Functions

PrimaryFunctions

Functions

The Theoretical Classification of Insurance IndustriesClassification of Insurance

Based on nature

Life Insurance

Fire insurance

Marine insurance

Social insurance

Miscellaneous insurance

Based on business point of view

Life insurance

General insurance

Based on risk point of view

Personal insurance

Property insurance

Liability insurance

Fidelity guarantee insurance

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Md. Gulam kibria ID: 20-047

Available Insurance Policies in USA and Bangladesh

Policies

Life Insurance Policy

Fire Insurance Policy

Marine Insurance Policy

Cyber Risk Insurance PolicyEngineering

Business Insurance Policy

Terrorism Insurance Policy

Health Insurance Policy

Environment Insurance

Policy

Aviation Insurance Policy

Importance of Insurance Industries in USA and Bangladesh

Increase safety and security

Generate financial resources

Life insurance industries encourage to savings

Promote economic growth

Spreading risk

Sources of collecting funds

Capital market role

Contribution to GDP

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Pantho Sarker ID: 20-033

Comparative Analysis of Households savings for Insurance Premiums in US and Bangladesh

Liquid money20%

Deposits in Banks47%

Provision and Pension Funds

6%

Insurance Funds or Pemiums

19%

Others savings8%

Constitution of Household Savings in Bangladesh

5%

30%

18%

33%

14%

The Household savings Trend in US

Liquid moneyDeposits in BanksProvision and Pension FundsInsurance Funds or PemiumsOthers savings

Analytical Result

• US people are more trending in buying more coverage

Comparative Analysis of Total Premium between the Insurance Industries of Bangladesh and US

The insurance industry in Bangladesh has developed from the very inception of its journey till now at a very good extent.

The Non Life insurance sector in Bangladesh is very dominant than that of LIP.

Analytical Result:

The insurance industries are developing and number of policyholders is increasing.

US insurance industries are much more in a grown stage than that of Bangladesh.

Comparative Analysis on Economic Contribution of Insurance Industries:(US’s Insurance Industries Vs Bangladesh’s Insurance Industries)

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0

0.1

0.2

0.3

0.4

Contribution to GDP

BD US20

03-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-150%5%10%15%20%25%

0.0%5.0%

10.0%15.0%20.0%

Growth of Contribution

BD US

Analytical Result• The insurance industries of Bangladesh

are making gradual and positive efforts over the past ten years

• The growth rate of contribution is reducing

Market Share Capture of Self region’s & World’s Total Premium(US’s Insurance Industries Vs Bangladesh’s Insurance Industries)

2012 2013 2014 20150%50%

100%

9% 12% 15% 19%65% 66% 68% 70%

Market Share Capture of Self Region’s Total

Premium

Average Percentage of People Buying Coverage in BangladeshAverage Percentage of People Buying Coverage in US

Analytical

Result

• The US insurance industries have less growth in comparison to that of Bangladesh

• But the US insurance industries are three times stronger than that of Bangladesh with relevance to market share capture.

 

Particulars

 The Insurance Industries

of Bangladesh 

The Insurance Industries of US

Direct premiumsWritten ($Mn)

Direct premiumsWritten( In Mn $)

Nonlife premiums (1) 2035 30525Life premiums 881 13215Total premiums 2916 43740Percent of total worldpremiums 0.02% 27.13%

2916

43740

Chart Title

Tota

l Pr

emiu

ms

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Shahriar Md. Lukman ID: 20-047

SWOT Analysis: Theoretical Overview

SWOT Analysis

Definition

• Method of identifying strengths, weaknesses, opportunities and threats

Origin

• Theory was provided by Albert S Humphrey

Purpose

• To identify the positive and negative influencing factors inside and outside of a company or organization

Elements of SWOT Analys

is

• Strengths

• Weaknesses

• Opportunities

• Threats

Strengths

• New business’s individual insurance;

• Micro insurance;

• Increased population;

• Emerging middle income groups;

Weaknesses

• Poor financial position of the insurance companies;

• Higher cost of business;

• Centralization;

• Problem of planning and administration;

• Too much complexity;

• Licensing difficulties;

• Traditional insurance act;

• Lack of qualified officials;

• Traditional method;

• Inadequate training;

• Lack of information technology;

• Insufficient service;

• Undue promotion;

• Low attractive offerings;

• The discrepancy between customer expectations and employees’ perceptions;

• Ignorance about claim settlement procedure;

• Absence of business ethics;

Opportunities

• Development of new policy;

• Higher GDP;

• Scope in non-traditional sector;

• Scope of investment;

• Service diversification;

• Agriculture sector;

• Business sector;

• Education sector;

Threats

• Less public awareness;

• Low skilled workers;

• Illiteracy;• Poor

economic conditions;

• Low Savings;

• Political instability;

• Lack of exposure;

• Inadequate Government Support;

• Lack of supervision from the government;

• Lack of motivation program towards public;

SWOT Analysis: Perspective of Bangladesh Insurance Industry

Comparative SWOT Analysis Scenario between Bangladesh Insurance Industry and USA Insurance

Industry: Elements of SWOT

Insurance Industry Scenario Position Bangladesh Perspective USA Perspective

 

Strengths

1. New business’s individual insurance;2. Micro insurance;3. Increased population;4. Emerging middle income groups; 

1. Higher per capita income;2. Developed technology;3. Huge demand;4. Maintaining network both in urban and rural areas;5. Maintaining customer satisfaction;6. Favorable political environment;

 

USA is in better position

Weaknesses

1. Poor financial position of the insurance companies;2. Higher cost of business;3. Centralization;4. Problem of planning and administration;5. Too much complexity;6. Traditional insurance act;7. Lack of qualified officials;8. Traditional method;9. Lack of information technology;10. Insufficient service;11. Undue promotion;12. Low attractive offerings;13. Ignorance about claim settlement procedure;14. Absence of business ethics;

1. Insurance frauds;2. Low investment compared to other industries;3. Dominance of entrenched players;

 

 

 

Bangladesh is in worse situation

 Elements of SWOT

Insurance Industry Scenario Position Bangladesh Perspective USA Perspective

Opportunities

1. Development of new policy;2. Higher GDP;3. Scope in non-traditional sector;4. Scope of investment;5. Service diversification;6. Agriculture sector;7. Business sector;8. Education sector;

1. Development of new polices;2. Strong future growth;3. Increase in the number of users;4. Service diversification;5. Rising of 'middle class', and an elite group of extremely ‘wealthy Americans’;

Both countries have great potential to develop insurance industry.

 

Threats

1. Less public awareness;2. Low skilled workers;3. Illiteracy;4. Poor economic conditions;5. Low Savings;6. Political instability;7. Lack of exposure;8. Inadequate Government Support;9. Lack of supervision from the government;10. Lack of motivation program towards public;

1. US recession and weakening of financial market;2. Mounting insurance fraud;3. Increased competition from banks;4. Legal framework and bureaucracy;

 

Bangladesh is in worse situation

Comparative SWOT Analysis Scenario between Bangladesh Insurance Industry and USA Insurance

Industry:

Now you are with…

Al- amin khandakar

Id No: 20-019

Real Cases: Bangladesh Perspective

Insurer Company: 

1)Shadharan Bima Corporation.

2) Peoples Insurance Co. Limited  3)Green Delta Insurance Co

Insured Company: Sigma Sea Fort. Policy type: Fire Policy covers:

Accident caused by fire

Peril occurred: 1)Defective fridge 

& blast of that2)

Leakage in the high pressure pump and spreading out

Policy Breach: By two false

causes

Decision: No payment of loss because of the absence of principle of ‘Utmost good faith’.

Real Cases: USA Perspective

Zurich American Insurance

Company Vs Sony

Corporation of America

Policy type: Cyber risk insurance

Policy covers: publication of material that

violates a person’s right of privacy.

Subject of claim: Sony’s system was hacked and Millions of Sony customers’

personal information was compromised. Claim of loss:

Zurich American Insurance Company sued against Sony corporation in New

York.

Decision: No coverage as Sony’s system was hacked and there is no publication by policyholders.

Recommendation for the development of insurance industry in Bangladesh

Recommendations

Increasing credit

marginDecentraliz

ing insurance to rural areas

Arranging seminars, workshops

etc

Increasing online facility

Offering attractive insurance policies

Updating traditional insurance

act

Practicing business

ethics

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