A powerful tool for inclusion, risk mitigation, and resilience

Sheikh Mohammad Maroof
Managing Director and CEO, Dhaka Bank 

The Daily Star (TDS): What is the rationale behind your bank's interest in entering the bancassurance sector alongside its existing financial services?

Sheikh Mohammad Maroof (SMM): Dhaka Bank views bancassurance as a transformative extension of our financial services that will enhance profitability, deepen customer engagement, and align us with the future of inclusive financial ecosystems. The rationale is grounded in three core dimensions:

Strategic diversification: In a competitive and margin-sensitive banking environment, bancassurance allows us to unlock new income streams by monetising our large customer base through insurance partnerships.

Financial inclusion: Bancassurance empowers us to address critical gaps in insurance access, particularly for retail, SME, and rural segments, who have historically been under-protected.

Alignment with national goals: As Bangladesh pursues broader socio-economic advancement, improved insurance penetration complements sustainable development, health security, and financial resilience.

Through bancassurance, we aim not only to expand our service portfolio but also to support national priorities in risk protection and long-term financial planning.

TDS: What types of insurance products do you plan to offer through bancassurance partnerships?

SMM: Dhaka Bank plans to offer a broad spectrum of both life and non-life insurance products, structured around the needs of individuals, SMEs, and rural clients. These include:

Life Insurance: Term life (for loan/mortgage protection), endowment and whole life (for savings and future planning), and credit life (linked to loans).

Health Insurance: Critical illness coverage, hospitalisation benefits, and supplemental health plans.

Property & Casualty (P&C): Home and auto insurance, tied to mortgages and vehicle financing.

Microinsurance: Simplified, affordable plans for low-income populations (e.g., crop, livestock, or loan-linked coverage).

Travel Insurance: For short-term trips, integrated with credit card and booking services.

We will integrate these products seamlessly with banking solutions—for example, life insurance with mortgages or auto insurance with car loans—enhancing relevance and ease of adoption. Personalisation using data analytics and a digital-first customer journey will be at the core of our approach.

A dedicated Bancassurance team has already been formed, combining expertise from both the banking and insurance sectors to ensure strategic rollout, customer service excellence, and operational compliance.

To ensure that customers fully understand product terms, conditions, and exclusions, we are adopting a multi-layered approach:

Clear communication: Pre-sale disclosures in plain language, visual summaries of benefits, exclusions, and pricing.

Staff training: A strong focus on ethical selling and customer-first advisory.

Customer education campaigns: In-branch, digital, and community-based initiatives to promote insurance literacy.

Ongoing support: Dedicated helpdesks and after-sales follow-up to address customer concerns.

TDS: What systems or processes will be implemented to handle insurance-related complaints? How will you ensure compliance with the regulatory frameworks of both Bangladesh Bank and the Insurance Development and Regulatory Authority (IDRA)?

SMM: We are implementing a robust, tech-enabled complaints management system to handle insurance-related grievances. Key components include:

A clearly defined bancassurance complaints policy.

A centralised, digital complaints handling platform.

Multiple channels for complaint submission: call centre, email, website, mobile app, and in-branch.

A trained, dedicated complaints resolution team, aiming for resolution within 48 to 72 hours.

On the compliance front, we fully recognise the dual oversight by Bangladesh Bank and IDRA. We are establishing a structured and transparent compliance management framework that integrates regulatory governance, robust internal control mechanisms, continuous staff training, periodic audits, and the digital tracking of compliance KPIs.

TDS: How do you view the future of bancassurance in Bangladesh, and what role do you foresee your bank playing in its development?

SMM: The future of bancassurance in Bangladesh is promising and transformative. With insurance penetration below 1% of GDP and over 170 million mobile subscribers, there is enormous scope for tech-enabled, customer-centric insurance distribution. As financial literacy grows and consumers seek bundled, convenient financial solutions, bancassurance is poised to become a cornerstone of retail financial services.

Key trends shaping the future include:

Increased demand for health and life protection post-COVID.

Growth of microinsurance for rural and underserved populations.

Rising need for insurance in trade, logistics, and SME sectors.

Dhaka Bank envisions playing a pioneering role in this evolution. We aim to:

Partner with reputable life and general insurers.

Expand insurance offerings across our digital and physical channels.

Leverage our nationwide footprint for inclusive distribution.

Bundle microinsurance with savings and credit for the unbanked.

We do not see bancassurance as merely an additional revenue line. We see it as a powerful tool for financial inclusion, risk mitigation, and national resilience.

Dhaka Bank is committed to shaping the bancassurance ecosystem in Bangladesh—as a distributor, educator, innovator, and enabler of responsible insurance access for all.