Factors Affecting Insurance Consumption in Bangladesh: A Study in Dhaka City

Abstract

This study examined factors within insurance institutional framework that affect insurance consumption in Bangladesh. Primary data were collected from 80 insurance consumers judgmentally drawn from 10 insurance companies located in Dhaka city. Data were collected on: accessibility and prompt payment of claims, knowledge of the use and importance of insurance, professional activities by those selling insurance, nature of insurance policy statement and the overall corporate image. The data were analysed using both descriptive and inferential statistics. The socio-economic characteristics of insurance consumers revealed that most of them were literate, mostly public servants, married and were still in their active ages. In accordance with our theoretical framework, our empirical results support the established relationship between insurance consumption and institutional performance. Realising these problems as they affect insurance patronage and development in Bangladesh, the study recommends a general overhauling of insurance institution framework as a way forward for the development of a vibrant insurance market in Bangladesh.

Keywords: Factors, Affecting, Insurance, Consumption

DOI: 10.7176/JESD/10-24-06

Publication date: December 31^st 2019