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Low Demand For Life Insurance Among Common People Of Bangladesh

SECTION I
INTRODUCTION
1 Background of the study
The most significant measure of an industry or an activity is its contribution towards employment generation, strengthening linkages with other sectors of the economy in promoting growth and stability, and creating a sizeable impact on the national income of a country. In developed countries, the Insurance industry is a necessary part of daily life and serves all the above mentioned purposes as opposed to developing countries where insurance is still dependent upon an individual’s net disposable income, religious beliefs and government policies. Hence the economic significance of insurance as measured by the total gross premiums to GDP is very high in developed countries in contrast to developing countries. Generally, insurance companies help businesses and individuals in managing risks which can severely impact their economic well-being. Moreover, insurance companies are also termed as the largest investors in capital markets, in addition to being characterized as the sole suppliers of insurance business to reinsurance companies. Life insurance in Bangladesh is very small in comparison to the economy of Bangladeshi Bangladesh the average revenue generated by life insurance constitute only a small (nearly .23%) of the GDP. Bangladesh has also a low per capita income in life insurance business compared to the other countries in the south Asia region.  
However the market has been steadily growing but not in a rate as it should be. Economic growth, expansion of infrastructure, industries, trade and commerce is leading to the expansion of the insurance market. Although Bangladesh has opened up its economy considerably in recent years with various reforms aimed at creating favorable investment environment, there are many barriers to encourage both foreign and domestic investment in the insurance sector.
In Bangladesh the social security system or simply the security system is not so strong and life is highly in...