Sadharan Bima Corporation (popularly known as SBC) is the one and only state-owned non-life insurer and reinsurer in Bangladesh under the Ministry of Finance, Government of the People's Republic of Bangladesh. Both Sadharan Bima Corporation, the non-life insurer, and Jiban Bima Corporation, the life insurer, were created under the Insurance Corporation Act (Act No. VI) of 1973 of Bangladesh. For u
nderwriting the non-life insurance business of Bangladesh, Sadharan Bima Corporation was formed by the government in the year 1973. Up until 1984, SBC was the sole insurer of non-life insurance business in the country. In the same year, some private sector non-life insurance companies started operation. Since then, it is providing reinsurance support to private sector non-life insurers. With regard to regulatory control, Insurance Development & Regulatory Authority of Bangladesh regulates all insurance companies in Bangladesh including Sadharan Bima Corporation. Sadharan Bima Corporation is the only insurer of properties owned by Government of Bangladesh. No other private non-life insurance companies are allowed to insure any public property. An agreement between Sadharan Bima Corporation and Bangladesh Insurance Association (BIA) was introduced for stabilizing non-life insurance market under which Sadharan Bima Corporation underwritten 100% Public Property Non-life Business and 50% of it was equally distributed among the private sector non-life insurance companies. Now As per Insurance Corporation Act 2019, under section-16, Sadharan Bima Corporation has solely right to underwrite 100% Public Property Non-life Business and 50% of Business is to be equally distributed among the private sector non-life insurance companies who, on the other hand, compulsorily re-insure half of their re-insurable business with the SBC.[2] SBC has recently been very active in capturing all public sector insurance business, and experts say that this move will definitely enhance the revenue of the corporation.
