Bright spots in insurance claim settlement
Dhaka August 02, 2023
Bangladesh's life insurance sector has always struggled in claim settlement, but the sector still has some good companies who are bearing the torch for all with faster fund repayment and good corporate governance.
Some 35 life insurance companies are currently operating in the country where MetLife Bangladesh—only foreign insurer of the sector—stood tall by settling Tk 3,229 crore claims and maintaining a 96 percent claim settlement ratio in 2022.
Another seven companies settled claims over Tk 200 crore and maintained the claim settlement ratio to over 90 percent.
Of the seven, Delta Life Insurance repaid Tk 841 crore maintaining a claim settlement ratio of 93 percent.
Popular Life Insurance settled Tk 576 crore claims with 99.97 percent ratio.
Meghna Life, Pragati Life, and Guardian Life repaid claims of Tk 421 crore, Tk 313 crore, and Tk 297 crore respectively last year.
All the three companies' claim settlement ratio was above 98 percent.
MetLife could maintain a consistent and robust claim settlement ratio thanks to the company's strong focus on customer convenience, advanced technology and very organised financial and customer fund management process, said Ala Ahmad, CEO of MetLife Bangladesh.
Prime Islami Life and Sandhani Life Insurance repaid claims worth Tk 290 crore and Tk 211 crore respectively last year.
The willingness of the directors and management of Pragati Life made it possible for the company to settle claims of the policyholders as soon as the policies mature, said Jalalul Azim, managing director of the company.
The good claim settlement ratio positively impacted Pragati's reputation and boosted general public's confidence on the company, which will surely give a boost to the expansion of the business, he said.
Good investment ensures good return, Azim said. "Many companies do not do that."
Pragati Life's management made it sure that the investment is made on good securities so that the company gets lucrative returns, he added.
Apart from the top seven claim settlement companies, National Life Insurance repaid claims of Tk 1,042 crore, but its claim settlement ratio was 76 percent.
Fareast Islami Life Insurance paid Tk 970 crore, but it has a claim settlement ratio of 21 percent.
Published in The Daily Star on August 2, 2023
Bright spots in insurance claim settlement | The Daily Star