16. [LOW RETURN] Partly for reasons of drastic fall in money value and partly for reason of nil or low bonus addition resulting from a combination of high management expenses and low investment return, life insurance has ceased to look as an attractive savings medium.
17. [TRADITIONAL MARKETING] Both as a medium of savings and as a provider of financial security in the event of premature death of a bread winner and in old age, life insurance has relatively greater appeal among the mid-income people having steady income. For various reasons poor monetary benefit, poor services, no tax incentive to government employees etc.-the traditional marketer of insurance have drastically shrunk. So insurers force to sell policies among different classes, such as business people, well-to-do farmers, traders etc. These peoples interest for life insurance is rather lukewarm. Soliciting business from them is harder. Procuration costs, as a result, have to be raised and at the same time quality of business falls.
18. [TRADITIONAL INSURANCE ACT] The present insurance act was enacted more than half a century back. Many amendments have been made though since then but the basic character of the act has remained virtually unchanged. This act does not suit the needs of life insurance in the present day in Bangladesh. The all pervasive stringent regulatory functions carried and exercised by the office of the controller of Insurance (CI) is not consisted with the market liberalization policy of the government. In its present form, the act is obstructing, rather than helping, healthy growth of life insurance in the company.
19. [RESTRICTIVE INSURANCE ACT] One would find it difficult not to admit that the Insurance Act is too restrictive in the matter of investment. The inflexible rigid rules put obstacles in the way of earning high profits for the life fund.
20. [NATURE OF INTANGIBILITY] The current practice is that every company tries to promote its own products, but the benefits of insurance as such are not highlighted. In other words, the publicity is itemized, not general.
21. [INADEQUATE TRAINING] ] In life insurance, for the sales personnel particularly, importance of training can not be overemphasized. But unfortunately the present facilities for training, despite what the Insurance academy is doing, are meager.
22. [ADVNTAGES OF PSC] Whatever may be in theory, in reality a public sector corporation (PSC) engaged in insurance business is not accountable to anyone. The controller of insurance (CI) cannot enforce its authority over the PSC, since the latter can easily disregard the CI without fear and any positive action. This gives the PSC, compared to private companies, many advantages. Of course, these so-called advantages are truly of an illusory nature since in the long run they will do much harm not only to the PSC itself but also to the life insurance industry as a whole.
23. [DISCRIMINATORY ATTIRUDE] The private insurance companies are noticing that in any dispute arising between the PSC and the private companies, the authority, for some reasons is always found to take a position against the companies in favor of the PSC. This kind of discriminatory attitude does not indicate a sincere belief in free market concept.
24. [LACK OF RELIABILTY] Peoples have lacking of reliability on the insurance company, because many insurance companies do not make payment they agree to pay in time of selling policy to the people.
25. [LOW ATTRACTIVENESS OF OFFERINGS] The offerings of much of the insurance companies are not so much attractive that they can allure people to buy a life policy.
26. [LACK OF ADVERTISEMENT] The lacking of proper advertisement and information about life insurance package are also important factor for poor life insurance business.
27. [INABILITY TO SOLVE PROBLEMS] Many of the life insurance companies are unable to solve the problems of the policyholders.
28. [LOW QUALITY SERVICE] Inability to maintain the quality of the services provided by the life insurance companies is also a problem.
29. [DEARTH OF UNDERWRITER] In Bangladesh, there is a serious dearth of life insurance underwriters and for that reason-underwriting decision is delayed to the detriment of the sales force and the proposed policyholders.
30. [LACK OF CONFIDENCE] Lack of faith upon insurers is one of the fundamental reasons for which insurance business cannot strong position in Bangladesh. Most of the respondents have said that insurance in Bangladesh couldnâ€™t achieve the fullest faith of people. At one side, insurance business is not well known to the general people and on the other side; the known people are dubious about its service. Public image about services of insurance companies is very poor. Majority of the insurance concerns and almost all non policy-holders confessed this very frankly and counted it as a burning constraint behind the progression of insurance business in Bangladesh. This feeling of distrust is very intense in the case of life insurance as life insurance contract is usually made for a longer period of time. The non-policy holders argued that the motive of insurance companies is to be a millionaire over night.