Evaluating the Impact of Insurance Companies in the Development of Insurance Practices in Bangladesh

Abstract

This article attempts to explore the ultimate determinants affecting the recent progress of insurance company in Bangladesh. The whole scenario is presented through focusing on the various elements affecting the performance of insurance company over a period of time. These performances of insurance companies are affected by many macro economic variables such as savings and investment, distribution of wealth, interest rate and economic growth such as GDP. The models developed in this paper make known that some of the determinants such as premium, pooling of risk, endowment, insurable interest, utmost good faith and so forth. Although in Bangladeshi perspective insurance is still in the dark side of our daily life. As a upshot, this paper examines whether the so called insurance companies are really playing an effective role for the betterment of Bangladeshi economy equal wealth distribution the cornerstone of success.

Keywords: Pooling of risk, Endowment, Premium, Insurable interest, Utmost good faith

JEL Classification: P34, P40