Making insurance a core component of personal financial planning

Making Insurance 
a Core Component of Personal Financial Planning

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

Md Ashanur Rahman (MAR): Since the official launch of bancassurance in Bangladesh on March 3, 2024, the market has responded with a mix of optimism and caution from stakeholders, including the general public, banks, and insurance companies. Public reception has been largely positive, mainly due to the higher level of trust in banks compared to insurance companies.

City Bank has emerged as a leading player in the early stages of the bancassurance market. In 2024, the bank sold a total of 9,838 life insurance policies, comprising 1,104 standalone policies and 8,734 policies bundled with loans. In the first four months of 2025 alone, City Bank sold an additional 6,865 policies, bringing the total to 16,703 policies as of April 2025. This achievement has secured City Bank a dominant 56% market share in the growing bancassurance sector. The total premium collected stands at BDT 8.35 crore, with total coverage amounting to BDT 1,416 crore.

Despite this strong start, several challenges remain. These include persistent public skepticism toward insurance providers, limited awareness and understanding of insurance products, and the need for seamless technological integration between banks and insurers. At present, only Bangladesh Insurance Academy offers certification for bancassurance, making it challenging to meet growing training demands across expanding banks.

Nevertheless, the collaborative approach adopted by banks and insurance companies, supported by regulatory authorities, is expected to address these issues over time.

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

MAR: At City Bank, we have established strategic partnerships to deliver a wide range of insurance solutions under our bancassurance model, designed to meet the diverse financial protection needs of our customers. Our product portfolio currently includes the following:

Individual Life Insurance Products

Conventional Life Insurance: Offered in collaboration with Guardian Life Insurance, providing customers with robust protection solutions.

Shariah-Compliant Life Insurance: In partnership with Akij Takaful Life Insurance, we offer Islamic life insurance products tailored for customers seeking takaful-compliant options.

Insurance Bundled with Loan Products

SME-S Loan & Remittance Beneficiary Loan: These products include life insurance coverage of up to BDT 10 lakh, underwritten by Guardian Life Insurance and Delta Life Insurance.

Personal Loan: Our personal loan facility includes life insurance coverage of 200% of the loan amount, up to BDT 40 lakh, provided by Guardian Life Insurance.

Upcoming Offerings

By the end of this month, we will expand our portfolio to include motor insurance, offered through our partnership with Reliance Insurance Limited.

To ensure efficient and compliant service delivery, City Bank has formed a dedicated Bancassurance Team that oversees operations, regulatory alignment, and staff training. So far, 1,124 employees have received certification from the Bangladesh Insurance Academy. The team also conducts ongoing training on product features and ethical sales practices. We prioritise transparent communication—clearly explaining policy benefits, terms, and exclusions—because we believe an informed customer is an empowered one. This customer-first approach defines our Bancassurance strategy and commitment to financial inclusion.

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

MAR: City Bank has implemented a structured, transparent, and compliant process for managing insurance-related customer complaints, fully aligned with the guidelines of both Bangladesh Bank and the Insurance Development and Regulatory Authority (IDRA).

We have established a dedicated Complaint Management Cell responsible for:

Receiving complaints through various channels, including branches, call centres, and online platforms;

Providing customers with timely updates on the status of their complaints;

Coordinating with internal teams to investigate and resolve issues;

Communicating resolution outcomes to customers via phone and email.

Customers can lodge complaints at any City Bank branch, where staff promptly forward them to the Bancassurance Team for swift investigation and resolution. The team also ensures regulatory compliance by submitting reports to Bangladesh Bank and IDRA, and by monitoring adherence to all relevant rules, circulars, and obligations.

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

MAR: As the first licensed bank to operate in the bancassurance space in Bangladesh, City Bank recognises both its pioneering role and the vast potential of this channel. Since the official launch on March 3, 2024, we have aimed to integrate banking and insurance to offer holistic financial protection. Our long-term vision is to make insurance a core part of personal financial planning, driving financial inclusion, enhancing social protection, and increasing the insurance sector's contribution to the national economy.

Looking ahead, we are highly optimistic about bancassurance becoming a cornerstone of Bangladesh's financial ecosystem. Our approach will focus on:

Continuous product innovation;

Strong and responsible partnerships with insurers;

Transparent and empowering customer education.