Dhaka, Dec. 5 -- Insurance plays a crucial role in safeguarding individuals and institutions from financial losses arising from accidents, disasters, and other unforeseen events. Despite its importance, Bangladesh's insurance sector has failed to gain adequate traction-largely due to a deepening crisis of public trust. Sector insiders say restoring customer confidence is now the foremost challenge, as long delays in claim settlement, financial irregularities, mismanagement, and dishonest practices by agents continue to drive clients away.

Although Bangladesh's economy has expanded and the insurable population has grown, only four out of every thousand people currently hold life insurance. Experts argue that outdated systems, lack of tran...