Diversification of Islamic Financial Instruments
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Table 55: Evolvement of Islamic Insurance in Bangladesh Since 1999
Name of Islamic insurance company Year of establishment Branch
1 Islami Insurance Bangladesh Limited 25 October 1999 38
2 Takaful Islami Insurance Limited 21 December 1999 32
3 Islami Commercial Insurance Company Limited 01 January 2000 28
Islamic Life Insurance Companies
1 Padma Islami Life Insurance limited 26 April 2000 8
2 Fareast Islamic Life Insurance Company limited 29 May 2000 1012
3 Prime Islami Life Insurance limited 22 April 2002 83
4 Alpha Islami life Insurance limited After July 2013 –
5 Trust Islami Life Insurance Company limited After July 2013 –
6 Protective Islami Life Insurance Company Ltd
7 Zenith Islami Life Insurance Company Ltd.
8 Mercantile Islami Life Insurance Company Ltd.
Source: Annual Reports of Islamic Insurance Companies and their websites.
Islamic Insurance Segment
Insurance sector in Bangladesh emerged after independence of the country with 2 nationalized
insurance companies- one life and one general; and one foreign insurance company. Under the
denationalization move in mid 80s, private sector insurance companies started to enter in the
industry and it got expanded. Presently, the insurance sector of the country is composed of 62
companies which are operating under 'Insurance Act 2010'. Out of them 18 are life insurance
companies including one foreign company and one is state-owned company, and 44 general
insurance companies including one state-owned company.
With an eye to boosting the insurance sector of Bangladesh, the initiatives so far taken by the
Government since the independence, has not been able to drive any radical change, other than
a few steps successfully enacted in 2010. Insurance Development and Regulatory Authority
(IDRA) is the regulatory body to control, guide and supervise the insurance industry in
Bangladesh. The government passed two insurance Acts on 03 March 2010 in a bid to further
strengthen the regulatory framework and make the industry operationally vibrant. The new
Acts, came into effect on 18 March 2010, are Insurance Act 2010 and the Insurance
Development and Regulatory Authority (IDRA) Act 2010. Bank and Financial Institution
Division of the Ministry of Finance has recently drafted the National Insurance Regulation,
2014. It is expected that the recommendations of the said regulation may improve the
insurance market of Bangladesh as it has defined strategic long term and short term goals of
the insurance sector.
Islamic Insurance Industry in Bangladesh
After the successful launching of Islamic Banking system in Bangladesh in 1983, Islamic
insurance tends to be felt important to introduce. In Bangladesh Islamic insurance (Takaful)
companies started functioning in the year 1999. At present 3 full-fledged Islamic Non-life
insurance companies, 8 full-fledged Islamic life insurance companies and 16 conventional life
insurance companies having Islamic insurance windows comprises the Islamic insurance
sector in Bangladesh. Islamic insurance companies (both life and general) have established
their own Shariah supervisory boards. All individual Shariah supervisory boards have formed