One of the most integral parts of the modern economy, insurance protects financial aspects of unexpected death, injury, loss of property, loss of earning power, legal liability or other unexpected expenses. However, the contribution of the sector to an economy is often understated. The sector actually contributes significantly to economic growth by providing stability to functioning of businesses and generating long-term financial resources.
It also provides financial support and reduces uncertainties that individuals and companies face at every step of their lifecycles. Insurance provides an ideal risk mitigation mechanism against events that can potentially cause financial distress to a family or establishment.
Over the past decade, Bangladesh has experienced significant growth in various sectors. With an average growth rate that is well above the Asian average rate, Bangladesh is one of the fastest-growing economies in the world. Conversely, the growth of the insurance sector has not been at par with the economic boom. Insurance penetration rate in the country hasn't reached the expected level compared to other developing countries. According to Swiss Re data, a leading global re-insurer, Bangladesh's overall insurance penetration stood at a meagre 0.57 per cent in 2018, the lowest in the emerging Asian communities.
In recent years, there has been a lot of positive buzz around the insurance sector. An increasing number of individuals and entities are leaning towards insurance as a means of safeguarding themselves against potential risks. Through reinforcement of trust and transparency, there is a sense of positivity around the sector which has initiated its reformation. The positive momentum prevailing across the industry has been possible through joint efforts of the regulator, associations and some of the vigilant private sector players that are working as harbingers of the brighter days.
In fact, to emphasise the significance of insurance, the government has for the first time declared the 1st March to be the National Insurance Day. It is being celebrated with full momentum including the mega-event which was inaugurated by the honorable Prime Minister.
Guardian Life Insurance Limited (GLIL) is one of the names that comes at the forefront. It is the fastest-growing life insurance company that is setting benchmarks for the industry. With more than 10 million lives insured, GLIL is penetrating the market at a rate that was unimaginable a decade ago. With intuition and innovation, GLIL has been able to introduce products specialised for various sectors and Group Business (Group Insurance) is one of the most successful product areas where GLIL has changed the impression of corporate insurance.
A Group Insurance scheme is essentially a health/medical insurance plan that covers all members of a particular group -- the employees of an organisation, in this case. In a Group Insurance policy, members get insurance coverage at a reduced cost as the provider's risk is spread across a significant number of employees. As our economy advances, Group Insurance is becoming a necessity for many companies. It is a major compliance issue for major multinational corporations (MNCs) and for the local companies; it allows a competitive advantage in the provision for employee benefits at low cost.
With more than 300,000 lives covered under health and life coverage, the secret to GLIL's success in group business lies in the core values of the company which are: Customer Service, Relationship Management, Innovation, Networking and quick Claim Settlement.
CUSTOMER SERVICE: Insurance has a lot to do about quality delivery of service. Insurance companies are service-oriented companies. It is an intangible product; a good insurance company should have excellent customer service as core to its business. GLIL is dedicated to ensuring that customers are updated with every piece of information they need through its sales team, service team and 24/7 call center.
RELATIONSHIP MANAGEMENT: GLIL has set a new benchmark in the industry for relationship management with corporate clients. It has set them apart from their peers and helped them to reach new heights within a short period of time. In just a few years, Guardian has amassed 222 corporate clients. GLIL's approach to clients is uniquely impressive. Rather than just selling a product; it plays the role of a consultant. After evaluating client's expectations, GLIL's representatives advise the best line of products suitable for the client's needs.
Additionally, when a client is on-board, Guardian keeps constant communication with the client to ensure enhanced services. They have created a separate Group Client Service function in order to ensure a strong relationship throughout the lifespan of the relationship. It allows the client's flexibility to select the plan that has the aggregate benefit of the company.
CLAIM SETTLEMENT AND NETWORKING: Parallel to the Corporate Relationship Management department, the Claims Department works diligently to ensure every case is handled smoothly and transparently. GLIL settles claims within five working days after all the documents are submitted. GLIL not only does ensure valid claims are paid but also guarantee that all claims are processed promptly. GLIL has already paid over Tk 950 million in claims in the segment.
Another unique selling proposition for Guardian Life is its wide span of hospital network. GLIL's hospital network is more extensive than any of the peers in the market. Currently, there are 348 hospitals under GLIL network.
INNOVATION: In order to keep up with the ever-changing landscapes, every company must embrace innovation. GLIL has turned the entire insurance industry around a corner by innovating to make every step of the process easier and more transparent. It designs a product in accordance with the group client's needs. It has also developed software which calculates estimated premiums on the spot. A similar estimation used to take a lot of time but now can be done even in few seconds. Innovation has truly put GLIL at the forefront of the insurance boom.
In a short span of six years, GLIL has established itself as the most reliable and competent insurance company in Bangladesh. Group business has high potential in the country. It has become a necessity for numerous companies; GLIL wants to be the harbinger of modern group insurance. The company believes, the more transparency it can provide, the better it can penetrate in this promising market.
