Report Overview

Bangladesh Motor Insurance Market – Industry Trends & Forecast Report, 2030

Bangladesh Motor Insurance Market size was estimated at USD 3.25 billion in 2023. During the forecast period between 2024 and 2029, the size of Bangladesh Motor Insurance Market is projected to grow at a CAGR of 3.25% reaching a value of USD 3.94 billion by 2030. Bangladesh Motor Insurance Market is flourishing due to the rapid growth of the country's automobile sector, increasing urbanization, and rising awareness of the importance of insurance coverage. Government regulations mandating motor insurance, coupled with a growing middle class and higher disposable incomes, contribute to the market's expansion. The surge in road traffic and the subsequent rise in accident rates further fuel demand for motor insurance. Technological advancements in insurance services and a competitive landscape also play pivotal roles in shaping the market, fostering innovation, and offering diverse coverage options to meet evolving consumer needs.

Motor Insurance – Overview

Motor insurance, also known as auto insurance, is a financial protection against financial losses resulting from accidents, theft, or other unforeseen events involving vehicles. It provides coverage for damages to the insured vehicle, third-party liabilities, and medical expenses. Policy terms vary, offering options like comprehensive coverage or liability-only. Premiums are determined by factors such as the driver's history, vehicle type, and coverage chosen. Mandatory in many jurisdictions, motor insurance ensures responsible and secure driving while mitigating financial risks associated with unforeseen events on the road.

Bangladesh Motor Insurance Market

Growth Drivers

Rising Middle Class and Increasing Disposable Income Fueling Demand for Motor Insurance Products

With a burgeoning middle class and growing disposable incomes in Bangladesh, the country’s Motor Insurance Market is experiencing a robust surge. As more individuals achieve financial stability, there is an increased inclination toward vehicle ownership, propelling the demand for comprehensive motor insurance coverage. The expanding consumer base drives market growth but also signifies a heightened awareness of the necessity for insurance, presenting significant opportunities for insurers to tap into the evolving landscape.

Challenges

Low Awareness about Motor Insurance

In the burgeoning Bangladesh Motor Insurance Market, a significant challenge emerges as low awareness persists among vehicle owners. The lack of awareness leaves individuals uninformed about the benefits of motor insurance and also exposes them to potential financial risks in case of accidents or unforeseen events. Stakeholders in the market face the pressing need to address the issue, promoting education and communication to enhance understanding and uptake of essential motor insurance coverage.

Impact of Escalating Geopolitical Tensions on Bangladesh Motor Insurance Market

As geopolitical tensions rise, the Bangladesh Motor Insurance Market faces increased challenges. Uncertainty surrounding global affairs amplifies economic risks, impacting consumer spending and insurance demand. Insurers may grapple with heightened volatility in financial markets, potentially affecting underwriting and claims management. Furthermore, geopolitical instability may lead to regulatory changes, influencing market dynamics. Stakeholders must navigate the complex landscape to ensure the resilience and stability of the motor insurance sector in Bangladesh.

Bangladesh Motor Insurance Market

Segmental Coverage

Bangladesh Motor Insurance Market – By Coverage

Based on coverage, Bangladesh Motor Insurance Market is divided into Liability Coverage, Collision Coverage, and Comprehensive Insurance segments. The comprehensive insurance coverage segment stands out as the largest, as it encompasses a wide range of coverage, including protection against theft, natural disasters, and damages not caused by collisions. Comprehensive insurance is often preferred by vehicle owners seeking extensive coverage beyond basic liability and collision options. The prominence of comprehensive insurance reflects the market's recognition of the need for comprehensive protection, making it a significant and popular choice among consumers in Bangladesh's Motor Insurance landscape.

Bangladesh Motor Insurance Market – By Distribution Channel

Based on distribution channel, Bangladesh Motor Insurance Market is divided into Insurance Agents/ Brokers, Direct Response, and Banks segments. The banks segment is the largest contributor to the Bangladesh Motor Insurance Market. The banking sector encompasses insurance products offered through banking channels, indicating a significant market share. With banks playing a prominent role in distributing motor insurance, the segment reflects the substantial influence of financial institutions in the insurance landscape. The insurance agents/brokers and direct response segments, while important, take a secondary position compared to the dominant presence of banks in the Bangladesh Motor Insurance Market.

Bangladesh Motor Insurance Market – By Vehicle Age

By vehicle age, Bangladesh Motor Insurance Market is split into New Vehicles and Old Vehicles segments. The new vehicles segment is a larger vehicle age segment in the Bangladesh Motor Insurance Market. The segment encompasses insurance coverage for recently purchased vehicles, reflecting the demand and growth in the automobile industry. As more individuals invest in new vehicles, the corresponding need for insurance coverage has contributed to the prominence of the market segment. The focus on insuring new vehicles suggests a dynamic market where consumers prioritize safeguarding their valuable assets, driving substantial activity and competition within the insurance sector for the specific segment.

Bangladesh Motor Insurance Market – By Application

By application, Bangladesh Motor Insurance Market is bifurcated into Commercial Vehicle and Personal Vehicle segments. The commercial vehicle segment is the largest in the Bangladesh Motor Insurance Market. The segment encompasses insurance coverage for various commercial vehicles, including trucks, buses, and other vehicles used for business purposes. The significant role that commercial vehicles play in the country's economic activities contributes to the prominence of the segment in the motor insurance market. As businesses rely heavily on vehicles for transportation and logistics, the demand for insurance coverage in the commercial vehicle segment surpasses that of the personal vehicle segment.

Competitive Landscape

Major players in the Bangladesh Motor Insurance Market include Sadharan Bima Corporation (SBC), MetLife Alico Insurance Company Limited, Eastern Insurance Company Limited, Rupali Insurance Company Limited, Phoenix Insurance Company Limited, Green Delta Insurance Company Limited, Eastland Insurance Company Limited, Prime Islami Life Insurance Limited, and Delta Life Insurance Company Limited. To enhance their market share and expand their reach, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In January 2022 - The sub-committee on motor insurance in Bangladesh developed guidelines on the inspection of vehicles and standard operating processes to be followed by vehicle owners in the event of a loss. Mapping high-exposure accident spots across the country and developing a standard matrix (score) to incorporate safety features for each make and model of vehicle are among the other activities tasked to the panel.

• In April 2023 - The Insurance Development and Regulatory Authority (IDRA) issued regulations, that would require non-life insurance companies to maintain a reserve of between 40% and 100% as a solvency margin, depending on the risks they cover.

Scope of Report

By Coverage

• Liability Coverage

• Collision Coverage

• Comprehensive Insurance

By Distribution Channel

• Insurance Agents/ Brokers

• Direct Response

• Banks

By Vehicle Age

• New Vehicles

• Old Vehicles

By Application

• Commercial Vehicles

• Personal Vehicles

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Bangladesh Motor Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing middle class and increasing disposable income
         2. Government initiatives to increase motor insurance penetration
         3. Increasing urbanization and traffic congestion
      2. Restraints
         1. Low awareness of motor insurance
         2. Perceived high cost of motor insurance
      3. Opportunities
         1. Development of micro-insurance products
         2. Partnership with non-traditional players
      4. Challenges
         1. Fraud is a major challenge for the Bangladeshi motor insurance industry
         2. Stringent regulations
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Bangladesh Motor Insurance Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Coverage
         1. Liability Coverage
         2. Collision Coverage
         3. Comprehensive Insurance
         4. Others
      2. By Distribution Channel
         1. Insurance Agents/ Brokers
         2. Direct Response
         3. Banks
         4. Others
      3. By Vehicle Age
         1. New Vehicles
         2. Old Vehicles
      4. By Application
         1. Commercial Vehicle
         2. Personal Vehicle
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Bangladesh Motor Insurance Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Escalating Geopolitical Tensions on Bangladesh Motor Insurance Market
7. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Sadharan Bima Corporation (SBC)
   2. MetLife Alico Insurance Company Limited
   3. Eastern Insurance Company Limited
   4. Rupali Insurance Company Limited
   5. Phoenix Insurance Company Limited
   6. Green Delta Insurance Company Limited
   7. Eastland Insurance Company Limited
   8. Prime Islami Life Insurance Limited
   9. Delta Life Insurance Company Limited
   10. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1    Bangladesh Motor Insurance Segmentation

Figure 2    Bangladesh Motor Insurance Market Value Chain Analysis

Figure 3    Company Market Share Analysis, 2023

Figure 4    Bangladesh Motor Insurance Market Size, By Value (USD Billion), 2019–2030

Figure 5    Bangladesh Motor Insurance Market Share, By Coverage, By Value, 2019–2030

Figure 6    Bangladesh Motor Insurance Market Share, By Distribution Channel, By Value, 2019–2030

Figure 7    Bangladesh Motor Insurance Market Share, By Vehicle Age, By Value, 2019–2030

Figure 8    Bangladesh Motor Insurance Market Share, By Application, By Value, 2019–2030

List of Tables

Table 1    Bangladesh Motor Insurance Market Size, By Value (USD Billion), 2019–2030

Table 2    Bangladesh Motor Insurance Market Size, By Coverage, By Value, 2019–2030

Table 3    Bangladesh Motor Insurance Market Size, By Distribution Channel, By Value, 2019–2030

Table 4    Bangladesh Motor Insurance Market Size, By Vehicle Age, By Value, 2019–2030

Table 5    Bangladesh Motor Insurance Market Size, By Application, By Value, 2019–2030

Table 6        Sadharan Bima Corporation (SBC) Company Overview

Table 7        Sadharan Bima Corporation (SBC) Financial Overview

Table 8        MetLife Alico Insurance Company Limited Company Overview

Table 9        MetLife Alico Insurance Company Limited Financial Overview

Table 10      Eastern Insurance Company Limited Company Overview

Table 11      Eastern Insurance Company Limited Financial Overview

Table 12      Rupali Insurance Company Limited Company Overview

Table 13      Rupali Insurance Company Limited Financial Overview

Table 14      Phoenix Insurance Company Limited Company Overview

Table 15      Phoenix Insurance Company Limited Financial Overview

Table 16      Green Delta Insurance Company Limited Company Overview

Table 17      Green Delta Insurance Company Limited Financial Overview

Table 18      Eastland Insurance Company Limited Company Overview

Table 19      Eastland Insurance Company Limited Financial Overview

Table 20      Prime Islami Life Insurance Limited Company Overview

Table 21      Prime Islami Life Insurance Limited Financial Overview

Table 22      Delta Life Insurance Company Limited Company Overview

Table 23      Delta Life Insurance Company Limited Financial Overview

Table 24      Other Prominent Players Company Overview

Table 25      Other Prominent Players Financial Overview