Insurance sector still lags behind in gaining public trust: Guardian Life CEO

Bangladesh's insurance sector continues to lag behind in gaining customer trust despite the country’s technological advancements, said Sheikh Rakibul Karim, Acting CEO of Guardian Life Insurance Limited.

Speaking at a workshop titled "Financial Discipline in the Insurance Sector", held on Wednesday at the Cadet College Club in Purbachal, he stressed the urgent need for reforms to boost customer confidence and ensure sustainable growth of the industry.

The event was attended by 35 members of the Insurance Reporters Forum (IRF), where industry leaders and stakeholders discussed current challenges and opportunities within the sector.

"To earn the trust of customers, the insurance industry must develop new, customer-centric products and modernise the claims settlement process through digital innovation," said Rakibul Karim.

He added that while Bangladesh has made notable progress in technology, the insurance sector remains outdated. “For example, when someone orders food online, they can track it from preparation to delivery. But in insurance, policyholders don’t have access to even basic information—like how much premium they’ve paid, when their policy matures, or alerts for unpaid premiums,” he said.

Karim underscored the importance of transparency and communication. “Customers must feel secure about the safety of their money. They should also be properly informed about policy maturity dates and renewal timelines,” he said.

He also noted that the irresponsible behaviour of a few insurers in delaying claim settlements has damaged the reputation of the entire sector. “To rebuild public confidence, companies must give top priority to timely claim payments. IDRA should also enhance its regulatory oversight,” he urged.

Highlighting Guardian Life’s position, he said the company is ahead in technological adoption. “Our founding sponsors include some of the country’s leading business groups. We’ve implemented 100 per cent cashless operations and settle claims within three to seven working days,” he claimed.

The workshop also shared key insights into the current state of the insurance market. In 2025, the country’s 36 life insurance companies collectively earned a premium income of Tk 55.54 billion. Of this, 14 companies accounted for 88 per cent of the market share. The top 10 companies individually earned over Tk 1.0 billion, while the remaining 21 companies contributed just 12 per cent of the total premium income.

According to the latest figures from the Insurance Development and Regulatory Authority (IDRA), Bangladesh currently has 82 insurance companies—36 in the life insurance category and 46 in general insurance.

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