Performance of Some Selected Non-Government General Insurance Companies of Bangladesh Compared to Government Insurance Company

This paper analyses the performance of non-government general insurance companies in Bangladesh compared to government owned company. General insurance market in the country is small but competitive due to non-acceptance of coverage for a large volume of insurable properties, intra-industry rivalry, and the slow business & industry growth. However in this market non-government insurers are preforming considerably better and enjoying higher business return. Especially in the areas of investment, asset turnover, claim settlement, and overall profitability - performance of these insurers have consistently increasing compare with government own company - Shadharan Bima Corporation (SBC). This study revealed that the nongovernment general insurers are prompt in responding to the market changes, product demand, and changes of overall social and business environment. Moreover taking the advantages of recent changes in reinsurance policy non-government insurers have acquired a mentionable control over premium earning. In addition, due to bureaucracy and inefficiencies of the SBC, private insurers are gradually earning trust of the business communities and effectively patronizing the development process of commerce and trade. However for future continuous growth the non-government companies should take strategic steps like innovation in insurance operations. increase marketing efforts and initiate various investment scheme to utilize more proportion of total assets for generating higher income. Further through avoiding exaggeration and misrepresentation of policy features non-government insurers can establish more public confidence and ensure sustainable development.