Shipon Bhuiyan: Insurtech is an innovative system that merges insurance with cutting-edge technology, utilizing artificial intelligence (AI), the Internet of Things (IoT), big data, and machine learning to streamline insurance services. By digitizing processes like policy registration, risk assessment, and claim settlements, Insurtech aims to create a more user-friendly and efficient customer experience.  

Currently, this sector operates as an emerging digital platform through partnerships between traditional insurers and technology companies, such as those within the BASIS Insurtech Regulatory Sandbox.  

The Current Landscape in Bangladesh

Despite its potential, Bangladesh faces several challenges and opportunities within the insurance industry:

Low Penetration: Bangladesh currently has one of the lowest insurance penetration rates globally.  

GDP Contribution: The insurance sector’s contribution to the national GDP is limited to just 0.4 percent.  

Market Growth: As of October 2025, there are 7 approved Insurtech companies in the country.  

Key Players:

Bimafai: A Dhaka-based marketplace focused on comparing and managing health, motor, and travel insurance.  

Adarsh Praniseva Limited: A platform dedicated to livestock insurance and improving the quality of life for farmers.  

Addressing Unemployment through Technology

The rise of Insurtech presents a significant opportunity to address the country’s employment challenges:

Unemployment Data:

Forecasts for 2026 suggest an unemployment rate of approximately 4.7 percent. As of 2024, there were roughly 900,000 unemployed graduates in Bangladesh.  

Digital Reach:

With over 129.6 million internet users (including 114.8 million mobile users) as of 2026, digital services can now reach people's doorsteps with ease.  

Skill Development:

If the educated population acquires the necessary technical skills, the Insurtech sector offers immense career potential.  

Impact:

Expanding the Insurtech sector will not only boost the insurance industry's contribution to the GDP but also serve as an effective tool in reducing educated unemployment.  

Author: Columnist (Insurance Sector)