PRIYAM PAUL

For decades, insurance in Bangladesh has been a tough sell—marked by limited access, low public trust, and a penetration rate that barely scratches the surface. But a quiet transformation is gaining momentum, not through traditional agents or state campaigns, but via a trusted institution embedded in everyday financial life: the banks.

With millions of customers, strong local presence, and long-standing credibility, banks are emerging as the insurance sector’s most effective ally. Through bancassurance, banks are now offering insurance directly—merging financial protection with accessibility and trust.

The shift is timely. Although Bangladesh has 82 licensed insurers, only 16.49 million people are covered. The insurance penetration rate remains just 0.46 percent—well below India and Pakistan—signalling both a challenge and an opportunity.