“Quality measurement of Insurance Industry”

Abstract

In the world full of financial risks and unexpected crisis, individuals always want to protect their assets, properties and other financial assets. Thus, insurance policy is introduced to secure the tangible and intangible insurable claims. For education, people are taking education insurance to provide protection with the financial reimbursements associated with educational requirement. Thus, different property needs to be secured by taking different types of insurance. Health protection can be ensured by taking healthcare insurance policy, to support a family with financial protection after a death of an earning member, life insurance is there. Like this way, so many insurance policies are being undertaken by almost all of the people in the world. Although in Bangladesh, this scenario cannot be all the same but on an emerging level. Many people are not willing to take insurance policies because of separate perceptions and religious perspectives. Because this industry is giving protection against the financial damage which is quite inevitable, there is a mandatory requirement for its quality measurement encircling its technical efficiency and better performance quality to introduce new features/policies and increase the range of customers. In several spheres of insurance industry, growth and efficiency should be measured. These spheres are- Management & Reduction of cost and other expenditures, ensuring labor sufficiency, structuring payment scales of regulatory members, staffs and other employees, construction of rules and regulation on a discernible way to get reached toward the customers. To increase customers’ and policy holders, another initiatives can be initiate new policy and feature which will retain the customers. Quality measurement also includes risk management of insurance industries. This part include- managing natural risks which are unforeseen, managing external risks depending on competitors’ actions. Determining capital structure, total assets, Return on assets, return on equity, Investments, GDP effects, Total factor productivity, other demographic & macroeconomic variables etc. for determining growth specifically in individual industry, comparative analysis can be conducted, for example, Health care insurance Vs. Education insurance, Conventional life insurance Vs. Islamic Insurance, Insurance Vs. Banking industry etc.