Making insurance simple and digital

M. J. Azim, Managing Director & CEO Pragati Life Insurance PLC.

Pragati Life Insurance PLC ensures absolute dedication to policyholder satisfaction. Through prompt services, innovation, and strict information security, the company is building a foundation of transparency and integrity. M. J. Azim, Managing Director & CEO, shares insights on how they are turning this vision into reality.

The Daily Star (TDS): What percentage of people in Bangladesh currently have life insurance?

M. J. Azim (MJA): As per the most recent data available from the Insurance Development and Regulatory Authority (IDRA) and industry-wide sources, insurance penetration is only around 0.5%, which is low. According to published reports, fewer than one in every 17 people in Bangladesh holds a life insurance policy. Given Bangladesh's population of approximately 170 million, this suggests that only around 6–7 million people, or roughly 4–5% of the population, may have a life insurance policy in any form.

TDS: Has this number gone up compared to ten years ago? Can you share actual figures?

MJA: According to industry data, the number of people covered by life insurance in Bangladesh has not grown as much as expected over the past decade. Reports from IDRA and national newspapers show that life-insurance penetration has actually declined, falling from about 0.94% of GDP in 2010 to roughly 0.46% in recent years. At the same time, the total number of active life-insurance policies dropped from around 11.2 million in 2009 to about 6.7 million by 2025, mainly because of high policy lapsation.

TDS: How has your product lineup changed over the past ten years?

MJA: Compared to a decade ago, our product portfolio is not only bigger but also modern, inclusive and better aligned with evolving customer needs. Ten years ago, the industry,  including Pragati Life was mostly dependent on traditional endowment and whole-life policies. Today we offer more diversified plans: term insurance, savings-linked plans, health insurance, investment-oriented policies, children's education plans and riders such as critical illness benefits.

Now we focus heavily on customisation and flexibility, creating options for young generation and families. We have introduced digitally friendly products, which can be purchased, managed and renewed online.

TDS: What steps have you taken to make the claim process easier for customers?

MJA: To make the claim process faster and more customer-friendly, we prioritize rapid settlement for death claims to ensure immediate support for nominees. Additionally, we have accelerated the processing of survival and maturity claims to guarantee timely, hassle-free payments. A major step forward is the integration of EFTN (Electronic Fund Transfer Network), which allows claims to be processed within 12 hours and transferred directly to bank accounts for digital premium payers. Additionally, the company offers cashless hospitalisation for Group Health clients, settling bills directly with designated hospitals to eliminate upfront costs.

TDS: What are the most common reasons claims get delayed or rejected, and how are you fixing those issues?

MJA: There are typically three major reasons: incomplete documents, a mismatch between policy records and submitted information, and Potential fraud or suspicious circumstances.

To fix these issues, we educate customers at the time of purchase about the required documents, so families are not unprepared at claim time. We perform an early-stage document check and immediately notify the claimant if anything is missing. The fraud investigation process is streamlined to avoid unnecessary delays in genuine claims. These improvements have significantly boosted our claim settlement efficiency and customer satisfaction.

TDS: Are young people buying life insurance, or is it still mostly older clients?

MJA: We're witnessing a gradual but encouraging shift. Younger customers between 28 and 35 are becoming more interested in life insurance. They are becoming more financially aware. They understand the value of protection and savings. They prefer flexible, digital-friendly policies. However, middle-aged clients still represent a larger portion of our customer base because they have dependents, financial responsibilities and higher purchasing power.

TDS: How is digital technology helping you make insurance easier to buy or manage?

MJA: Digital technology is significantly simplifying how people in Bangladesh buy and manage insurance. Customers can now learn about products, calculate premiums, and even purchase policies online or through the website and mobile apps—without visiting a branch. E-KYC has reduced paperwork and allows quick, hassle-free onboarding.

Digital payment channels such as EFTN, mobile banking, and online gateways have made premium payments secure and convenient. These systems also enable insurers to transfer claim payments directly to customers' bank accounts, often within hours.