Bangladesh Motor Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Key Highlights

• The Bangladesh Motor Insurance Market is estimated to grow at a CAGR of approximately 3% during the forecast period.
• In 2017, motor insurance gross premium was increased by 4.8% amounted to 361.63 BDT Crore. However, there was a drop in the growth rate of motor business compared to 4.80% (5.10% in 2016) growth rate recorded in 2016 because of the lack of supervision from a different agency. Motor sub-class recorded higher retention and in 2017 the rate was 94.36% of the gross premium Still motor insurance has not gained popularity because of unethical practice in commission payment, absence of modern demand-based insurance benefits plans and delaying process in claim settlement. Authority is trying to address the premium structure of motor insurance and to stop unethical business in this sector. Authority has already approved the reviewed various tariff rate in non-life business for increasing the insurance policy.

Key Market Trends

Increase in number of Motor Insurance policy:

Motor insurance business accounted for the largest number of policies from a single sub-class of general insurance business in the year 2017 and represented 67.21% of total policies (65.29 % in 2016) in the year 2017. The highest numbers of motor insurance policies were issued because the majority of those were third party insurance indicating that people tend to look for a minimum level of protection for a low premium to fulfil only the legal requirement.

Increase in GDP(Gross domestic product) Per Capita Income:

GDP per capita is a very important indicator of the economic strength of a country and a positive change is an indicator of economic growth. The per capita income of the country has increased in recent years and expected to continue. Rapid rises in GDP per capita usually indicate a higher level of development, causing many aspects of people's lives to increase.

Competitive Landscape

The report covers the major players operating in the Bangladesh Motor Insurance Market. The market is Fragmented, the market is expected to grow during the forecast period due to the increase in year on year motor insurance policy or contracts and many other factors are driving the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support