Bangladesh is a poor country and most of the people in this country live under extreme poverty level.

All
these people fight hard to earn their livelihood and are marginal in relation to the expenditure with the
income. It is quite impossible for them to save some money for future need. Therefore, they are quite
unable to give the premium. The overall poor economic condition is creating obstacle to flourish the
insurance business in Bangladesh. (prezi.com, 2019). A big portion of our population believes that
insurance business is nothing but cheating and selling papers only. As a result, the penetration rate in
the insurance sector is very low. Besides in this small market of Bangladesh too many insurance
companies are creating an unhealthy atmosphere. The competition in the insurance company should be
fair and ethical. Unfortunately, the scenario is completely opposite. Standing to be one of the major
reasons for lower investments and lower outputs from this sector. This situation can be improved by
providing modernized rules and regulations to bring discipline in the sector, for the interest of the
insurance industry. (Nation, 2019). At present the scope to invest the fund in profitable sectors is very
limited in the country. Share market is suffering from various predicaments. Investment in real estate is
also not that attractive. Only available source is to keep money in fixed deposit with the scheduled
banks, leasing companies/investment banks, etc., but here also the yield is not that attractive.
Therefore, it is very difficult for the insurance companies to diversify their invest-able funds and accrue
better yield on it. (Express, 2019)