| dc.description.abstract | This case study explores the credit management policies of Sandhani Life Insurance
Company Ltd. a leading financial institution operating within Bangladesh's life insurance
sector. The aim of the study is to assess the company's approach to managing credit risks,
evaluating how its policies align with industry standards and the regulatory framework while
ensuring sustainable growth and financial stability. Sandhani Life is a prominent player in
the life insurance market, offering a range of life and health insurance products. The
company aims to provide financial security and peace of mind to its customers while
maintaining a strong financial position.
The credit management policy focuses on reducing default risk by setting clear guidelines on
underwriting, assessing the creditworthiness of clients, and structuring insurance products.
The policy includes risk evaluation techniques, such as assessing applicants' credit history,
income stability, and health condition, to ensure sound decision-making before offering
coverage. A robust collection mechanism is in place to minimize overdue premiums and
manage any outstanding debts effectively.
Sandhani Life Insurance emphasizes the importance of diversification in its insurance
portfolio to spread risk. The company also incorporates reinsurance agreements to mitigate
potential large claims that could affect financial stability. Regular monitoring of
policyholders’ financial health ensures early detection of risks associated with premium
payments or policy lapses.
Sandhani Life’s credit management practices are aligned with the regulatory requirements
set by the Insurance Development and Regulatory Authority (IDRA) of Bangladesh. The
company adheres to national financial guidelines, including solvency requirements,
minimum capital standards, and investment protocols to ensure long-term sustainability and
protection of policyholders' interests.
Sandhani Life Insurance Company Ltd. demonstrates a well-structured and proactive credit
management policy, aimed at balancing risk and profitability. With continuous
improvements and adaptation to the changing financial landscape, the company can
maintain its competitive position while ensuring a secure financial future for its
policyholders.
This case study highlights the significance of an effective credit management policy in
financial institutions and provides a detailed analysis of Sandhani Life Insurance’s approach,
strengths, and areas for improvement. | en_US |
