Page 45 - ICE BUSINESS TIMES January 2020

transactions for the poor with a small
balance and small transactions exceed
the benefits.
Consequently, the number of life
insurance holders in Bangladesh is
disappointingly low. According to Swiss
Re data, a leading global re-insurer,
Bangladesh’s overall insurance
penetration rate stood at a meagre 0.57%
in 2018, the lowest in the emerging
Asian communities. In the year 2017, the
penetration rate was 0.55%. The rate is
even lower among the impoverished
population, which is more concerning.
Insurance is a critically important tool for
not only reducing poverty but also for
helping those who have emerged from it
to manage their risk and avoid falling
back into the poverty trap. It also plays a
significant role in improving financial
inclusion.

O

Over the years, various entities have been
A Bangladesh. It includes both the
trying to improve financial inclusion in
government and NGOs who have taken
numerous initiatives to bring the
economically excluded under the
umbrella of formal economic activities.
According to the World Bank, half of However, a Life Insurance Company is not
Bangladeshis aged 15 or more remain the primary picture that flashes onto
without a bank or mobile money account one’s mind when talking about financial
of any kind. A significant number of inclusion. So, where does actually
women are financially excluded compared Guardian Life fit in when it comes to
to men, which points to lower participation Financial Inclusion?
in entrepreneurship amongst women in our Guardian Life Insurance Limited is the
country. There are mainly two underlying fastest-growing life insurance company
reasons behind the poor state of financial in the country; it is jointly sponsored by
inclusion; affordability and availability. Apex, BRAC and Square Group. They
One of the biggest obstacles of providing operate according to international
bank-based services to the most standards and has been recognized for
impoverished population is the cost high-quality service while maintaining
associated with traditional banking global compliance. GLIL aspires to work
methods. Responders of the World Bank’s diligently towards financial inclusion and
survey expressed their disappointment touch the lives of the underprivileged
over the cost of maintaining an account, population with the magical power of life
for them having a bank account is a luxury insurance as it provides both financial
which they cannot afford. Similarly, savings and family protection on the
availability is another issue. They also lives of this economic group. In line with
asserted, financial institutions being too the idea, GLIL is innovating numerous
far away is another reason for them not products that are playing a significant
having a bank account. Banks avoid role in improving financial inclusion of
operating branches in rural areas with Bangladesh, and they have set the
poor population citing viability issues. The standards of competence and reliability
amount of resources spent on conducting for others to follow.

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