Unique Business Dream: Risk threat in Global Insurance business. HAZM Mahegir


Traditional businesses from British Raj and the East India Company, Insurance business have been derived more than 250 years ago. This business has a long history, some insurance companies began business operation, both life and general.
Insurance business in Bangladeshhave been increased for the duration of 1947-1971, when there were only 49 insurance companies operate their business both life and general insurance.
After Liberation war in 1971, The People’s Republic Government of Bangladesh nationalized the insurance industry along with the banks in 1972 by Presidential Order No. 95.

After a long run of this business in a healthy atmosphere, from the past decade this business has been facing many problems including trustworthlessness’ from the customers,not settlements of the claims or unnecessary delay in making payment of claimed amounts, moreover the verification orSurvey agent companies are made bound to obey the insurance companies’ guidance.

Bangladesh economy contains huge risk factors in everyday life, in every sector since the country often faces natural disasters like flood, cyclone, draught, hurricane, and so on. There are also other factors like political strikes, bankruptcy, unworthy financing from banks, and economic issues like inflation, high interest rate, tax policy, deregulation, etc. those sharpen the risks for the economy. Recently insurance market of Bangladesh has become large with unethical competition.

Insurance represents an important tool to reduce risks borne by individuals and businesses in modern business system’s prerequisite. It is nothing but a mechanism of spreading the risk of one to the shoulders of many; awritten legal contractual agreement with the concerned parties with services and protective measures from the various agents such as shipping lines, carriers, related ports, concerned the laws of the counties and many more.The primary objective of insurance companies is to protect individuals and corporations (policyholders) from adverse events related to any risk involvement including the acts of God.

American Family business insurance covers so much more than just a customer’s building or workspace. Insurance companies understand it takes many moving parts to keep business dream alive and thriving, hence provide the customized coverage and support they need to protect what matters most to the clients’ unique vision. Business may be small, but your dreams are anything but real one.An American Family business insurance policy combines property including loss of income, general liability and crime coverage’s into a simple package that’s customizable to unique business and industry. On the contrary, Insurance company in Bangladesh doesn’t able to provide such opportunities as an American company does.

To bring smooth business environment, the Parliament of Bangladesh on 3 March 2010 has passed two insurance laws in a bid to further strengthen the regulatory framework for the insurance industry. The new laws, came into effect on 18 March 2010, are Insurance Act 2010 and IDRA Act 2010.

Presenly77 insurance companies have been operating in the country having two categories: Life and Non-life deals with Business and Commerce. The companies are to be regulated under comprehensive laws and guidelines, and to be supervised by IDRA. The IDRA Act 2010 has paved the way for better regulation of the sector by reducing business risks, and by harmonizing local and international insurance laws for the Economy of Bangladesh. IDRA attempts to protect the interest of insurance policy holders, beneficiaries and ensuring stability of the insurance sector. Two state-owned insurers -SadharanBima Corporation (SBC) and JibanBima Corporation (JBC) are also regulated by IDRA.


The marine industry faces a host of emerging risks as change continues to sweep through the sector. A new report from Marsh has found that the industry is currently in a state of flux as changes come throughout the value chain, while marine insurance rates remain low.

The Changing Tide of Risk: Expert Perspectives on the Marine Industry contains a number of articles on a diverse range of subjects including disruptive technology, human capital and global trade. Marcus Baker, chairman of Marsh’s global marine practice, said that these emerging trends have forced the marine industry to re-examine basic assumptions that have driven traditional risk conventions. “The current turbulent and unprecedented environment in the marine industry has spawned a period of continuous change,” Baker said. “As a result, companies in this sector now need to look afresh at the emerging risks they are facing.”

The marine insurance sector remains challenging as surplus capital continues to impact the industry. “By general agreement, marine insurance rates are currently at levels that cannot be sustained over a long period, yet they show little sign of increasing,” the report states.
As emerging risks come to the fore, the report warns that it is not only ship operators that face challenges but also those along the supply chain. The report makes specific mention of the impact cyber risk could have on the marine industry as it remains a “looming concern” for both the marine and insurance industries. “Although many questions remain, what do appear certain is that cyber issues will stay at the forefront of the industry for the foreseeable future,” the report notes.

The Zurich Global Risks Report 2016 draws attention to ways that global risks could evolve and interact in the next decade. The year 2016 marks a forceful departure from past findings, as the risks about which the Report has been warning over the past decade are starting to manifest themselves in new, sometimes unexpected ways and harm people, institutions and economies. Warming climate is likely to raise this year’s temperature to 1° Celsius above the pre-industrial era, 60 million people, equivalent to the world’s 24th largest country and largest number in history, are forcibly displaced, and crimes in cyberspace costs the global economy an estimated US$445 billion, higher than many economies’ national incomes. In this context, the Report calls for action to build resilience – the “resilience imperative” – and identifies practical examples of how it could be done.

Under-Employed, Under-Inclusive and Under Threat: the World in 2017

  • Trends such as rising income inequality and societal polarization triggered political change in 2016 and could exacerbate global risks in 2017 if urgent action is not taken, according to the Global Risks Report 2017
  • Key drivers of risks can be arrested or reversed through building more inclusive societies, for which international cooperation and long-term thinking will be vital
  • Climate change ranks alongside income inequality and societal polarization as a top trend for 2017, with all five environmental risks featuring for the first time among the most likely and most impactful risks before the world.

London, United Kingdom, 11 January 2017 – Economic inequality, societal polarization and intensifying environmental dangers are the top three trends that will shape global developments over the next 10 years, the World Economic Forum’s Global Risks Report 2017 found. Collaborative action by world leaders will be urgently needed to avert further hardship and volatility in the coming decade.

In this year’s annual survey, some 750 experts assessed 30 global risks, as well as 13 underlying trends that could amplify them or alter the interconnections between them. Against a backdrop of mounting political disaffection and disruption across the world, three key findings emerged from the survey:

  • Patterns persist. Rising income and wealth disparity and increasing polarization of societies were ranked first and third, respectively, among the underlying trends that will determine global developments in the next ten years. Similarly, the most interconnected pairing of risks in this year’s survey is between high structural unemployment or underemployment and profound social instability.
  • The environment dominates the global risks landscape. Climate change was the number two underlying trend this year. And for the first time, all five environmental risks in the survey were ranked both high-risk and high-likelihood, with extreme weather events emerging as the single most prominent global risk.
  • Society is not keeping pace with technological change. Of the 12 emerging technologies examined in the report, experts found artificial intelligence and robotics to have the greatest potential benefits, but also the greatest potential negative effects and the greatest need for better governance.

While the world can point to significant progress in the area of climate change in 2016, with a number of countries, including the US and China, ratifying the Paris Agreement, political change in Europe and North America puts this progress at risk. It also highlights the difficulty that leaders will face to agree on a course of action at the international level to tackle the most pressing economic and societal risks.

“Urgent action is needed among leaders to identify ways to overcome political or ideological differences and work together to solve critical challenges. The momentum of 2016 towards addressing climate change shows this is possible, and offers hope that collective action at the international level aimed at resetting other risks could also be achieved,” said Margareta Drzeniek-Hanouz, Head of Global Competitiveness and Risks, World Economic Forum.

How to address the world’s most pressing risks will be the subject of discussions at the World Economic Forum Annual Meeting 2017, which convenes 17-20 January under the theme Responsive and Responsible Leadership.

Although 2016 will be remembered for dramatic political results that broke with consensus expectations, warning signs that a persistent cluster of societal and economic risks could spill over into real-world disruption have been reported in the Global Risks Report regularly during the past decade.

  • In 2006, Global Risks warned that theelimination of privacy reduces social cohesion – at the time, this was classified as a worst-case scenario, with a likelihood of below 1%.
  • In 2013, long before “post-truth” became the 2016 word of the year, Global Risks highlighted the rapid spread of misinformation, observing that trust was being eroded and that better incentives were needed to protect quality-control systems.

The complex transitions that the world is currently going through, from preparing for a low-carbon future and unprecedented technological change to adjusting to new global economic and geopolitical realities, places even greater emphasis on leaders to practice long-term thinking, investment and international cooperation.

“We live in disruptive times where technological progress also creates challenges. Without proper governance and re-skilling of workers, technology will eliminate jobs faster than it creates them. Governments can no longer provide historical levels of social protection and an anti-establishment narrative has gained traction, with new political leaders blaming globalization for society’s challenges, creating a vicious cycle in which lower economic growth will only amplify inequality. Cooperation is essential to avoid the further deterioration of government finances and the exacerbation of social unrest,” said Cecilia Reyes, Chief Risk Officer of Zurich Insurance Group.

The propensity of the Fourth Industrial Revolution to exacerbate global risks also came under scrutiny in the Report’s Global Risks Perception Survey. Basing their analysis on 12 distinct emerging technologies, experts clearly identified artificial intelligence (AI) and robotics as having both the highest potential for negative consequences and also the greatest need for better governance. Notwithstanding its potential to drive economic growth and solve complex challenges, experts also named it as the top driver of economic, geopolitical and technological risks among the 12 technologies.

In view of the Global position and recent business fall down worldwide; the insurance industry of Bangladesh is facing a tremendous pressure from the business community and logical corners. In this connection, IRDA and GoB have taken some measurements to protect the insurance business environments to contrary of Global risk position.


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