Bangladesh Motor Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR (2024 - 2029) | > 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Bangladesh Motor Insurance Market Analysis
The Bangladesh Motor Insurance Market is expected to register a CAGR of greater than 5% during the forecast period.
The Bangladesh Motor Insurance Market is positioned for growth in the forecast period. Operating under a tariff-based system, motor insurance in Bangladesh falls under the oversight of the central rating committee of the Insurance Development and Regulatory Authority (IDRA), ensuring regulatory control within the market. This committee establishes premium rates and terms for different types of motor insurance, fostering a regulated and organized market structure.
Market drivers include the IDRA's review of tariff rates on non-life businesses, aimed at enhancing insurance policies and addressing unethical practices. Opportunities lie in aligning insurance offerings with evolving consumer preferences, leveraging technological advancements for enhanced services, and fostering innovation in coverage options. The market's adaptability to changing economic dynamics and regulatory initiatives positions it for sustainable growth in the coming years.
Bangladesh Motor Insurance Market Trends
Increase in Motor Vehicles Registration Driving the Market
The motor insurance business in Bangladesh accounts for the largest number of policies from a single sub-class of general insurance business over the years and represented around 65% of total policies last year. Most of the listed non-life insurance companies in Bangladesh posted lower profits during the second half of last year. For the industry, a big blow came from a sharp fall in automobile insurance as third-party insurance become largely non-existent in the country with third-party insurance made non-mandatory under the existing Road Transport Act 2018.
A rise in motor vehicle registrations often indicates economic growth and prosperity. It suggests increased consumer confidence, higher disposable incomes, and greater spending on durable goods like cars. Additionally, the automotive industry plays a significant role in driving economic activity, including manufacturing, sales, services, and related sectors. A surge in motor vehicle registrations may strain existing transportation infrastructure, leading to congestion, longer commute times, and increased wear and tear on roads. This can highlight the need for infrastructure upgrades, such as road expansions, public transportation improvements, and investments in smart mobility solutions.
Rising Technology based Insurance product driving Motor Insurance
Usage-based insurance (UBI), which is also referred to as pay-per-mile, pay-as-you-drive, or pay-as-you-go, is a type of auto insurance, in which the insurer can measure how far a vehicle is driven, where it's driven, and how it's driven. UBI is generally powered by telematics technology that is pre-installed in a vehicle's network or can be used through a plug-in device/mobile application. Telematics devices, when installed in vehicles, gather real-time data on driving behavior, encompassing factors like speed, acceleration, braking, and mileage.
Insurers utilize this data to determine premiums based on individual driving habits. This approach rewards safe drivers with lower rates, fostering responsible behavior.
Usage-based insurance (UBI) not only promotes safer driving practices and lowers accident rates but also allows insurers to align premiums more accurately with the actual risk. This alignment leads to improved pricing accuracy and enhanced profitability. With the advent of connected car technologies, vehicles can now communicate with external systems, such as GPS navigation, roadside assistance, and emergency services. Insurers leverage this connectivity to provide value-added services like stolen vehicle recovery, remote diagnostics, and predictive maintenance alerts.
Bangladesh Motor Insurance Industry Overview
The report covers the major players operating in the Bangladesh Motor Insurance Market. The majority of the market (More than 50%) is contributed by the top 10 players, the market is expected to grow during the forecast period due to the increase in year-on-year motor insurance policies or contracts and many other factors are driving the market. With the presence of multiple players holding a significant share, the market has observed a competitive environment.
Bangladesh Motor Insurance Market Leaders
EASTERN INSURANCE COMPANY LTD
RUPALI INSURANCE COMPANY LTD.
PHOENIX INSURANCE COMPANY LIMITED
PEOPLES INSURANCE COMPANY LIMITED
ASIA INSURANCE LIMITED
*Disclaimer: Major Players sorted in no particular order
Bangladesh Motor Insurance Market News
- In December 2023, To enhance financial services, BRAC Bank and Green Delta Insurance Company have inked a bancassurance agreement that will allow BRAC Bank clients to buy a variety of non-life insurance products including motor insurance from Green Delta Insurance directly through the bank.
- 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.
Bangladesh Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rise in sales of motor vehicles driving motor insurance market
4.2.2 Innovative products in motor vehicles with differentiated insurance price
4.3 Market Restraints
4.3.1 Rising economic fluctuation and revenue of Insurance Industry Post Covid
4.3.2 Increasing rate of Inflation in Bangladesh
4.4 Market Opportunities
4.4.1 Rising fintech will be expanding motor vehicle insurance market in Bangladesh
4.4.2 Rise in Bangladesh GDP per capita will be driving sales of motor vehicles
4.5 Industry Attractiveness - Porters' Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights into Technological Advancement in the Market
4.7 Insights into Regulatory Landscape Impacting the Market
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Product type
5.1.1 Third-Party
5.1.2 Comprehensive
5.1.3 Others
5.2 By Distribution channel
5.2.1 Brokers
5.2.2 Agency
5.2.3 Banks
5.2.4 Others
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Eastern Insurance Company Ltd
6.2.2 Rupali Insurance Company Ltd.
6.2.3 Phonix Insurance Company Ltd
6.2.4 Peoples Insurance Company Limited
6.2.5 Asia Insurance Limited
6.2.6 Sadharan Bima Corporation
6.2.7 Bangladesh National Insurance Company Limited
6.2.8 Pragati Insurance Limited
6.2.9 Eastland Insurance Co. Ltd.
6.2.10 Provati Insurance Company Limited*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Bangladesh Motor Insurance Industry Segmentation
A motor insurance policy is a mandatory policy issued by an insurance company as part of the prevention of public liability to protect the general public from any accident that might take place on the road.
Bangladesh's motor insurance market is segmented by insurance type and by distribution channel. By insurance type, the market is sub-segmented into third-party, comprehensive, and others. By distribution channel, the market is sub-segmented into agencies, banks, brokers, and others. The report offers market size and forecasts for the Bangladesh motor insurance market in value (USD) for all the above segments.
| By Product type | |
| Third-Party | |
| Comprehensive | |
| Others |
| By Distribution channel | |
| Brokers | |
| Agency | |
| Banks | |
| Others |
Bangladesh Motor Insurance Market Research FAQs
What is the current Bangladesh Motor Insurance Market size?
The Bangladesh Motor Insurance Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Bangladesh Motor Insurance Market?
EASTERN INSURANCE COMPANY LTD, RUPALI INSURANCE COMPANY LTD., PHOENIX INSURANCE COMPANY LIMITED, PEOPLES INSURANCE COMPANY LIMITED and ASIA INSURANCE LIMITED are the major companies operating in the Bangladesh Motor Insurance Market.
What years does this Bangladesh Motor Insurance Market cover?
The report covers the Bangladesh Motor Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Bangladesh Motor Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Motor Insurance in Bangladesh Industry Report
Statistics for the 2024 Motor Insurance in Bangladesh market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Motor Insurance in Bangladesh analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
