Sonali Life’s Renewal Premium Earning Rate is 95.72 percent. That is, the rate of Tamadi is only 4.18 percent. And that is why the financial base of Sonali Life is very strong. The Insurance Development and Regulatory Authority (IDRA) has given such an opinion regarding the financial capacity of Sonali Life.
Notably, IDRA verified the financial capacity of 13 life insurance companies that were licensed in 2013 and 2014. IDRA takes the initiative to verify the financial capacity of the companies based on the complaints sent by the Ministry of Finance regarding excessive commissions, administrative expenses and other irregularities and corruption.
Sonali Life spent 26.47 percent less than the permissible limit since inception till 2021, the IDRA probe said. Besides, the renewal premium income of the company has reached 95.72 percent.
The investigation report on Sonali Life’s 2020 and 2021 ongoing policies and Tamadi policies says that Sonali Life issued 5 lakh 6 thousand 38 policies in 2020. Tamadi policy revived 3330. On the other hand, 6 thousand 23 new policies were issued. As a result, the number of active policies at the end of 2020 stood at 1 lakh 19 thousand 465. Again in 2021, the number of policies was 10 thousand 559, which is 4.28 percent of the total policies.
The investigation report also said that according to the valuation report, the amount of surplus in 2021 is Tk 96 crore 70 lakh. In 2020, the surplus of the company was Tk 44 crore 43 lakh.
According to the latest October calculations, the company has collected a total premium of Tk 629.58 million in the current year. Out of this, first year premium is Tk 344 crore 67 lakh, renewal premium is Tk 281 crore 66 lakh and group insurance premium is Tk 3 crore 25 lakh.
Apart from this, Sonali Life Insurance has paid a total insurance claim of 76 crore 91 lakh rupees for 15 thousand 634 insurance claims raised during the discussion period.
It should be noted that as of December 31, 2022, Sonali Life was at the top position in the growth of new premium collections in the country’s life insurance sector. The company increased its new premium collection by around Tk 175 crore in the last fiscal year. Earlier also in 2021, the company was at the top position in the life insurance sector by increasing the new premium by around Tk 124 crore.
In this regard, the Chief Executive Officer (CC) of Sonali Life Insurance, Mir Rashed Bin Aman, said that there is a negative perception of insurance among the common people in Bangladesh. Also, the contribution of insurance sector to GDP is very low. We want to clear common misconceptions about insurance. This is why we have paid insurance claims within 7 days for the last 10 years.
He said, contribution of insurance sector to GDP should be increased. This requires customer service, building customer trust. We managed to knock on that spot. Customers insure with our company because they trust us.
Sonali Life chief executive also said, we have ensured the use of technology. We have always tried to keep our commitment not only to pay insurance claims but also to pay insurance claims on due time. We hope, through this, the desired changes will come in the insurance sector.