Delta Life Insurance
Contents
Topics: Page No.
Background 1-3
Mission, Vision 4-5
Organizational Structure 5-7
Profit Allocation 7-8
The Product 8-12
Customer Satisfaction 12-13
Premium Collection 13-15
Compensation 15-18
The Insurance Industry in Bangladesh 19-23
Delta Life’s Constraints 23-24 Measures Taken by Management to Overcome Constraints 24-25
Reference 26 1
Background
Delta Life Insurance Company was founded in late 1986 by Mr Shafat Ahmed Chaudhuri and 21 sponsors, mostly expatriate Bangladeshis living in Kuwait. Chaudhuri was a Britishtrained actuary—the only actuary in Bangladesh at the time—who had worked in insurance companies in Great Britain and Kuwait, and had served as Bangladesh’s Controller of Insurance soon after independence in 1971. By launching Delta Life following the denationalisation of the Bangladesh financial sectors in the mid-80s, Chaudhuri became the father of private life insurance in the country.
Delta Life’s initial products consisted primarily of endowment policies, which combined contractual savings with life insurance, targeted at Bangladesh’s middle and upper classes. Not long after the organisation started, however, Chaudhuri recognised that Delta needed to develop something quite innovative if the organisation was going to be relevant to the vast majority of the population who lived below the poverty line. He strongly believed that the poor needed insurance more than the rich.
The Start of Microinsurance
Inspired by the growing success of the Grameen Bank and other microcredit schemes in Bangladesh, Delta launched an experiment of its own, Grameen Bima or village insurance, in 1988, as a project under the Delta Life corporate umbrella. Indeed, there was
Topics: Page No.
Background 1-3
Mission, Vision 4-5
Organizational Structure 5-7
Profit Allocation 7-8
The Product 8-12
Customer Satisfaction 12-13
Premium Collection 13-15
Compensation 15-18
The Insurance Industry in Bangladesh 19-23
Delta Life’s Constraints 23-24 Measures Taken by Management to Overcome Constraints 24-25
Reference 26 1
Background
Delta Life Insurance Company was founded in late 1986 by Mr Shafat Ahmed Chaudhuri and 21 sponsors, mostly expatriate Bangladeshis living in Kuwait. Chaudhuri was a Britishtrained actuary—the only actuary in Bangladesh at the time—who had worked in insurance companies in Great Britain and Kuwait, and had served as Bangladesh’s Controller of Insurance soon after independence in 1971. By launching Delta Life following the denationalisation of the Bangladesh financial sectors in the mid-80s, Chaudhuri became the father of private life insurance in the country.
Delta Life’s initial products consisted primarily of endowment policies, which combined contractual savings with life insurance, targeted at Bangladesh’s middle and upper classes. Not long after the organisation started, however, Chaudhuri recognised that Delta needed to develop something quite innovative if the organisation was going to be relevant to the vast majority of the population who lived below the poverty line. He strongly believed that the poor needed insurance more than the rich.
The Start of Microinsurance
Inspired by the growing success of the Grameen Bank and other microcredit schemes in Bangladesh, Delta launched an experiment of its own, Grameen Bima or village insurance, in 1988, as a project under the Delta Life corporate umbrella. Indeed, there was