Bangladesh:3 key factors drive insurance business

Building awareness, harnessing technology and focussing on customer interaction are three main actions which will drive the insurance market, says Mr Syed Hammadul Karim who is General Manager of MetLife Bangladesh.

Writing in The Daily Star, he says that life insurance penetration in Bangladesh is only 0.5%, which means that the vast majority of Bangladeshis are not accessing all the insurance options available to them. At the same time, it shows insurance services have significant room to grow.

Building awareness

Mr Karim says that insurance is not at the forefront of customers' minds for financial planning purposes in Bangladesh because there is a lack of awareness and understanding about insurance and its benefits.

“We also see that many customers face difficulty in differentiating between the features of banking and insurance products though these products serve very different purposes. Considering all of these factors, broader, customer friendly communications would certainly help potential customers more to reap the benefits of insurance,” he wrote.

Harnessing changing technology

Technology will continue to shape the way people interact with insurers and their products. Insurers need to adopt the mindset that technology is not always disruptive; rather it can also bring immense opportunities.

Mr Karim points out that insurers need to use technology to serve customers in the life insurance space better, to build trust and educate customers about how their needs can be met. There is a general perception that the settlement process of insurance claims can be cumbersome and lengthy which adds to the reluctance to buy insurance. Technology can play a vital role here—to make things better, easier and faster for customers.

Customer interactions

Mr Karim notes that insurers' interactions with customers have been infrequent as well as transactional in nature.

He said, “We interact with them when they first take out their policy, and even then, this transaction often conducted through an agent. We interact with them again when their family needs to claim the policy at which point, we deliver on our promises.”

There is a clear scope for improving on customer interaction in the insurance industry, he says. He added, “Our research shows that customer experience ranks just as highly as price and the products/services. So, there is an opportunity to focus on interacting with customers in a way that builds loyalty and trust. Which is why, insurers need to think of thoughtful ways of keeping in touch with customers to enhance their lives.”

Source: Asia Insurance Review

http://www.insurancealertss.com//Insurance/NominationForm/17527