Performance Evaluation of ALICO in Bangladesh

Abstract

Insurance is not a new business in Bangladesh. Almost a centrally back, during British rule in India, some insurance companies started transacting business, both life and general, in Bengal. Insurance business gained momentum in East Pakistan during 1947 -1971, when 49 insurance companies transacted both life and general insurance schemes. ALICO Bangladesh is the oldest operation in the company's Middle East, Africa and South Asia (MEASA) Division, tracing its origin back to 1952, when it entered Pakistan with business activities also extending to erstwhile East Pakistan. The company started its full service branch operation in Bangladesh in 1974 and has since been marketing individual and group life insurance products with remarkable success. ALICO started its operation in Bangladesh in 1952. It is the oldest operation in the company's Middle East, Africa and South Asia division. ALICO has been the market leader since 1997 amongst 18 companies in this local insurance market. Its head office is in Dhaka and two sales offices in Chittagong & Comilla. ALICO has 89 agency offices all over the country. The sales mechanism of ALICO is activated through these agency offices. The main products of ALICO are as Three Payments Plan (3PP), Income Growth Plan (IGP), Education Protection Plan (EPP), Life Line Plan (IGP) and WP, AI, AX, ADB, HC, CC, Good Health , etc. Total sales of Ordinary Life Policy has increased by Tk 94.90 million from year 2002 to 2003 and renewal premium collection of Ordinary Life Policy in year 2003 had increased from that of year 2002 by Tk. 333.09 million. In year 2003, sale of PA policy had increased by 12.75% from that of year 2002. In year 2003, ALICO had been able to increase it's sales of Group Insurance Policy to TK. 17.16 million, which was TK. 4.38 million higher than that of year 2002. Sales growth of every four years have resulted to 211 .2%, 213.94%, 246.53%, 253.54% and 69.56% in year 1984, 1989, 1994, 1999 and 2004 respectively. The total number of agencies has increased from 16 to 81 in year 2004 from that of year 1880. Sales forces have increased from 500 to 4600 in year 2004 from that of year 1880.