Standard Chartered Bangladesh adopted bancassurance in partnership with MetLife Bangladesh through a programme at Pan Pacific Sonargaon Dhaka today, initially making three insurance policies available through its branches and digital channels.

The three are MetLife Three Payment Plan (3PP) (encompassing life insurance and savings protection), My Child's Education Protection Plan, and LifeLine (retirement pension insurance policy).

The policies offer scopes for customisation, easily navigating claims processes, paying necessary fees via the bank's digital channels and access to dedicated relationship managers.

Under regulations approved by Bangladesh Bank and the Insurance Development and Regulatory Authority, a bank can offer four types of insurance products to customers.

Till date five commercial banks have availed the associated licence from the two regulatory bodies of the two sectors.

Standard Chartered Bangladesh has entered into the partnership with only MetLife, which has also penned similar deals with Eastern Bank and BRAC Bank.

"I have been advocating for bancassurance since I took on the role of CEO Bangladesh," said Naser Ezaz Bijoy, chief executive officer of Standard Chartered Bangladesh.

This is because locally life and non-life insurance penetration, measured as the ratio of gross written premium to gross domestic product or GDP, stands at 0.41 percent, he said.

"This rate highlights immense potential for growth and development," he added.

"High uptake of bancassurance will result in risk diversification, lower premiums, capital market development, and overall GDP growth," he said.

The insurance sector is poised to double in size by 2031 across the world, he added.

Regarding operations in rural areas, Bijoy said, "We have a customer base of 1.5 lakh who can digitally buy these insurance products. We have a smart account for which there is no need to have a minimum balance."

"I am confident that this bancassurance will emerge as an effective approach to financial security because it empowers the bank's customers to manage their life priorities," said Ala Ahmad, chief executive officer of MetLife Bangladesh.

Among others, Sabbir Ahmed, managing director, head of consumer, private and business banking at the bank, also spoke.