Delta Life Insurance Company Limited Bangladesh

Publication Date: Mar 2001
Published by: World Bank
Document Type: Presentation

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A microinsurance success story from Bangladesh

This presentation provides an overview of the microinsurance sector in Bangladesh and discusses:

• The players in the life insurance sector;
• The microfinance programs offered by the commercial life insurance companies;
• The market penetration of insurance which is less than 1%;
• The activities of Delta Life Insurance Company Limited in microinsurance.

• Vision, dedication and able leadership;
• Staff commitment;
• Core competence within the company;
• Uncomplicated and easy to understand products specially designed for the poor;
• Simple procedures;
• Large sales force and branch network.

• High ratio of lapsed policies reduced by staff training and strict disciplinary measures.
• High ratio of microcredit defaults reduced by suitable changes in waiting period and lending criteria.
• High cost and low return situation improved through reduction in overheads and increase of profit margins.
• High field level staff turnover checked through positive change in human resource management.
• Defalcation by field staff checked through steps such as:
  • Strict vigilance and monitoring;
  • Decentralization of records.

Finally, the presentation reaffirms Delta Life's commitment to the poor and relates how insurance brought about a positive change in the lives and coping strategies of poor clients by providing them with an effective risk-management measure.