Kathmandu. The newly signed trade agreement between the U.S. and Bangladesh mandates Bangladesh to remove the mandatory 50% concession to state-owned reinsurance company General Insurance Corporation and open the market to full competition.
The Bangladesh government has agreed to waive the 50 per cent concession given to state-owned General Insurance Corporation (SBC) by non-life insurance companies as part of a new trade deal with the US. Currently, all non-life insurers are required to hand over half of their reinsurance portfolio to SBC. This ensures a steady flow of premium income to the reinsurer.
This change is expected to create structural changes in Bangladesh’s insurance and reinsurance market. This is because international reinsurers will now operate independently in the market and help the insurance industry strengthen risk management practices, improve service quality and increase resilience.
