Bancassurance as a cornerstone of financial well-being

Md. Shafquat Hossain
Deputy Managing Director and Head of Retail Banking Division, Mutual Trust Bank

The Daily Star (TDS): What has been your experience with bancassurance so far?

Md. Shafquat Hossain (MSH): I believe bancassurance will open a new horizon for the insurance industry in Bangladesh, as this collaborative arrangement will help insurers expand their coverage at an affordable cost. This will not happen overnight, but the steps in the right direction have been initiated, for which I would like to congratulate both Bangladesh Bank and the Insurance Development and Regulatory Authority (IDRA).

On the experience side, I would highlight the fact that this will require a lot of hard work from both the insurance companies and the banks, particularly in terms of imparting the necessary training to bank staff members to sell insurance products to the bank's customers. Mutual Trust Bank has a long-standing reputation for sustainability and reliability, which has allowed us to gradually build trust with our customers in this new avenue.

Through consistent communication, training, and customer engagement, we have been able to create awareness about the benefits of insurance as a financial planning tool.

TDS: What types of insurance (e.g., life, general) are currently offered through your bancassurance partnerships?

MSH: At Mutual Trust Bank, we currently offer both life and non-life insurance products through partnerships with leading insurers in Bangladesh. For life insurance, we have strategic collaborations with Guardian Life Insurance Ltd. and Pragati Life Insurance. In the non-life category, we work with Green Delta Insurance.

Our life insurance offerings include endowment plans and credit shield products. Endowment policies are designed to help customers accumulate savings over time while also providing financial protection in the event of death or permanent disability. These plans support long-term financial planning and encourage disciplined savings, while also offering tax benefits.

Credit shield insurance protects borrowers by covering outstanding loan liabilities with the bank in the event of death or permanent and total disability. This prevents financial hardship for dependents, shielding them from the burden of debt repayment. It also protects the bank by reducing default risk from such unforeseen events. In the non-life segment, we offer insurance solutions that cover health, motor vehicles, and travel.

We have established a dedicated Bancassurance Department. This team works in close coordination with branch-level officers and ensures that all staff members receive comprehensive training on product features, benefits, and exclusions.

To promote clarity and transparency, we provide regular refresher courses, internal guides, brochures, FAQs, and visual aids. Our goal is to ensure that customers are well-informed, enabling them to make confident and responsible insurance decisions that secure their future and promote financial resilience.

TDS: What is your process for handling insurance-related complaints, and how do you ensure compliance with Bangladesh Bank and IDRA guidelines?

MSH: Customer satisfaction is our top priority, and we follow a structured process to address insurance-related complaints. Our dedicated Bancassurance Department remains on standby to support both branches and customers with product clarifications, onboarding guidance, claims assistance, and post-sales queries. We emphasise resolving issues promptly at the branch level through trained relationship managers.

We also maintain strict compliance with the regulatory guidelines of Bangladesh Bank and the IDRA. Our Bancassurance Department closely collaborates with our insurance partners to regularly monitor operations, ensuring that all disclosures, documentation, and sales protocols strictly adhere to regulatory standards. Furthermore, we have implemented an escalation mechanism for swift resolution of complex cases.

TDS: What is your outlook on the future of bancassurance in Bangladesh?

MSH: The future of bancassurance in Bangladesh is promising. Although still in its early stages, it holds significant potential in a market like ours where insurance penetration remains relatively low. Banks play a pivotal role in bridging this gap, serving as trusted intermediaries between customers and insurers. In the coming years, the focus will need to be on raising awareness, educating customers, and building long-term credibility.

At Mutual Trust Bank, we recognise this responsibility and have taken proactive steps to contribute to this journey. We are one of the pioneers in launching a community engagement programme at the Gulshan Society Lake Park, which included free health check-ups. This initiative not only promoted wellness but also provided a valuable opportunity to educate the community and potential customers about the importance of insurance and financial protection. We plan to host a few more of these by the end of 2025.

With the regulators' increasing emphasis on financial inclusion and the Sustainable Development Goals (SDGs) 2030, bancassurance is positioned to become a vital instrument in ensuring financial security for the underserved and marginalised populations. We anticipate deeper collaborations between banks and insurers, an expansion of product offerings tailored to diverse customer needs, and a growing reliance on digital platforms to deliver seamless, accessible insurance solutions.