The main reasons for the unpopularity of insurance in Bangladesh
are
- Low income per capita - The lack of earnings is the major
problem in the country. As such many of the people are unwilling to
shell out Extra in order to secure their life or assets.
- Low number of dependents in family - Many part of the
population find their job in the unorganised sector at early phase
in life and as such they are not dependent on their parent.hence no
number of dependents cause unpopularity in insurance
- Lack of financial literacy and knowledge about accural
/insurance sector.
- Limited number of Insurance companies operating in the
region.
- High underwriting cost due to lack of higher living standards
and high premiums are charged.
- Belief in islamic finance where along with interest / insuring
against death' is considered against god's will.
Hence for all such reasons popularity lacks.
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