Development of Insurance in Bangladesh

Insurance is not a new idea or proposition to the people of Bangladesh. During the British rule in
the then India, some insurance companies started transacting insurance business, particularly life,
in this part of the world and gained momentum.

Just after independence, following a bitter and brutal war, the Government took over the control
and management of all the Pakistani Insurance Companies. Ultimately, the insurance industry of
Bangladesh was nationalised in August 1972. The weak insurance industry of the country
suffered a set-back. This is because the newly created Life Insurance Corporation (Jiban Bima
Corporation) had to take over the liability of all life policies written by Pakistani insurers. As on
1- 1-1973 the assets of Pakistani life insurers taken over by the Jiban Bima Corporation (JBC)
amounted to Taka 148 million against total liabilities of Taka 264 million. Similarly General
Insurance Corporation known as Shdharan Bima Corporation (SBC) inherited assets of taka 103
million against liabilities of taka 76.5 million.

The Govt. of Bangladesh promulgated an ordinance in 1984 to allow the formation of insurance
companies in the private sector. So fat 42 general insurance companies and 17 life insurance
companies have commenced business. No foreign company except American Life Insurance
Company (ALICO) has been allowed to operate in Bangladesh. ALICO is the only foreign
insurance co. operating in Bangladesh since independence and transacting life insurance business
throughout the country and enjoying the largest pie of life market.

Present Status:

Up to 2000, the government has given permission to 19 general insurance companies and 10 life
insurance companies in the private sector. Insurers of the country now conduct almost all types
of general and life insurance, except crop insurance and export credit guarantee insurance.
Numerous institutions, associations and professional groups work to promote the development of
insurance business in Bangladesh. Prominent among them is the Bangladesh Insurance

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Association (formed on 25 May 1988) having 30 members. It aims at promoting, supporting and
protecting the interests and welfare of the member companies. Another example is Bangladesh
insurance academy.

Surveyors and insurance agents occupy a prominent position in the insurance market of
Bangladesh. The system of professional brokers has not yet developed in Bangladesh. A total of
60 insurance companies are operating in Bangladesh till date. Of these companies, 57 are private,
two state-owned and one is foreign. Insurance Directorate, under the Ministry of Commerce, is
the regulatory-body of the country’s insurance sector. At present there are 44 general insurance
companies running in Bangladesh. Many other private companies are about to commence

Compared with other sectors Insurance in Bangladesh is still underdeveloped. The population of
the country is currently approximately 35 million. Whereas,total annual premium at present is
Taka 12000 million only. In the insurance sector, there is an acute dearth of qualified and trained
people and also there is lack of consciousness among the general public regarding the use and
benefit of insurance. In a recent study, the respondents mentioned following reasons of less
popularity of insurance policies both at individual and organizational level:

 Unawareness and lack of knowledge about the benefit of insurance.

 Claims against insurance policies are not settled.
 Lack of appropriate and diversified insurance policies.
 Insurance is not attractive and profitable in comparison to other form of
 Securities and investment.
 Lack of sincerity of insurance agent.
 Lack of personalised service or inadequate service.
 Lack of transparency
 Religious belief.

Insurance being the contract of utmost good faith, it is the duty of the insurers to issue policies in
unambiguous terms. Therefore, it is necessary to ensure that the warranties and conditions are
well understood by the insured & are complied with. since the conditions & express warranties
are printed on the face of the policies (generally in English); from the legal point of view the

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insurers perhaps cannot be held responsible for not making the terms of the policies clear to the
insured However, the Regulatory Authority may advise all the insurance companies to publish
small leaflets/ booklets in ―Bangla‖ containing important terms, warranties & conditions of the
policies. In many countries the Regulatory Authority itself publishes leaflets & booklets of
similar nature in order to create awareness among the insurance consumers. In a competitive
market economy, insurance companies shall have to survive by providing more & more efficient
services to the clients. ―After Sales Policy Servicing‖ is an important function of the insurance
companies. Bangladesh Insurance Academy has developed and offers several courses of ―Policy
Servicing‖ & ―Sales Management‖. The insurance companies may be encouraged to send their
employees & executives to avail the opportunity of these training courses in order to develop
their skill and ensure efficient client service.

The insurance industry of Bangladesh need to be protected from foreign competition until the
local insurers develops sufficient financial capacity and insurance expertise to compete with
foreign insurers. In a liberalized market, local insurers must take measures in order to compete
more effectively. The pertinent question is how quick they can prepare themselves and how
effectively they handle this situation.

Functions of Insurance
Insurance is defined as a co-operative device to spread the loss caused by a particular risk over a
number of persons who are exposed to it and who agreed to ensure themselves against that risk.
Risk is uncertainty of a financial loss. It should not be confused with the chance of loss which is
the probable number of losses out of a given number of exposures.

It should not be confused with peril which is defined as the cause of loss or with hazard which is
a condition that may increase the chance of loss. Risk must not be confused by itself which is the
unintentionally decline in or disappearance of value arising from a contingency. Where there is
uncertainty with respect to a probable loss there is risk.

Every risk involves the loss of one or other kind. The functions of insurance are to spread the
loss over a large number of persons who are agreed to co-operate each other at the time of loss.

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The risk cannot be averted but loss occurring due to a certain risk can be distributed amongst the
agreed persons. They are agreed to share the loss because the chances of loss, i.e. the time,
amount, to a persons are not known.

The functions of insurance can be studied into two parts:

 Primary functions, and

 Secondary functions.

Primary Functions:

 Insurance provide certainty: Insurance provide certainty of payment at the uncertainty

of loss. The uncertainty of loss can be reduced by better planning and administration.
There are uncertainty of happening of time and amount of loss. Insurance removes all
these uncertainty and the assured is given certainty of payment of loss. The insurer
charges premium for providing the said certainty.

 Insurance provides protection: The main function of insurance is to provide protection

against the probable chances of loss. The time and amount of losses are uncertain and at
the happening of the risk, the person will suffer loss in absence of insurance. Insurance
guarantees the payment of loss and thus protects the assured from suffering.

 Rick sharing: The risk is uncertain and also therefore, the loss arising from the risk is
also uncertain. When risk takes place, the loss is shared by the entire person who is
exposed to the risk.

Secondary Functions:

Besides the above primary functions, the insurance works for the following functions:

 Preventions of loss: The insurance joins hand with those institutions which are engaged
in preventing the losses of the society because the reduction in loss cause lesser payment

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 to the assured and so more saving is possible which will assist in reducing the premium.
Lesser premium invites more business and more business cause lesser share to the
assured.

 It provides capital: The insurance provide capital to the society. The accumulated funds
are invested in productive channel. The dearth of capital of the society is minimized to a
greater extent with the help of investment of insurance. The industry, the individual are
benefited by the investment and loans of the insurers.

 It improves efficiency: The insurance eliminates worries and miseries of losses at death
and destructions of property. The carefree person can devote his body and soul together
for better achievement.

 It helps economic progress: The insurance by protecting the society from huge losses of
damage, destruction and death, provides and initiatives to work hard for the betterment of
the masses. The next factor of economic progress, the capital, is also immensely provided
by the masses.

Role of Insurance Companies In The Economic Development Of

Bangladesh

 Formation of capital and increase investment: Insurance companies received premium

from the insured person. These premium increase national capitals. By investing these
capitals, national productions increase.

 Reduce of hindrance of risk: Every sorts of business consists of risks. These risk are more
hazardous in Bangladesh. Insurance companies minimize these risk by privileges on loss.

 Maintenance of national wealth: Insurance companies not only secure financial facts, but
also influence people to take necessary steps to avoid risk.

 Distributions of risk: Insurance companies deal with lots of insured people. So risk are
being distributed among them.

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 Extension of business: By taking all uncertain business risk insurance company extended
the field of business in our country.

 Provide safety and security: Insurance provide financial support and reduce uncertainties in
business and human life. It provides safety and security at particular event.

 Generate financial resources: Insurance generates funds by collecting premium. These

funds are gainfully employed in industrial development of a country for generating more
funds and utilized for the economic development of the country.

 Life insurance encourages savings: Life insurance enables systematic savings due to
payment of regular premium.

 Promotes economic growth: Insurance generates significant impact on the economy by

mobilizing domestic savings. Insurance enables to mitigate loss, financial stability and
promotes trade and commerce activities those results in economic growth and development.

 Medical support: A medical insurance considered essential in managing risk in health. The
insured get a medical supports in case of medical insurance policy.

Classification of Insurance Business And Policies

The insurance business and policies can be classified into three categories from business point of
view—

1. Life insurance: Life insurance means the insurer will play the fixed amount of insurance at
the time of death or at the expiry of certain period. The insurance is not only a protection but is a
sort of investment because certain sum is returnable to the insured at the period.

2. General insurance: The general insurance are includes property insurance liability insurance
other forms of insurance.

3. Social insurance: The social insurance is to provide protection to the weaker section of the
society who is unable to pay the premium for adequate insurance. The govt. of a country must
peroxide social insurance to its masses.

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 Principles of Insurance
The insurance is based upon these two principles —

1. Principles of co-operation:-Insurance is a co-operation device. If one person is providing for

his own losses , it cannot be strictly an insurance because in insurance , the losses is shared by a
group of person who are willing to co-operate .Thus ,the insured are co-operating to share the
loss of an individual by payment of a premium in advance.

2. Principle and theory of probability:-The loss in the shape of premium can be distributed
only on the basis of theory of probability. With the help of these principles, the uncertainty of
loss is converted into certainty.

So, these two principles are the two main legs of insurance.

Insurance Development and Regulatory Authority

Insurance Development and Regulatory Authority (IDRA) has been formed under the provision
on Insurance Development and Regulatory Authority Act 2010 on 26th January in 2011.
Government of Bangladesh has enacted the Insurance Act 2010 to develop and regulate the
insurance business. IDRA has established for the purpose of supervising the insurance business
and safeguarding the interest of policy holder. Insurance development and regulatory authority
by following IFRS and IAS standards control insurance contracts.

Applying IFRS 4 for Insurance accounting policy:

The IFRS exempts an insurer temporarily from some requirements of other IFRSs, including the
requirement to consider the Framework in selecting accounting policies for insurance contracts.
However, the IFRS:
a) It prohibits provisions for possible claims under contracts that are not in existence at the
end of the reporting period (such as catastrophe and equalization provisions).

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 b) It requires a test for the adequacy of recognized insurance liabilities and an impairment
test for reinsurance assets.
c) It requires an insurer to keep insurance liabilities in its statement of financial position
until they are discharged or cancelled, or expire, and to present insurance liabilities
without offsetting them against related reinsurance assets.

Applying IAS 19 for Insurance company when prepare financial report:

Where plan assets include qualifying insurance policies that exactly match the amount and
timing of some or all of the benefits payable under the plan, the fair value of those insurance
policies is deemed to be the present value of the related obligations (subject to any reduction
required if the amounts receivable under the insurance policies are not recoverable in full).

Applying IAS 26 for Insurance company when prepare financial statement:

Content of financial statement according to IAS 26 and if followed by IDRA;

a) A statement is included in the financial statements that show the net assets available for
benefits, the actuarial present value of promised retirement benefits, and the resulting
excess or deficit. The financial statements of the plan also contain statements of changes
in net assets available for benefits and changes in the actuarial present value of promised
retirement benefits. The financial statements may be accompanied by a separate actuary’s
report supporting the actuarial present value of promised retirement benefits;

b) Financial statements that include a statement of net assets available for benefits and a
statement of changes in net assets available for benefits. The actuarial present value of
promised retirement benefits is disclosed in a note to the statements. The financial
statements may also be accompanied by a report from an actuary supporting the actuarial
present value of promised retirement benefits; and

c) Financial statements that include a statement of net assets available for benefits and a
statement of changes in net assets available for benefits with the actuarial present value of
promised retirement benefits contained in a separate actuarial report.

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 Actuary and Actuary Valuation

Actuary

An actuary is a professional who assesses and manages the risks of financial investments,
insurance policies and other potentially risky ventures.

Actuary Valuation

An actuary valuation is a type of appraisal of a pension fund's assets versus liabilities, using
investment, economic and demographic assumptions for the model to determine the funded
status of a pension plan. An actuary valuation is a mathematical analysis performed using
various inputs and assumptions in order to estimate a future liability or asset as of a different
point in time, typically at the company's year-end date. Examples are establishing the liability of
a defined benefit pension plan or other post-retirement benefit, a self-funded workers'
compensation or malpractice insurance plan

Commissions

Commissions are vital aspects of selling insurance. Insurance agents’ compensation is normally
tied to the commission payable on policy premiums.

Fee paid to an agent or insurance sales-person as a percentage of the policy premium. The
percentage varies widely depending on coverage, the insurer, and the marketing methods.

Rebates

A portion of the agent's commission returned to an insured or anything else of value given an
insured as an inducement to buy. The payment of policy dividends, retroactive rate adjustments
and reduced premiums that reflect the savings of direct payment to an agent or home office are
not usually considered rebates. In most cases, rebates are illegal, both for the agent or insurer to
give and for the insured to receive.

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 Management Expenses

Generally the expenses of management are deductible in arriving at the taxable profits of an
enterprise carrying on a trade. In the case of a group of companies it may be important to decide
how far the general expenses of management of the group should be charged out

Distribution of Dividend
Dividend is the return on the investment made in the shares (equity or preference) and is paid out
of the profits of the company. The shareholders being the owners of the company are entitled to
get their share of profit in the form of dividend. While the rate of dividend in case of preference
shares is fixed, the dividend on equity shares varies from year to year depending upon the profit
for the year and the requirement to get back profits. Dividend rate is used for valuation of share
and is an indicator of performance of the company.

Dividend payouts follow a set procedure:

1. Declaration Date: The declaration date is the day the company's board of directors
announces approval of the dividend payment.

2. Ex-Dividend Date: The ex-dividend date is the date on which investors are cut off from
receiving a dividend. If, for example, an investor purchases a stock on the ex-dividend
date, that investor will not receive the dividend. This date is two business days before the
holder-of-record date.

3. Holder-of-Record Date: The holder-of-record (owner-of-record) date is the date on

which the stockholders who are eligible to receive the dividend are recognized.

4. Payment Date: Last is the payment date, the date on which the actual dividend is paid
out to the stockholders of record.

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 Distribution of Bonus
Your employee bonus system can be structured in whichever way makes sense for your business.
However, once you set up an employee bonus system you must follow it consistently and apply
it equally to all of your workers, provided they qualify.

Calculating Employee Bonuses

 To calculate an employee bonus based on a percentage of sales, multiply each employee's

sales figure by the designated amount.

 To calculate an employee bonus per sale, multiply the number of sales each employee
makes by the designated bonus amount.

 To calculate an employee bonus based on a designated sum divided equally, divide the
sum by the number of employees receiving the bonus.

 To allocate a designated sum based on the number of hours each employee worked, add
up the total number of hours that each employee worked. Divide the total bonus amount
by the number of hours to calculate the amount each employee will receive per hour
worked. Multiply the number of hours each worked by the amount each employee will
receive per hour.

Distribution of Profit
In any place of profit generation and revenue production, the profit generated consequently as a
result of this business is then distributed according to the final calculations. This is meant about
the profit distribution.

Method of Profit distribution

Mainly the profit distribution is accomplished after proper calculation of the costs in a business
and the amount obtained as final profit. Then that profit is distributed according to the shares
among the stakeholders for the specific business. There are different procedures of profit
distribution in fields, export centers, distribution centers and pack houses. It is required that the

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distribution of cash and profit should be planed and done systematically. Usually the revenues
are distributed among the various cost centers of the branch or a work place. It is required that
the profit distribution activity must be designed in such a way that every individual involved in
the revenue generation and the whole enterprise are benefitted equally. In this regard it must be
maintained that every stage in the production procedure is profitable otherwise the sustainable
profit cannot be achieved.

Design of profit distribution

In order to design the profit distribution, it is very important to design the pricing system of
products. This will give both the producers as well as the exporters a proper financial stake in
success and every one of them will then be responsible for bringing revenue and net profit for the
enterprise. In this way the profit which is distributed individually becomes competitive with
other sources of incomes and other production opportunities.

Profit from the Product Pricing System

It has been described by the economists that the formulation of an effective product pricing
system is very favorable for the effective profit distribution. This is the phenomenon which can
benefit even the small stake holder in a business. In this way the profit distribution can be made
efficient from small perspectives as well. It depends upon the stake holders and workers to put
these particulars in the profit management and distribution. Usually the pricing systems prove to
be good models for adaptation to the local profit distribution systems.

Registers of Insurance Company

The Register of Insurance undertakings is a representation of the information provided by the
respective National Competent Authorities that are responsible for authorization and/or
registration of the reported insurance undertakings activities.

Great care has been taken in compiling all the information presented here. Each National
Competent Authority also publishes a register of insurance undertakings on their website, in case
differences still remain between the information published by EIOPA and the lists available on

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the National Competent Authority website, the information published in the national websites
should prevail and the issue should be reported to the relevant National Competent Authority.
EIOPA does not accept any liability for the completeness, accuracy and correctness of the
information.

Resource Companies may ask you for:

A list of the different insurance policies that your company holds. This list should cover:
- Name of insurer;

- Type of insurance
- Policy number
- Expiry date
- State or territory policy covers
- Amount of cover
- Any specific conditions

There are four main types of insurance cover that Resource Companies will ask for. These are:

 Workers Compensation Insurance – Employers are required by law to hold this type of
insurance to cover their employees in case they are injured or become sick through a
work related incident.

 Professional Indemnity Insurance – Professional Indemnity insurance covers some of

the costs if your company is taken to court because of something it may have done
wrong. For example, a customer might take Joe’s Electrical Company to court to claim
damages because they believe that Joe’s electrical work was the cause of an electrical fire
that burnt down their offices. If Joe’s Electrical has Professional Indemnity Insurance, the
insurance will pay court costs and damages that may be awarded against Joe.

 Public Liability Insurance - Public liability insurance covers your business when a
member of the public claims to have suffered injury or losses because of your business.
For example, if a member of public trips on a loose floor tile in reception and breaks their

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 wrist, Public Liability insurance is designed to pay compensation to the injured person
and the costs of defending your business in court.
 Motor Vehicle Insurance – Resource Companies will often also ask for the details of any
motor vehicle insurance held by your company.
This is to ensure that your employees and any other people or property are insured in case
of accidents while driving company cars.

Submission of Returns

Annual Returns:

Undertakings must submit annual returns using the Online Reporting System

1. Non-Life Annual Returns

The non-life annual returns must also be supplied in hard copy in the format outlined in SI 202 of
1995 (EC (Non-Life Insurance Accounts) Regulations 1995The returns should be submitted by
30th April each year (or 4 months after the financial year-end).

2. Life Annual Returns

The data to be submitted by Life Insurance undertakings is outlined in SI 360 of 1994 (EC (Life
Assurance) Framework Regulations)The returns should be submitted by 30th April each year (or
4 months after the financial year-end).

3. Reinsurance Annual Returns

Reinsurance undertakings must submit annual returns in the format and on the basis outlined in
the requirements issued by the Central Bank.

Quarterly Returns:

Insurance undertakings may also be required to submit returns on a quarterly basis using the
Central Bank’s Online Reporting System Quarterly returns should be received within 4 weeks of
the end of the relevant quarter. We have also issued Guidance Notes on the completion of
Quarterly Returns.

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 Re-Insurance Business in Bangladesh
After establishment of private Insurance Companies in the year 1985 in Bangladesh,
Government authorized SBC to accept 100% reinsurance of private insurance company’s. SBC
in its role as a re-insurer has lent support to the private insurance companies in Bangladesh in a
big way. In view of

The huge net-worth and retention capacity, SBC has accepted both treaty and facultative
businesses from the private insurance companies. In respect of reinsurance, the Insurance
Corporation

(Amendment) Act 1990 provides that fifty percent of a company’s reinsurance business must be
placed with the SBC and remaining fifty percent may be reinsured either with SBC or with any
other insurer in Bangladesh or abroad. SBC is doing direct insurance as well as private insurance
company’s reinsurance. SBC is the largest General Insurance Corporation in Bangladesh doing
direct Business to the tune of BDT 886 million in the year 2005. During the same period its
reinsurance premium income was BDT 2627 million.SBC is a shareholder of Asian Reinsurance
Corporation.SBC’s major portfolio comprises of fire, marine cargo, aviation and engineering
business.SBC also accepts reinsurance business from overseas market through its intermediaries
and as well as directly.The sound financial backing and rich experience earned over the years in
the field of insurance, reinsurance and financial services (which includes investment, risk
improvement services etc), brings SBC in an ideal position of a professional reinsurer in
Bangladesh.

At the present growing economy in Bangladesh the premium income of SBC is also increasing
day by day

Reinsurance organisations in Bangladesh

 Agrani Insurance Company Ltd

 American Life Insurance Company
 Bangladesh General Insurance
 Bangladesh General Insurance Co. Ltd ( BGIC )
 Continental Insurance Ltd

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  Crystal Insurance Company Ltd
 Eastern Insurance Co. Ltd
 Express Insurance Ltd
 Fareast Islami Life Insurance Co. Ltd
 Fearel Insurance Company
 Federal Insurance Company Ltd
 Green Delta Insurance Co. Ltd
 Homeland Life Insurance Co. Ltd

Role of Bangladesh Insurance Academy (BIA) :

Bangladesh Insurance Academy (BIA) is the national level insurance training & education
provider in the country. The Academy came into being in November 1973 through a
Government resolution. It functions as an autonomous body under the administrative
control of the Ministry of Finance. The members of the Board of Governor (BOG) are drawn
from concerned ministries, regulatory authorities, state insurance corporations, private
insurance companies, insurance association and University of Dhaka with the assistance of
a Director, the executive head of the Academy, appointed by the Government. The BOG is
the highest policy making body of the BIA. BIA plays a important role in Bangladesh Insurance
sector although the work area of it very few but it plays very crucial part. Here is some work
which they did in the betterment of Bangladesh insurance sector –

BIA is envisaged as the apex institution in the field of Insurance and emerging as a Centre of
excellence in insurance training & education. It give professional education in insurance
leading to certificates and diploma. It is trying utmost to prepare itself to provide
contemporary insurance knowledge to the officers & employees of insurance industry. It offers
basic, comprehensive and field based training course on life & non-life insurance. As the
insurance sector in Bangladesh has adopted reforming measures with a view to keeping pace
with modern world, need based training is imperative to turn the human resource of insurance
industry into an efficient manpower. With such a view, BIA is updating and changing its
training & educational syllabus continuously .The academy is aware of contemporary insurance

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issues and accordingly arranging seminar/ workshop on such time worthy issues. BIA also offers
Diploma in both life and general insurance. To maintain standard, academy follows the latest
syllabus of international insurance institute like Chartered Insurance Institute (CII, UK) &
Malaysian Insurance Institute (MII). BIA conducts research on the insurance industry. It also
conduct in-service training for officers and employees of the public and private sector
insurance organizations. It train up insurance officers of other organizations .Publish
various research works and books on insurance. BIA try’s to establish close contacts with
local and foreign academic institutions, organize joint courses and invite students and
trainees from abroad.

Insurance Salesmanship:
Insurance salesmanship is the way an insurance sales agents help insurance companies generate
new business by contacting potential customers and selling one or more types of insurance. An
agent explains various insurance policies and helps clients choose plans that suit them. Although
most insurance sales agents work for insurance brokerages selling the policies of several
companies, some work directly for a single insurance company.

An insurance salesman is an employee of an insurance company whose job is to advise on and

sell insurance.

Art of selling insurance policies:

 Call potential clients to expand their customer base.

 Interview prospective clients to get data about their financial resources and discuss
existing coverage.
 Explain the features of various policies.
 Analyze clients’ current insurance policies and suggest additions or changes.
 Customize insurance programs to suit individual clients.
 Do administrative tasks, such as keeping records and handling policy renewals.
 Help policy holders settle claims.
 They offer their clients comprehensive financial planning services, especially for clients
approaching retirement. These services include retirement planning, estate planning, and
help in setting up pension plans for businesses.
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  Many agents spend a lot of time marketing their services and creating their own base of
clients.
 Sometimes they make ―cold‖ sales calls to people who are not current clients.
 By keeping clients happy, so they recommend the agent to others is a key to success in
selling insurance policies.

INSURANCE ACT, 2008

Minimum Competency Requirement

1. Introduction

Under the provisions of the Insurance Act, the Central Bank of Seychelles is obliged to refuse to
grant a licence unless the applicant proves that it is fit and proper to be licensed.

One component of the competency criteria is the possession of necessary qualification,

knowledge and experience by key personnel of applicant entities.

Applicants are advised to read the guidance note in conjunction with the Act, the Fit and Proper
Guidelines and any other guidelines the Central Bank may issue from time to time.

2. Application

These guidelines are to be applied by the Central Bank when determining the competency of;

 the directors and principal officers of an entity applying to be licensed as an insurer;

 the principal officers and managers of an entity applying to be licensed as an insurance
broker;
 the principal officers of an entity applying to be licensed as an insurance agent;
 an individual applying to be licensed as an insurance manager;
 an individual applying to be licensed as an insurance representative;
 an individual applying to be licensed as an insurance broker;
 an individual applying to be licensed as an insurance agent;
 an individual applying to be licensed as an insurance sub-agent;

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3. Qualification and Experience Requirements

Managers

Qualification Possess a degree in a relevant field of study such as finance, business, economics,
accounting, commerce etc. from institutions recognized by the Seychelles Qualification
Authority; and Have the equivalent of 2 years relevant industry experience.

Principal Insurance Representatives

Possess a degree in areas not directly related to financial services; and Also have the equivalent
of 5 years relevant industry experience .

Brokers

Qualification Possess minimum academic qualification equivalent to or higher than 2 GCE ―A‖
Level credit passes or Diploma in Business Studies or Diploma in insurance; and Have the
equivalent of 2 years relevant industry experience.

Agents

The Possess minimum academic qualification equivalent to or higher than a Certificate in

Insurance and Have the equivalent of 3 years relevant industry experience.

Sub – Agents

Possess minimum academic qualification equivalent to or higher than 2 GCE ―0‖ Level credit
passes or 2 IGCSE Level credit passes or a pass on Foundation in Insurance.

In order to, create the growth of insurance business in our country, insurance companies should
expand their target market by providing responsive services and establishes efficient departments
to perform such task.

Government must minimize the restrictions on premium so that insurance companies can fix
their premium according to their demand. This will increase the profitability of the insurance
companies.

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