BRAC Bank launches bancassurance service

BRAC Bank today launched its bancassurance service, enabling customers to access insurance products directly through the bank.

The service covers both life and non-life insurance products, which will be available at all branches of the bank nationwide, the bank said in a press release.

There is a growing demand for insurance products alongside banking services, said Selim RF Hussain, managing director of BRAC Bank.

This collaboration between banks and insurance companies will extend convenient access to insurance products, enhancing trust and confidence, he said.

Such industry partnerships will boost insurance penetration, promote financial inclusion and provide financial security, Hussain said.

"In line with our commitment to customer-centricity, our valued customers can now confidently access insurance products through BRAC Bank. We are dedicated to continuously introducing new services to meet our customers' evolving needs."

Initially, BRAC Bank will offer insurance products from MetLife Bangladesh and Green Delta Insurance, with plans to partner with more insurance companies to expand customer options.

Ala Ahmad, chief executive officer of MetLife Bangladesh, said: "Our partnership with BRAC Bank, one of the leading and most trusted financial institutions in the country, demonstrates our vision to expand the reach of insurance for the people of Bangladesh."

"I am delighted that through this significant collaboration, millions more customers can now confidently incorporate MetLife's world-class insurance protection into their financial planning," he said.

Mohammad Jainul Bari, chairman of the Insurance Development and Regulatory Authority, attended the launching ceremony of BRAC Bank's bancassurance services as the chief guest.

On December 11, the central bank issued a circular allowing banks to sell insurance products on behalf of insurance companies through their extensive network.

For Bangladesh, bancassurance might be new, though it appears to have begun in France in the 1970s, according to Investopedia.

Since then, it has been embraced by most countries, particularly those in the Asia-Pacific region.