Report on phoenix insurance company & insurance industry analysis

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Letter of Transmittal
November 11, 2013
Md. Rashedur Rahman
Dept. of International business
University of Dhaka.
Subject: Phoenix Insurance Company LTD and non-life insurance industry
analysis
Dear Sir,
Here is an in- depth qualitative study of Phoenix insurance company LTD and other non-
life insurance industry ,which you authorized on September,2013 .
We have researched the status of Phoenix Insurance company in industry business and their
main competitors in Bangladesh. The study not only reveals the scope and opportunities to
make more profit in insurance business but also reveals the opportunity to fulfill social
responsibility. This study disclosed the lacking as well as opportunities to do business in
Bangladesh on non-life insurance sectors.
In light of these findings , the report identifies several strategies that can be taken to
give the insured more benefit .
Thank you for authorizing this research. We look forward to working on these types of
research again .
Sincerely yours,
Group Name: Troopers.
X
M a h fu za C h o w d h u ry
X
M a h b o o b E la h i No o r
X
Sh amon a Rattila
X
Nizamuddin Alamgir
X
Afsan a Arifin M o n ia
X
Salau d d in B isw as

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Acknowledgement
We are very much thankful to our honorable lecturer Md. Rashedur Rahman for providing all
facilities and support to meet our report requirements. We would like to take opportunity to
express our humble gratitude to the following persons whose constant guidance and
willingness to share their vast knowledge made us understand this report and made us
possible to go in depth of the assigned task.
1) Md.Rafiqur Rahman .
Company Secretary, Phoenix Insurance Co Ltd.
Masters in Accounting ,University of Dhaka
C.A (Inter) , LL.B .

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Table of Content
Chapters Name and Contents Page No.
List of Figures 04
Executive Summary 05
Chapter 01: Introduction 06-10
1.1) Background 06
1.2) Objective of The Study 07
1.3) Methodology of The Study 08
1.4) Scope of The Study 08
1.5) Limitations of The Study 09
1.6) Organization of The report 09
Chapter 02: External Analysis 11-22
2.1) Environment Analysis 11
2.2) Porter’s 5 Forces Analysis 14
2.3) Driving Forces of The Industry 16
2.4) Key Success Factors 20
2.5) Competitors Analysis 22
Chapter 03: Internal Analysis 27-35
3.1) History of the Company 27
3.2) Current Services 28
3.3) SWOT Analysis 29
3.4) Current Business Strategy 30
3.5) Financial Analysis 31
3.6) Competitive Strength Assessment 35
Chapter 04: Conclusion and Recommendation 37-39
4.1) Brief Summary of The External and Internal Analysis 37
4.2) Strategic Issues, Challenges, Problems and Opportunities 38
4.3) General Recommendation 39
Chapter 05: Action Plan 40-44
5.1) Short Term Action Plan, Draft Budget and Impact 40
5.2) Medium Term Action Plan, Draft Budget and Impact 43
5.3) Long Term Action plan, Draft Budget and Impact 44
Bibliography 46-47
Appendix 48

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List of Figures
Figure 1: Macro environment..................................................................................................11
Figure 2: Porter’s Competitive Forces....................................................................................14
Figure 3: GDP Growth Rate....................................................................................................19
Figure 4: Literacy Rate of Bangladesh....................................................................................20
Figure 5: Products...................................................................................................................22
Figure 6:Paid-up Capital (chart) ............................................................................................23
Figure 7:Paid-up Capital (graph) ...........................................................................................23
Figure8: Gross Premium (chart).............................................................................................24
Figure 9: Gross Premium (graph)...........................................................................................24
Figure 10: Net Premium (chart)..............................................................................................25
Figure 11: Net Premium (graph).............................................................................................25
Figure 12: Total Assets (chart)................................................................................................26
Figure 13: Total Assets (graph)...............................................................................................26
Figure 14: SWOT Analysis ......................................................................................................29
Figure 15: Paid-up capital chart.............................................................................................31
Figure 16: Profit Chart............................................................................................................32
Figure 17: Investment chart.....................................................................................................33
Figure 18: Dividend.................................................................................................................34

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Executive Summary
Bangladeshi insurance industry is highly competitive industry. As insurance companies face
high demand for their insurance policies the growth of this industry is remarkable. Between
life and life insurance policies life insurance is very much popular as the personal insurance
and non-life insurance is very much popular among the business industries. Bangladeshi
business industries very often face many hazardous situations like political chaos, natural
disasters etc .So the demand for non-life insurance companies is ever growing. In order to
provide the firms a qualitative service insurance companies must take certain policies that
will give the insured more assurance as well as to the society.

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Chapter 01: Introduction
1.1 Background
From a global point of view we can say that in the last couple of years we have seen some
significant growth in the insurance industry worldwide. Today people are becoming more and
more concern and aware about insurance. Here are a few highlights of our findings
We have observed that potential growth opportunity exist in the Asia-Pacific region due to
developing customer base and market. In Europe we have seen that firms are trying to
identify growth prospects while managing risks related to capital and investments. Growth
prospects are highest in the emerging markets of Latin America.US insurers are trying to
rethink their strategies because of demographic, macroeconomic and regulatory pressures.
In the context of Bangladesh we can say that the people are more aware about insurance and
its importance than they were in the past. Several acts have been passed by the government of
Bangladesh for the betterment and development of the insurance industries. We also observe
that the number of insurance companies both government and non government have
increased. The country is showing huge prospects. It can be said that the insurance industry is
an emerging market for Bangladesh.
In our report we focus on phoenix insurance company Ltd. it is a Bangladeshi insurance
company operating various types of insurance programs. The company has 31 branches
located all over Bangladesh and provides online insurance service through most of its
branches. We tried to conduct an overall analysis of this company which includes both
internal and external analysis of the company. We tried to determine the current situation of
Phoenix Insurance Company based on its financial environment, performance, indicators,
existing competitors and its current challenges. We have also tried to focus how the different
environment affects its activities and existence. Based on our findings we tried come up with
recommendations that we felt it was necessary and final conclusion.

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1.2 Objective of The Study
Broad Objective: The broad of objective of this report is to develop a primary concept
and understanding about the insurance industry of Bangladesh, how this industry is being
regulated, laws and acts used to control the industry and the various insurance companies that
are in operation.
Specific Objective: Specific objective of the report is to know about the following-
 Environment Analysis: We have analyzed the different aspects of Macro-
Economic Environment, Legal and Regulatory Environment, Demographic
Environment, Technological and Innovation Environment, Political Environment, and
Social and Cultural Environment that are related with the insurance industry. We have
studied to what extent the insurance industry reacts to changes to these environments
 Porter’s 5 Forces Analysis: Using Michael E. Porter’s 5 forces (threat of new
entrants, power of suppliers, power of buyers, threat of substitutes, competitive rivalry
within the industry) which shapes an industry, we tried to implement these forces in
our insurance industry analysis to determine the effects these forces have over the
insurance industry.
 Driving Forces of the Industry: We tried to identify the different driving forces
of our insurance industry that may hinder or create opportunity for the insurance
companies. Our findings in this area include Long Term Industry Growth, Emerging
New Internet Capabilities and Applications, Technological Change, Changing
Societal Concerns, Attitudes and Lifestyles, Regulatory Influences and Government
Policy Changes, Higher GDP, Increased Population, New Business’s Individual
Insurance, Low per Capital Income and Illiteracy. These forces have been explored in
details in the report.
 Key Success Factors: Key success factors are those factors that can help the
insurance industry to develop and mature. The presence of these factors in a country
facilitates the operation and regulation of the insurance industry. In the context of
Bangladesh the key success factors that we thought had a substantial impact on our

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insurance industry includes Technology, Skills and Capabilities, Marketing related
key success factors and Product or Service diversification.
 Competitors Analysis: We have conducted our competitors based on their
strategy, product, and their financial environment. For Phoenix Insurance Company
Ltd. we have chosen United Insurance Company Ltd, Agrani Insurance Company Ltd.
And Green Delta Insurance Company Ltd as close competitors. The reason for
choosing these 3 companies is because their financial situation is quite similar to our
selected company which is phoenix. In our analysis we found out Green Delta
Insurance Company Ltd. is in a dominant position compare to the other 3 companies
and Phoenix Insurance Company Ltd. holds the 2nd
positing.
1.3 Methodology of The Study
In preparing the report we have collected information from the official website of Phoenix
Insurance Company LTD and from the ‘Annual Report’ of the Phoenix Insurance Industry
LTD. that has been provided by the secretary of the Phoenix insurance co. ltd. Md.Rafiqur
Rahman.
1.4 Scope of the Study
In preparing this report we try to cover these topics :
1) External analysis of non-life insurance companies of Bangladesh.
2) Internal analysis of Phoenix Insurance Company LTD.
3) Action Plan with budget that includes short, medium and long term plan.
4) Recommendations for non-life insurance companies.

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1.5 Limitations of The Study
The report is prepared on Phoenix Insurance Company Ltd. We have tried our best to prepare
this report as efficiently as we can. Though we have tried our utmost, in some cases we
couldn’t do it properly. There is some lacking in our report.
The problems or the limitations we have faced during preparing this report:
.
 We could not find information in the websites of the insurance company.
 Our time was limited. We could not find more information in this limited time.
 Lack of necessary information in the journals and official publications
of insurance companies.
We have tried to overcome our limitations in preparing this report. Overall we have made our
best effort to make this report informative and constructive
1.6 Organization of The Report
The report is organized under different chapter. Each chapter depicts a specific part of the
report.
Introduction of the Report: In this chapter a concise background of the report is given.
Broad and specific objectives, methodology of the study and limitations concerning the report
is written in this chapter.
External Analysis: This part describes about the macro-environment of the company,
driving forces that positively and negatively affects the company, important factors behind
the company’s success and company’s situation among other competitors.
Internal Analysis: In this chapter a short history and description of the company is given.
This chapter specifically highlights the financial prospects of the company, its competitive
strength and social responsibilities.

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Conclusion and Recommendation: The whole report is briefly discussed in this chapter as
well as the company’s issues, challenges, problems, opportunities. Here a general
recommendation is given both in the highlights of external and internal environment.
Action Plan (with budget): Specific short, medium and long term action plan along with
the draft budget proposal in the focus point of this chapter.

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Chapter 02: External Analysis
2.1 Environment Analysis
External environment affects a company in a great deal. The elements of external
environment are mainly divided into five categories. These categories are shown and
discussed below in the context of Bangladesh.
The elements of an insurance company’s Macro-environment.
Figure 1: Macro environment
Insurance
Company
Economic
Environment
Legal
Environment
Demographic
Environment
Technological
Environment
Political,
social and
cultural
environment

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Economic Environment: Economic structure, rules and policies shapes a company.
The GDP rate, interest rate and per capita income of Bangladesh affect the insurance industry
working here. First comes GDP rate, the people of Bangladesh is living under the poverty
line. Though we are a developing country but our economic development is very low. This
low economic development and poverty reflects poorly on our GDP. It is quiet impossible for
the poor people of Bangladesh to afford insurance. So, poor economic conditions work
against the development of insurance industry.1
Then again in the recent years the GDP of our country has been in the increase for the last
couple of years. This increase in GDP increases the per capita income of the people, increase
in per capita income improves the living standard of life and finally to maintain the newfound
life standard people incline towards insurance. Thus increasing economic development favors
the insurance industry.2
Interest rate also affects insurance industry. Insurance companies invest a large portion of the
insurance premiums into further investments. So, the income generating from this and of
investment is highly dependent on the interest rate. If interest rate is low the return from
investment will also be low. Thus low interest rate creates obstacle in the way of income and
prevents the growth of insurance companies.
Legal Environment: Rules and regulations regarding insurance industry is the focus
point of this environment. To promote the insurance industry the government has replaced the
1938 Insurance Act with the 2010 Insurance Act. Under The Insurance Act, 2010 the
Insurance Development and Regulatory Authority (IDRA) has been established in March,
2010.
IDRA now dictates all the rules and regulations regarding life and non-life insurance
companies in Bangladesh. Till 2011 IDRA has finalized seven regulations and three rules.
These rules and regulations have been sent to Banks, Financial Institutions Division and
Ministry of Finance for approval. So far two regulations were received.
1
http://www.scribd.com/doc/20131763/overall-insurance-company%E2%80%99s-problems-and-prospects-in-Bangladesh
2
http://www.tradingeconomics.com/bangladesh/gdp-growth

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“The preamble of the IDRA Act, 2010 states that the Act has been enacted to
supervise the business of insurance industry, to ensure the protection of the interests of
insurance policyholders and prospective policyholders and beneficiaries under the policy and
to promote orderly growth and regulation of the insurance industry.” (M Shefaque Ahmed,
The State of Insurance Industry in Banglaesh)
Demographic Environment: Population of a country determines the course of
business in a distinctive way. Demographic attributes like population size, age, literacy etc. is
important macro environmental components for insurance industry.
In Bangladesh the population density is very high. In general view that is spotted as a
negative situation. But growing population can be good for insurance industry because more
population means more scope for selling insurance. Though most of the people of
Bangladesh are not aware of insurance but proper promotion can change the scenario.
Age is a very important matter for life insurance. Generally, yough people are not interested
in buying life insurance. As people age, they tend to rely more and more on life insurance
products for their retirement.
In Bangladesh the knowledge of insurance is scarce among people. Most of the rural people
don’t even know about insurance. People are not aware of the benefits from the insurance
policy and a great number of people believe that insurance business is nothing
but cheating and assume that insurance policy is quite unnecessary. This negative attitude
from the people is lessening the importance of absorbing insurance policy in a large extent.3
So, Insurance companies should take necessary promotion steps to create awareness among
the people
Technological Environment: The advancement of technology has helped field of
insurance business. Now the operation of insurance companies is maintained by computers.
Financial calculations, investment job distribution everything is done with the help of
technology.
Political, social and cultural environment: In Bangladesh the political situation is a
vastly important macro environmental factor. In Bangladesh political instability is very
3
http://www.scribd.com/doc/20131763/overall-insurance-company%E2%80%99s-problems-and-prospects-in-Bangladesh

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common. And this instability hinders the growth of insurance companies. Moreover
government policy and preferences is also very important to operate insurance business.
2.2 Porters 5 forces Analysis
Michael E. Porter in his book “Competitive Strategy: Techniques for Analyzing Industries
and Competitors” discussed 5 forces that shapes an industry or market. Now we will look at
how these forces influence the insurance environment.
Figure 2: Porter’s Competitive Forces
Source: www.investopedia.com
The Threat of New Entrants: According to Porter the threat of new entrants means
how easily one can enter a particular industry. So from the insurance industry’s point of view
it means to what extent the insurance industry is accessible for those who want to do business
there.4
4
http://www.investopedia.com/features/industryhandbook/porter.asp

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Some factors (known as barriers to entry) work to impede the entrepreneurs to start a
business. We can explain the threat of new entrant of the insurance industry by analyzing the
following factors.
I. Existing loyalty to major insurance brands: There are quite a few already well
established insurance companies in Bangladesh which are conducting their business
and they are quite popular among the mass population. For example-American life
insurance company, Delta life insurance company, popular life insurance company to
name a few. So it will be difficult but not impossible for some new emerging
entrepreneurs to engage themselves in the insurance industry.
II. Scarcity of resources: This is another factor influencing the threat of new entrants.
Poor economic condition is considered to be the main reason for poor life insurance
penetration in Bangladesh. Most of the policyholders cannot continue their policies
because shortage of fund which causes Scarcity of resources to the insurer.
III. Government restrictions or legislation: The government of Bangladesh has
reformed the financial sector in the 1990’s. In order to promote the insurance
industry of Bangladesh the government has undertaken some reforms program in the
insurance sector. The government passed the Insurance Development and Regulatory
Authority Act, 2010 in the Jatiya Sangshad for establishing the Insurance
Development and Regulatory Authority (IDRA), this act includes some favorable
aspects which facilitate the efforts of new entrepreneurs who are trying to enter the
insurance industry.
Power of Suppliers: Power of suppliers means how much pressure suppliers can place on
a business. If the suppliers has a potential impact to influence an insurance company’s
productivity or continuity then it has substantial power. Here suppliers are those parties who
provide capital assistance to the insurance companies. Suppliers also facilitate the purchase of
insurance and they provide services to the insurance company as well as the consumer that

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facilitate the whole insurance purchase and selling process. One threat of suppliers is that
they sometimes lure away human capital.5
Power of Buyers: This means to what extent the clients or customers of the insurance
company are influencing the business of the company. One individual client doesn’t affect
the activities or profitability of the insurance company compared to large clients. Large
corporate clients have a lot bargaining power with the insurance company. For example large
clients such as airlines and pharmaceutical companies pay millions of dollars a year in
premiums to the insurance company. The insurance company tries to hold onto these valued
customers by offering them insurance policies and contract favoring their (clients) interests.
Availability of Substitutes: There are plenty of substitutes in the insurance industry.
Most large insurance companies offer similar types of services. Most of the insurance
companies provide auto, home, commercial, health or life insurance. In some areas of
insurance, the availability of substitutes is few and far between. So in order to penetrate the
insurance industry and capture attention of the customers a new insurance company can
concentrate on providing services that are different from the others.
Competitive Rivalry: The Bangladeshi insurance industry is a highly competitive
industry. There prevails a fierce competition in the non-life segment of the insurance
industry, the shares of the private insurance company is on the rise. Insurance has become
similar to product or commodity. Bangladeshi insurance Companies are rivaling each other
over the services they provide.
2.3 Driving Forces of the Industry
In the context of Bangladesh insurance industry, there are several major driving forces which
can lead to growth or hinder the potentiality of the insurance industry.
5
http://www.investopedia.com/features/industryhandbook/porter.asp

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Long Term Industry Growth: We have seen remarkable growth in the insurance
industry in the last couple of years. Life insurance industry particularly enjoyed a very good
spell. The penetration ratio of the life insurance industry was 0.8 percent in 2010. This
penetration ratio measures the level of Insurance activity relative to the size of the economy
in Bangladesh.
“Average insurance density (per capita premium income) in dollar terms for life insurance
in Bangladesh was US Dollar 5.5.only”
(M Shefaque Ahmed, The state of insurance industry in Bangladesh)
Therefore we can say that there is huge opportunity for the growth in the insurance industry
of Bangladesh.6
Emerging New Internet Capabilities and Applications: New and emerging life
insurance companies of Bangladesh are trying to gain competitive advantage over their
competitors by providing internet based services and applying computer based software and
applications to conduct their business. Recently nine companies got approval from the
insurance regulator and they are pursuing technological and internet based communication
with their consumers, suppliers and all other related parties. This advanced approach surely
will have a positive impact on their business. Many of these programs will help to bring
closer the companies with their clients. Clients will have a greater access to information and
the latest status of policies brought to them by the companies. Company and insurance related
data will be accessible to the customers over the internet from any location.
GM Kibria, Chairman of the NRB Global, a newly approved life insurance company, told the
Financial Express (FE): "We've procured the latest insurance programs to provide the best
services to the clients. Customers will get speedy services in relation to the disbursement of
bonus and settlement of claims."
Technological Change: Now a day’s insurance companies are trying to develop their
own information technology (IT) department. These insurance companies are providing IT
related training and development programs for their employees and customers. These
6
http://www.thefinancialexpress-bd.com/index.php?ref=MjBfMDRfMTJfMTNfMV81MV8xNjYxMjI=
The state of insurance industry in Bangladesh, M Shefaque Ahmed

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programs will make customers more aware of the new opportunities and services that they
can enjoy from their respective insurance companies. Today companies are trying to adapt a
more technological and advanced way of conducting their marketing, underwriting,
settlement of claims, reinsurance activities.
A senior official at the Sonali Life Insurance told the FE: "We're installing ERP, a life
insurance related computer software of Microsoft."
Changing Societal Concerns, Attitudes and Lifestyles: Religious attitude of the
people also stands against efficient insurance. The religious people believe that the future is
uncertain, it is in the hand of Allah and they do not think it necessary to buy life insurance
policy. Insurance awareness is poor. Agents are not skilled enough. These agents cannot
perform their job properly to make the people aware of life insurance. Bangladesh has less or
no disposable income. A huge chunk of the actual income is spent for their livelihood
purposes which in turn affects their lifestyle. Thus they are left with little amount, which may
not be sufficient for the payment of premiums. This factor discourages many to buy life
insurance policy.
Regulatory Influences and Government Policy Changes: The Government of
Bangladesh has undertaken some policies which advocate the insurance industry’s growth
and a promising future. The government of Bangladesh has been trying to achieve some key
objectives which will help the insurance industry to flourish. In the near future the insurance
industry of Bangladesh will become an integral part of the financial sector of Bangladesh.
The Insurance Act 2010 and Insurance Development and Regulatory Authority Act, 2010
have been enacted to make these objectives more feasible.
“IDRA Act, 2010 states that the Act has been enacted to supervise the business of insurance
industry, to ensure the protection of the interests of insurance policyholders and prospective
policyholders and beneficiaries under the policy and to promote orderly growth and
regulation of the insurance industry”
(The state of insurance industry in Bangladesh, M Shefaque Ahmed)
Higher GDP: The GDP of our country is increasing than the previous year’s which results
in increase of per capita income. So this growing GDP and income works in the advantage of
the insurance companies.

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Figure 3: GDP Growth Rate
Source: WWW.TRADINGECONOMICS.COM |BANGLADESH BANK
Increased Population: Big opportunities lie ahead for the insurance companies as the
population of our country is increasing day by day. Although most of the people of our
country live under extreme poverty level and want to avoid insurance, policy number of
potential policy holders in Bangladesh is growing with growth of the population.
New Business’s Individual Insurance: There are so many new businesses starting
every day and the manufacturing sector is one of them. Every business is insured under an
insurance company to protect its company from any kind of accident. So we can say the rise
in the number of New businesses facilitate the growth of the insurance industry.
Low per Capital Income: Poor economic condition is considered to be the main reason
for poor life insurance penetration in Bangladesh. The country has a very low per capital
income and over 50% of our total population lives below the poverty line.
Illiteracy: Mass illiteracy is another factor that adversely affects the marketing of
insurance. About 70% of the population is floating in the sea of ignorance. Here in this chart
we can see the literacy rate of Bangladesh. Compared to developed and other developing

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nations this is very low and thus this low rate of literacy among the population is one of the
major causes that leads people to think that the insurance is deception.
Figure 4: Literacy Rate of Bangladesh
Source: Bangladesh Bureau of Statistics (BBS).
2.4 Key Success Factors of the Insurance Industry
The key success factors (KSF) means factors which helps the insurance companies to be
financially successful and improve their productivity and standard of services for their
customers.
Technology Related KSFs: Technology related key success factors include
technological improvements on some particular expertise of the insurance company. This
includes internet applications, mobile communication and other state of the art high tech

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innovations. We have already discussed these factors in the driving forces of the industry
part.
Skills and Capability related KSFs: Today most of the insurance companies provide
training facilities for employee development. These training programs helps employees to
better understand the company’s objectives, policies, mission and vision. Spread of insurance
business in Bangladesh failed for lack of proper training for the employees. So in order to
increase high productivity the insurance companies need to develop some good recruiting
programs which will attract skilled university graduates to make a career in the insurance
industry.
Marketing Related KSFs: Insurance companies should effectively use the media to
send the right message regarding insurance to the people. Still a large portion of population is
completely unaware about the insurance policy. The insurance company should provide
adequate information in the company’s website which can answer the question of the various
customers. Undertaking of motivational programs can also be deemed as an effective
marketing effort.
According to Green Delta Life Insurance Company the people of our country are not
much motivated by the company to take insurance policy for safeguarding themselves against
any kind of risk.
Product or Services Diversification: Insurance not only works as a tool of coverage
but also work as an instrument of savings. Mixing risk coverage with savings give
opportunity for innovative product designing resulting in product or service diversification.
Insurance companies can include new products or services that can promote new insurance
contract. Companies can identify new business or personal threats for which they can provide
insurance contracts promising to protect from those perils. 7
7
http://www.scribd.com/doc/20131763/overall-insurance-company%E2%80%99s-problems-and-prospects-in-
Bangladesh

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2.5 Competitors Analysis
Our selected company is Phoenix Insurance Company Ltd. And its competitors are United
Insurance Company Ltd, Agrani Insurance Company Ltd. And Green Delta Insurance
Company Ltd. At first we are going to show the products offered by Phoenix Insurance
Company and its competitors.
Phoenix Insurance
Company Ltd.
United Insurance Company Ltd Agrani Insurance
Company Ltd.
Green Delta
Insurance
Company Ltd.
 Fire Insurance
 Marine
Insurance
 Motor
Insurance
 Engineering
Insurance
 Cyclone
Insurance
 Flood
Insurance
 Earthquake
Insurance
 Riot & Strike
Damage
Insurance
 Miscellaneous
Insurances
 Overseas
MediClaim
Insurance
 Marine Insurance Policy
 Marine Cargo
 Marine Hull
 Fidelity Guarantee Policy
 Industrial All Risk Policy
 Contractor’s All Risk
Policy
 Consequential Loss
 Cash-in-Premises
 Cash-on-Counter
 Cash-in-Transit
 Cash-in-Safe
 Boiler & Pressure Vessel
Policy
 Motor Insurance Policy
 Machinery Breakdown
Policy
 Product Liability Policy
 Fire Insurance Policy
(including Flood, Cyclone,
& Earthquake coverage)
 Deterioration of Stock
Policy
 Personal Accident Policy
 Workmen’s Compensation
 Health Plan Scheme
 Overseas MediClaim
Coverage
 Dread Disease Policy
 Householders
Comprehensive Insurance
 Fire
Insurance
 Marine
Insurance
 Travel
Insurance
 Health
Insurance
 Burglary
Insurance
 Contractors
All risk
policy
 Cash-In-
Transit and
Cash-In-
Safe
 All Risk
Insurance
 Fire & Allied
Perils
Insurance
 Marine
Cargo &
Hull
Insurance
 All types of
Aviation
Insurance
 All types of
Automobile
Insurance
 All types of
Accident,
Miscellaneou
s & Liability
Insurance
 All types of
Engineering
Insurance
Figure 5: Products

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Secondly we are going to discuss about the financial highlights of the four companies to
determine their compititivenes with each other. We will evaluate financial data of 5 fiscal
years. (2006-2010)8 9 10 11
Paid-Up Capital (in millions)
Company Name 2006 2007 2008 2009 2010
Phoenix Insurance
Company Ltd. 103.36 134.37 161.24 196.71 245.89
United Insurance
Company Ltd
78.00 100.00 250.00 300.00 330.00
Agrani Insurance
Company Ltd.
150.00 165.00 181.50 199.65 219.61
Green Delta Insurance
Company Ltd.
108.00 151.20 151.20 204.12 408.24
Figure 6:Paid-up Capital (chart)
Now, a graphical representation of the above data for further analysis-
Figure 7:Paid-up Capital (graph)
Here we see, all of the companies paid up capital were approximate in 06. Phoenix, green
delta and Agrani were in close proximity in 2006-09. United was lower than others in the
beginning but increased its paid-up capital(250) in 2008. In 2010 Green delta’s paid up
capital took a huge leap from 204.12 to 408.24 and surpassed all the others. Thus in case of
paid-up capital Phoenix is in third position among its four compititors.
8
http://www.phoenixinsurance.com.bd
9
http://www.unitedinsurance.com.bd
10
http://www.agraniins.com
11
http://www.green-delta.com
0
100
200
300
400
500
2006 2007 2008 2009 2010
InMillionsTk.
Paid-Up Capital
Phoenix Insurance Company Ltd.
United Insurance Company Ltd
Agrani Insurance Company Ltd.
Green Delta Insurance Company
Ltd.

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Gross Premium(in millions)
Company Name 2006 2007 2008 2009 2010
Phoenix Insurance
Company Ltd. 315.23 346.30 361.00 387.30 454.01
United Insurance
Company Ltd 180.05 208.01 221.68 255.41 295.16
Agrani Insurance
Company Ltd. 174.22 192.84 257.54 285.67 264.47
Company Ltd. 631.60 762.7 1109.25 1400.75 1601.64
Figure8: Gross Premium (chart)
Figure 9: Gross Premium (graph)
United and Agrani started almost in the same place in 2006 and though out the five years
these two companies’ gross premium were almost the same. Phoenix started a little higher
than United and Agrani and maintained a steady upraise over the five years. Green delta’s
gross premium is off the chart in comparison with the other three. Green delta started from
631.60 and ended in 1601.62, a huge upraise can be noted in this company’s gross premium.
Here, phoenix insurance positioned second among the four.
0
200
400
600
800
1000
1200
1400
1600
1800
2006 2007 2008 2009 2010
InMillionsTk.
Gross Premium
Ltd.

25
Net Premium (in millions)
Company Name 2006 2007 2008 2009 2010
Phoenix Insurance
Company Ltd.
201.99 213.84 218.06 260.19 280.53
United Insurance
Company Ltd 90.96 95.36 104.14 112.51 154.43
Agrani Insurance
Company Ltd. 107.22 110.50 139.56 140.41 163.48
Company Ltd. 267.00 327.20 451.02 627.21 726.69
Figure 10: Net Premium (chart)
Figure 11: Net Premium (graph)
Net premium is pretty much the same like the gross premium. United and Agrani were in
close proximity with each other over the five years. Phoenix stands higher than the two and
increased little by little throughout the years. Green Delta again showed the highest Net
Premium among the four companies.
0
100
200
300
400
500
600
700
800
2006 2007 2008 2009 2010
InMillionsTk.
Net Premium
Ltd.

26
Total Assets (in millions)
Company Name 2006 2007 2008 2009 2010
Phoenix Insurance
Company Ltd.
458.642 495.19 598.95 697.90 780.42
United Insurance
Company Ltd 414.23 770.41 725.87 844.96 948.64
Agrani Insurance
Company Ltd. 373.19 355.20 405.08 461.22 543.57
Company Ltd. 1148.80 1227.90 1698.44 2872.50 3433.07
Figure 12: Total Assets (chart)
Figure 13: Total Assets (graph)
Initially total assets of Phoenix, United and Agrani were approximate to each other. No major
deviation can be seen between United and Agrani over the time. However, Phoenix’s total
assets were increased during 2007-2008 and faced a downward shift in 2009. Green Delta, as
always showed a booming number of total assets.
After analyzing the Paid-up Capital, Gross Premium, Net Premium and Total Assets of
Phoenix Insurance Company Ltd, United Insurance Company Ltd, Agrani Insurance
Company Ltd. and Green Delta Insurance Company Ltd, we have come to conclusion that
Phoenix Insurance Company stands in the second position among the four.
0
500
1000
1500
2000
2500
3000
3500
4000
2006 2007 2008 2009 2010
InMillionsTk.
Total Assets
Ltd.

27
Chapter 03: Internal Analysis
3.1 History of The Company
The Phoenix Insurance Company is very well known and one of the first leading insurance
company in Bangladesh which commence its journey of business on November 27, 1986.
Maj. Gen. Abdul Mannan Siddiqui was the founder of this company along with a group of
entrepreneurs. Its paid up capital is taka 30 Million. Now Mr. Dean Mohammad is the
holding the responsibility as the chairman of this prominent insurance company.
After getting certificate on December 1, 1986 and registered with the department of insurance
on December 4, 1986 it has started its journey in full swing. The company’s headquarter is
situated in Dhaka.
This company is maintained by a highly proficient board of directors and management team.
On April 21, 1990 the company first announced its first dividend and issued prospectus on
July 28, 1994. With the slogan “service for security “ the company listed in Dhaka Stock
Exchange (DSC) on December 4,1994.It was listed in DSC under the insurance act of 1938.
On December 5 it launched trading of shares in the DSC. Each share was valued at taka
440.On October 25, 1995 the first AGM (Annual General Meeting) of this company took
place at Sonargaon Hotel Dhaka. In this meeting all the internal and external members of this
company like sponsors, shareholders, directors, clients were present.
This company issued bonus share on July 1, 2003 and on 2004 it signed an agreement with
CDBL.
The company it very concern about its product and services. It has its own strategies. Now
this company is operating in 31 branches.14 of them are in Dhaka city and rest of them are
outside of Dhaka.

28
3.2 Current Services: Fire Insurance: This insurance gives safety against different
types of incident caused by fire. Fire can partially and fully destroy factory, mills, company,
households etc. They normally pay the equal amount of money which represents the amount
of losses. This insurance also cover riot and shrike damages losses due to malicious acts and
damages because of natural disaster like earthquake fire.
Motor Insurance: Motor insurance include three types of vehicles. They are-
1) Private Car
2) Commercial Vehicle
3) Motor Cycle
This insurance has two categories:
1. Act Liability Policy Form (third party): A common policy form for all types of
vehicle.
2. Comprehensive Policy Form: Separate policy forms are used for private vehicles.
It consists of two sections-
I. Section 1: This is own damage section that covered the loss of the insured vehicle.
II. Section 2: Act liability section that covers the liability of the insured, as per Motor
vehicle Amendment Act, 1991.
Marine Insurance: This marine insurance gives coverage to import all goods from
abroad and transport risks within the country. This coverage includes risks that are associated
with the transportation.
Hull Insurance: This policy gives coverage for vessels and total loss of the package.
Engineering Insurance: This insurance policy includes- The contractors all risk
insurance, Erection all risks, Machinery breakdown insurance, Contractor’s plant and
machinery insurance, Electronic insurance, Boiler and pressure vessel insurance.

29
Cyclone Insurance: Cyclone insurance policy gives coverage of two losses- residential
building coverage and contents coverage.
The Phoenix Insurance company covers the losses that can be made because of flood. It
covers the losses such as residential building coverage, commercial building coverage,
contents coverage, renter’s coverage.
Earthquake Insurance: This insurance is purchased to cover the direct losses which are
created by earthquake. This policy is purchased with the standard fire policy by paying
additional premium.
Riot and Strike Damage Insurance: This policy is purchased to fight against the
losses or damages due to risk and damage.
Miscellaneous Insurance: This insurance covers fidelity guarantee, cash in transit, cash
in counter, third party liability, peddle cycle, peoples personal accident etc.
3.3 SWOT ANALYSIS
Figure 14: SWOT Analysis
STRENGTHS WEAKNESSES
1)Highly qualified professionals
2)Skilled and dedicated stuff
3)Highly efficient management team
4)Various range of services
1)Weak online presence
2)Unavailability of public information
3)Unavailability of company information
4)weak company branding
OPPORTUNITIES THREATS
1)Grab the market with new innovation
2)Diversification
3)Opportunities to become market leader
4)Utilizing IT-driven initiatives
1)Highly competitive market
2)Threats of new entrants
3)New tie-ups by competitors

30
3.4 Current Business Strategy
Business Level Strategy: They are working to prove themselves as innovative,
profitable and customer oriented company. They are trying to improve administrative and
organizational configuration so that they can create the platform for the best practices of
corporate governance.
Corporate level strategy: They undertake over periodic reviews of the company and
compare with the current situation of the company and other competitors.
Functional level strategy: In every stage several departments concentrate in their own
departments and try to get the best output. This insurance company provides training to
implement the business level strategy perfectly.12 13
Phoenix insurance company has a stable financial status. We will analyze the major financial
sectors such as paid-up capital, profit, investment, dividend, credit rating etc. This analysis
will show that the company is doing well in the industry but it has chance to improve its
activities. From 2008 to 2012 the company has progress in all of its sectors.
12
http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.phoenixinsurance.com.bd%2Fphoenix%2Findex.php%3Foption
%3Dcom_content%26view%3Darticle%26id%3D54%26Itemid%3D30&h=2AQE1A7BO
13
http://www.phoenixinsurance.com.bd/phoenix/

31
3.5 Financial Analysis
Paid up capital: Paid-up capital is the amount of company capital that has been funded by
shareholders. Paid-up capital can be less than a company's total capital because a company
may not issue all of the shares that it has been authorized to sell. Paid-up capital can also
reflect how a company depends on equity financing.
When we find the rate of increase in paid-up capital, investment & profit, we applied a simple
rule of finance.
The previous year’s amount has been subtracted by the following years amount & the
outcome is divided by the amount of the years which we are going to find.
Thus the rate of increase of paid-up capital= { (The amount of capital in 2009- the amount of
capital in 2008)/ the amount of capital in 2008)}*100 = 22%
It is shown on the following table:
Year Amount
(million)
Year Amount
(million)
Rate of
increase(percentage)
2008 161.24 2009 196.71 22
2009 196.71 2010 245.89 25
2010 245.89 2011 307.36 25
2011 307.36 2012 322.36 5
Figure 15: Paid-up capital chart
-20
-10
0
10
20
30
40
50
60
70
2008-2009 2009-2010 2010-2011 2011-2012

32
Profit:
The company’s profit earning ability is sustainable. Almost every year profit is enhanced.
year Profit (million) Increase rate (%)
2008 613.81
2009 754.68 23.26
2010 1157.3 53.34
2011 1134.2 2 (decrease)
2012 1459.5 28.6
Now, the profit is shown in the following diagram for further analysis-
Figure 16: Profit Chart
-20
-10
0
10
20
30
40
50
60
70
2008-2009 2009-2010 2010-2011 2011-2012
Profit Chart

33
Investment:
Phoenix insurance company is maintaining a good amount of investment. Every year it
experiences increase in investment. This investment ensures the earning a good profit.
Year investment Rate of increase (%)
2008 105.80
2009 110.53 4.47
2010 178.42 61.4
2011 192.57 7.9
2012 172.57 10.3 Decrease
Figure 17: Investment chart
-20
-10
0
10
20
30
40
50
60
70
2008-2009 2009-2010 2010-2011 2011-2012
Series1

34
Dividend:
Here again stable is the dividend rate. Though financial condition was not favorable in the
year of 2011 & 2012 because of the stock market crisis it earned a good profit & gave its
share holders satisfactory dividend.
Figure 18: Dividend
Credit rating:
Phoenix Insurance Company Limited was rated by credit rating information services limited
(CRISL) on the basis of financial statements as on the 31st
December, 2012. The summary of
the rating is presented below:
CPA rating (claim paying ability) A+
Dated of rating December 31, 2012
Outlook Stable
CRISL assigns A+. This has indicated good fundamental position.
2008
20%
2009
20%
2010
20%
2011
20%
2012
20%
Chart Title

35
3.6 Competitive Strengths Assessment
It is a process of 7 steps. It is needed to be assessed to find the strength of the firm has &
what are the other strengths necessary to compete in the competition. In the age of severe
competition firms cannot stay unattached by the rival companies. The company has strengths
like highly qualified professionals, skilled and dedicated stuff, highly efficient management
and various profit earning activities. While others company such as Agrani insurance
company gives 10 percent dividend, phoenix insurance company gives more than 20 percent
dividend.
Step 1- Identifying key success factors:
In this step the firm identifies the skill and competence available in the company. It
emphasizes the strengths it has and tries to achieve strengths where it has weakness. It
emphasizes on the potential factors that will help us to outperform its competitors. The
company becomes research oriented. It is highly committed to the task at hand. Phoenix’s
highly qualified stuff and the efficient management are key success factors.
Step 2-Assining the weights
The degree of importance of each of the key success factors might vary upon the nature of the
work. “Weight” reflects the degree of importance. Out of 1 and the facilitators are weighted.
Here in the case of Phoenix maybe highly qualified professionals can be weighted as 0.3,
highly efficient management 0.3 and incentives 0.4.
Step 3- Identifying direct competitors:
Phoenix has many powerful competitors. These competitors must assed very carefully. Green
Delta Insurance Company, Agrani Insurance Company, United Insurance Company are the
key competitors in this industry.

36
Step 4- Rating performance:
Since performance of the company on each of its key success factors might be different from
those of its closest direct competitors, it is also necessary to ““rraattee ppeerrffoorrmmaannccee”” of the
faculty on each key success factor as well as those of its closest competitors. The process in
rating the company’s performance on each maximum performance for each of the value is 1.
Step 5- Multiplying weight and rated performance:
In this stage company multiplies “Weight” of each factor with “Rated performance” of the
company / competitors’ each key success factor.
Step 6- Comparing performance with competitors:
On the basis of the score product of “Weight” and “Rated performance” in step 4, company
here compares relative performance of the company on each with those of competitors. The
comparison of relative performance enables the company to determine its degree of
superiority or inferiority as well as the existing gap between it and competitors’ that need to
be reduced.
Step 7-Formulating strategy:
According to the necessity of the situation company now take necessary arrangement.
Phoenix, for example, will emphasize on the training for the field worker if its number of new
policy decreases. It will also emphasize on the factors that is now giving a satisfactory
outcome.

37
Chapter 04: Conclusion and Recommendation
4.1 Brief Summary of The External And Internal Analysis
To conclude, we would like to mention that we have tried our best to collect all the relative
information’s about the Phoenix Insurance Company and placed those in a formal manner as
a formal report. Analyzing the above information we can state that Phoenix Insurance
Company is one of the leading insurance companies in Bangladesh. The performance of
Phoenix life Insurance company is getting better day by day. The study is about the internal
and external analysis of Phoenix Insurance Company. From the study we know about the
history of the company, their strategies, cash payments, claims meeting, premium collection,
service offered, products etc. Their current services are fire insurance, marine insurance, hull
insurance, motor insurance, engineering insurance, cyclone insurance, earthquake insurance,
riot and strike damage insurance, miscellaneous insurance etc. The study also has showed
that the factors related with the competitive Strength Assessment and corporate governance
and social responsibility analysis. The study has identified that the GDP rate, interest rate and
per capita income of Bangladesh affect the insurance industry. From this report we know how
the economic, legal, demographic, technological and political environment affects the
company activities. Here, we showed the five forces of competitive strategy and how it
affects the company performance. Its premium, assets, claims meeting, utilization of income
is getting better in last five years. After analyzing the paid-up capital, gross Premium, net
Premium and total assets of Phoenix Insurance Company Ltd and among its competitors, we
have come to conclusion that Phoenix Insurance Company stands in the second position
among the four.
Overall we can see that Phoenix Insurance Company is one of the progressive insurance
companies in Bangladesh for its servicing and its better performance.

38
4.2 Strategic Issues, Challenges, Problems And Opportunities
The Company Needs To Focus
It is very important to identify the strategic challenges so that firms able to concentrate on
area that gives them a lead over competitors and provide a competitive advantage. Here, we
showed the strategic challenges faced by PIC in implementation of current strategies. The
company follows business, corporate and functional strategies for their different operations.
There are elements of organizational operations that have a correlation with the strategies.
According to the study, the elements are; Recruitment of staff, Training, Motivation,
Compensation of clients and Communication. The competition in the insurance industry was
driven by various elements which included; Profitability, Market share, Customer
Satisfaction, competitive position etc. So, the main challenge of the company is improve
these sectors.
There are some problems the company should be focused on them. These problems are-
communication problems, high price of product, employee’s problem, problem in decision
making, small production unit etc. As it is a private limited company, the mid-level
employees cannot take any necessary decision without managing Director’s concern. Thus it
takes more time to take any decision.
PIC is a very progressive company and it has its own strategies. Analyzing the information,
we defined some opportunities the company can grab. These are- grab the market with new
innovation, diversification, opportunities to become market leader, utilizing IT-driven
initiatives.

39
4.3 General Recommendations
Phoenix Insurance Company is a well reputed leading insurance company of Bangladesh. It is
faced extreme competition from the new entrants and the other insurance company .While
working on the report we have developed some recommendations and suggestions for
Phoenix Insurance Company.
 The management of PIC should take corrective measures to reduce the financial risk,
performance risk, physical risk, social risk and psychological risk perceived by
customers.
 The number of products of PIC can be increased. Innovative product designing results
product or service diversification. PIC can include new products or services that can
raise interest of people.
 It should make aggressive marketing for its products. The company should give in
advertisement of Newspaper, Television, Magazines and Radio etc.
 This company’s premium should be increased. Some more schemes should be included
in PIC. Previous & current schemes should be more developed.
 The company should produce high quality product to keep close contact with customer.
Product price should be reduced for customer satisfaction.
 Training programs for employees should be undertaken by the HRM department, so that
the skills of the employees improved and can be fill up the forms more accurately.
 It is very important to increase client awareness in the insurance sector in Bangladesh.
In this purpose, PIC should take necessary steps through its large sales and business
development force to ensure a level of awareness among their clients throughout the
country.
 The transparency and accountability should be ensured in each and every step in the
implementation of the new Insurance Act 2011 in the entire departments of PIC. To
ensure a transparent environment in the company, the employees along with the
management and authorities should come forward with their best flexibility.
 The company can open Islamic Branches so that they can capture a large portion of the
population as the majority people of the country are Muslim.

40
Chapter 05: Action Plan
Phoenix insurance company wants to ensure maximum service to their policyholders to gain
maximum profit to their shareholders. Profit is not only the motivator towards ensuring the
policyholders services ,ensuring the responsibility towards the society and its people
above all towards the nation is their major concern .
In order to ensure those goals, missions, and visions , Phoenix insurance company must take
some action plan for short ,medium and long term .
5.1 Action Plan for 1 year or less than 1 year(Short-term)
1) Phoenix Insurance company should increase the number of experienced executives
on their management team compared to the number of board of directors.
2) Phoenix insurance co ltd. should specify their liability to certain points on such
insurances – Riot and strike damage insurance ,earthquake insurance.
3) In the case of motor insurance the insured is entitled to premium on a certain basis
to the next renewal of the policy if he/she make claims before the period of
insurance 14 . The amount of this premium should be increased by 10 % .Such as
one claim of preceding period of insurance should be 40% instead of 30%.
4) Phoenix insurance company has paid some big claims to their valued corporate
clients . These claims influences or on some cases determines a firms profit and
losses .So they should focus on the factors that they are gaining profit from those
insurance agreements .
14
Entitled premium if policyholder make claims before the period of insurance -
http://www.phoenixinsurance.com.bd/phoenix/index.php?option=com_content&view=article&id=100&Itemid=
88

41
The cost and impact of this 1year or less than 1 year action plan(Short-term)
Action Plan
Budget(TK)
The Impact
1) Increasing the number of experienced executives
on their management team.
2,00,000 This will increase the
management cost but will
increase management
efficiency as well.
2) More specification on liability of riot and strike
insurance ,earthquake insurance .
0 Liability will be limited on
certain major catastrophic
situations.
3) 10% Increased premium on motor insurance on
claims before the next renewal.
2,00,000 Increase in the firms
premium revenue .
4) Cautious on the big claims of the corporate
clients.
50,000 Will limit firms unexpected
big claims to certain extent.
Effects of the action plan for one year or less than one year on net profit :
Assumption :
1) We have assumed that only the monetary value of the action plan will change in 2013.
2) The monetary value of other accounts in profit and loss account will remain the same
as 2012 in 2013 .

42
Action plan effects On Profit and Loss Account
For the year ended 31st
December,201315
Net Profit Of Phoenix insurance company Ltd. Changes due to
Action Plan on 2013 :
𝑷𝒓𝒐𝒇𝒊𝒕 𝒅𝒊𝒇𝒇𝒆𝒓𝒆𝒏𝒄𝒆 𝒃𝒆𝒕𝒘𝒆𝒆𝒏 𝟐𝟎𝟏𝟐 𝒕𝒐 𝟐𝟎𝟏𝟑 × 𝟏𝟎𝟎
𝑵𝒆𝒕 𝒑𝒓𝒐𝒇𝒊𝒕 𝒐𝒇 𝟐𝟎𝟏𝟐
=
50,000 ×100
14,59,52,317
= 0.03 % Increase in net profit
15
Profit and loss account of 2012 --- Phoenix Insurance Annual Report 2012 , Page No-128,129
Particulars Taka Taka
Interest Income (1,48,81,219+2,00,000) 1,50,81,219
Income from shares 3,71,65,145
Other income (1,17,73,474+50,000) 1,18,23,474
Profit/Loss transferred from (Fire,Marine,Misc Revenue
Account)
10,06,51,213
16,47,21,051
Expenses of management (1,85,18,734+2,00,000) 1,87,18,734
Net profit for the year carried down to Profit and Loss
Appropriation account
14,60,02,317
16,47,21,051

43
Source:
http://www.phoenixinsurance.com.bd/phoenix/index.php?option=com_content&view=article
&id=84&Itemid=94
5.2 Action Plan for 2 years to 5 years ( Medium term)
1) Phoenix insurance company Ltd. should increase the amount of retained earning by
their net income .
2) Giving more importance on companies performance than to increasing the
shareholders equity .
3) Minimizing the difference of the Premium rate 16
plan of overseas mediclaim (
Business and holiday, education and employment ) including U.S.A and Canada
and excluding U.S.A and Canada .The difference between the premium rates
should be minimized to increase the number of policyholder .
The cost and impact of this 2 years to 5 years action plan (medium term)
16
The premium rate for overseas mediclaim –
140
4,24,42,956 3,76,40,447
11,15,93,577
5,04,76,960
7,71,41,036
0
20000000
40000000
60000000
80000000
100000000
120000000
2006 2007 2008 2009 2010
PIC's 5 years Claim Settlement Position-Taka
PIC's 5 years
Claim Settlement
Position

44
Action Plan
Budget(TK)
The Impact
1) Increasing the retained earning of
the company.
0 The company will get a reliable
source for internal financing.
2) Giving more importance on
increasing companies performance .
50,000 This will increase the faith of the
policyholders towards the
company.
3) Minimizing the difference of the
premium rate plan for overseas
mediclaim .
0 This will increase the number of
policyholders of the company .
5.3 Action plan for more than 5 years (long term)
1) Phoenix insurance co. ltd. have 19 board of directors with a great combination of
seniors and juniors and most of them are graduate of foreign universities . They
should include more Bangladeshi Graduate in the board of director as they can be a
great asset in assuming the domestic market and their trends.
2) They should be more accurate in measuring their future claims from the
policyholders.
3) Phoenix insurance company ltd. should frequently take a step forward to help the
distress of our country. For example, 17 Mr.Shoeb ( Chairman of the Phoenix
insurance co. ltd.) made 5 lakh taka charity handed to prime minister Sheikh Hasina
for the devastating Nimtoli tragedy which killed 117 people on June 3,2010.
17
CSR of Phoenix Insurance Co. LTD -
139

45
The cost and impact of more than 5 years action plan (Long term) :
Action Plan
Budget (TK)
The Impact
1) Including more Bangladeshi
graduates in their board of directors.
12,00,000 Forecasting the domestic market
and trends.
2) Accuracy to their measurement of
future claims.
1,00,000 This will give the company the
chance to determine the right
amount of insurance premium.
3) Fulfilling corporate social
responsibility
15,00,000 The will make the company more
popular among the people .

46
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Michael E. Porter,“Competitive Strategy: Techniques for Analyzing Industries and
Competitors”,Investopedia,Web,10 Aug. 2010.
“Insurance company strategy,”facebook page,Web,19 july 2012
<http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.phoenixinsurance.com .
bd%2Fphoenix%2Findex.php%3Foption%3Dcom_content%26view%3Darticle%26id%3D5
4%26Itemid%3D30&h=2AQE1A7BO>.
“History of Phoenix”,homepage,Phoenix Insurance Company,n.d.,web ,11 october 2013
M ShefaqueAhmed ,“The state of insurance industry in Bangladesh”,
thefinancialexpress.bd.com,8 sept. 2008.
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ent&view=article&id=100&Itemid=88>
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Profit and loss account of 2012”, Page No-
128,129,Dec. 2012
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=com_content&view=article&id=102&Itemid=140>
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problems-and-prospects-in-Bangladesh>

47
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Insuranceindustry”,n.d.,Web,<http://www.investopedia.com/features/industryhandbook/por
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“Product and Services”,Green Delta Company,n.d.,Web<http://www.green-delta.com>

48
Appendix
1) PIC : Phoenix Insurance Company.The Phoenix Insurance Company is very well
known and one of the first leading insurance company in Bangladesh which
commence its journey of business on November 27, 1986.
2) IDRA: Insurance Development and Regulatory Authority, work for control the
activities of insurance company according to rules and regulations.
3) Underwriting: The process by which investment bankers raise investment capital
from investors on behalf of corporations and governments that are issuing securities
(both equity and debt).
4) Disposable Income : The amount of money that households have available for
spending and saving after income taxes have been accounted for. Disposable personal
income is often monitored as one of the many key economic indicators used to gauge
the overall state of the economy.
5) Macro Environment: The conditions that exist in the economy as a whole, rather
than in a particular sector or region. In general, the macro environment will include
trends in gross domestic product (GDP), inflation, employment, spending, and
monetary and fiscal policy. The macro environment is closely linked to the general
business cycle, as opposed to the performance of an individual business sector.
6) Monetary value: The amount of value an item or a service has in relation to if it
were sold for cash to a willing buyer.
7) Income Per Capita: A measure of the amount of money that is being earned per
person in a certain area. Income per capita can apply to the average per-person
income for a city, region or country and is used as a means of evaluating the living
conditions and quality of life in different areas. It can be calculated for a country by
dividing the country's national income by its population.
8) Gross Domestic Product (GDP): The monetary value of all the finished goods
and services produced within a country's borders in a specific time period, though
GDP is usually calculated on an annual basis. It includes all of private and public
consumption, government outlays, investments and exports less imports that occur

49
within a defined territory.
GDP : C + G + I + NX
where:
"C" is equal to all private consumption, or consumer spending, in a nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports.
(NX : Exports - Imports)
9) Gross premium: The gross premium is that premium which is charged by the
insured to meet the amount of claims and expenses. Thus, the gross premium includes
the net premium and loading. Loading is the process to add the expenses to net
premium. The loading may add a certain amount to meet the bonus charges on
participating policies.
10)Paid-Up Capital: The amount of a company's capital that has been funded by
shareholders. Paid-up capital can be less than a company's total capital because a
company may not issue all of the shares that it has been authorized to sell. Paid-up
capital can also reflect how a company depends on equity financing
11)Net Premium: The amount of premium minus the agent's commission is known as
Net Premium. Also, it is the premium necessary to cover only anticipated losses,
before loading to cover other expenses.
12)Market Share: The percentage of an industry or market's total sales that is earned
by a particular company over a specified time period. Market share is calculated by
taking the company's sales over the period and dividing it by the total sales of the
industry over the same period. This metric is used to give a general idea of the size of
a company to its market and its competitors.

Report on phoenix insurance company & insurance industry analysis

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Report on phoenix insurance company & insurance industry analysis