A Term Paper on

Rupali Insurance Company Limited

Department of Banking and Insurance

Faculty of Business Studies
University of Dhaka

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Submitted to

Mr. Md. Jahir Uddin Palas

Assistant Professor

Submitted by

Md. Omar Faruk

ID-51428041; Batch-28th
Department of Banking and Insurance
Faculty of Business Studies
University of Dhaka

Date of Submission:
August 11, 2016

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Letter of Transmittal
Mr. Md. Jahir Uddin Palas
Assistant Professor
Department of Banking and Insurance
Faculty of Business Studies
University of Dhaka
Subject:

Submission of Term Paper

Dear Sir,
I am pleased to submit the report that you asked for and gave us the
permission to work on Rupali Insurance Company Limited. This report is
an essential part of our course. I tried my best to work on it sincerely to
make the report informative.
The study I conducted enhanced my knowledge to make a significant
report. This report has given me the experiences that might have
immense uses in the future endeavor and I sincerely hope that it would be
able to fulfill your expectations.
I have putout sincere effort to give this report a presentable shape and
make it as informative and precise as possible. Thank you for providing
me opportunities.
Sincerely yours,

Md. Omar Faruk

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Acknowledgement
All praise to Allah, our creator and sustainer, for giving me the strength to
prepare this assignment.
My heartfelt thanks to our course teacher Mr. Md. Jahir Uddin Palas for
giving us an important topic and also for giving suggestion as well as
guidelines, which helped me in completing the report.
The successful accomplishment of this report is the outcome of the
contribution and involvement of a number of people, especially those who
took the time to share their thoughtful guidance and suggestions to
improve the report. At first thanks to the officers and executives of Dhaka
Bank Limited. Especially for their generous help through providing
necessary information regarding this report. These elements helped me a
lot for preparing the report.
My deepest gratitude to our respected course instructor Mr. Md. Jahir
Uddin Palas, Assistant Professor, Department of Banking and Insurance,
University of Dhaka. I am thankful to her continuous support and
supervision, suggestions and providing me with valuable information that
was very much needed for the completion of this report.
Finally, I am indebted to the contribution of all whose cordial cooperation
helped me directly or indirectly for the completion of this report.

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Executive Summary
Turning a concept into a profitable product or product platform is not an
easy job, and requires people from multiple disciplines to work together.
New product development (NPD) is a complex, collaborative process that
requires coordinating the innovation efforts of many to meet a common
goal.
Education Safety Scheme is such an innovation to penetrate the existing
market and to make profit. Its a liability product of a bank which is align
with the asset product of the bank. This product is designed to facilitate
limited earning parents to save money for their childrens future education
cost.
The benchmark is set by putting emphasis of new product development
processes to increasing product revenue and decreasing product cost.
This product has already some similar product in the market. Such similar
products are DPS, MDS, EduSavings Scheme, etc. But its special feature
makes it a different one and more helpful for both the stakeholders, i.e.
Bank and the clients.
This product has two phases which is not available in other deposit
schemes existing in the market.
Phase One: Earning Phase
Phase Two: Benefit Phase
Different divisions and individuals are responsible for one or more aspects
of the product, and few of these aspects can stand alone. Decisions made
in one facet of a product impact many others. Research & Development
Unit, Consumer Banking Division, Finance & Accounts Division, IT Division
are included to the development of the product.
The report determined that banks that are best-in-class at new product
development and introduction tend to have the following similarities:
A senior manager is directly responsible for overseeing the full
process of identifying innovation opportunities, engineering them,
developing them into products, and bringing them to market.

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 Innovation strategy is centrally controlled or coordinated.

Measurement of innovation performance is frequent, and at an
enterprise level.

Bank needs to enhance product development processes in order to bring

profitable products to market in a predictable, repeatable way. The
divisions mentioned above, along with program management and
information technology (IT) should also play important roles in new
product development by enabling the coordination, communication,
collaboration, and control required to succeed in a challenging innovation
market.
The report concludes that for companies to remain competitive in the face
of a more challenging innovation environment and challenging corporate
profitability objectives, they must significantly improve product
development performance.

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Contents
Sl. No.
01
02
03
04
05

Content
Chapter Two
Objectives
Purpose
Scope
Methodology of the study

06
07
08
09
10
11
12
13
14
15
16
17
18

Chapter Three
Topic Analysis
New Product Development Process
New Product Development Idea
Product Portrayal
Product Profile
Idea Screening
Concept Development and Testing
Marketing Strategy
Business Analysis
Product Development
Test Marketing
Commercialization

19
20
21

Chapter Four
Market Segmentation
SWOT Analysis

22
23
24

Chapter Five
Marketing Mix
Conclusion

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Bibliography

Page No.
10
10
10
11
13
13
14
14
15-18
19
19
20
21
21
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22
24
25
27-28
29
31

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Chapter Two

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bjectives

The main purpose of this report is to know about the process of new
product development and other purpose with related this process.
However, the objectives of this report can be summarized in the following:
The main objectives of this report is to understand the process of
new product development.
To observe the market policy and market place in Bangladesh.
To define what is new product?
What is the present status of market in Bangaldesh?
To understand the practical idea about market.
Finding and developing new-product and ideas.
Knowing the stages of the product life cycle.
Understanding how marketing strategies change during the
products life cycle.
Learning the steps in the new-product development process.
To understand about new product development strategy.

urpose

Our report has some purpose along with marketing plan for the Car
Loan. There are some other purposes of this report as well.

To
To
To
To

get a clear concept about marketing plan.

get an overall idea about the Marketing Research.
find out the role of target market.
marking the problem for placing a new product in a market.

cope

This study makes an attempt to cover within its scope almost all the
significant aspects of New Product Development. It gives me an
opportunity to do a team work where we all can show our personal view,
ideas and creativities.

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ethodology of the study

To prepare the report I have to collect both primary and secondary data.
The following sources have been used for the purpose of collecting data.

Primary Data

Face to face conversation of the officers

Interviews with the executives of the Insurance Company
Expert opinion
Discussion with the other course mates
Discussion with the peer insurance officials

Secondary Data
Annual Report of 5 (Five) years
Report of the Bangladesh Bank
Relevant books, newspapers, journals, website and various study
reports
Website of Bangladesh Bank, DSEC, Ministry of Finance, etc.

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Chapter Three

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ompany

Profile

Rupali Insurance Company Limited as a Public Limited Company under the

Companies Act, 1913 and a first generation & top-tire Non-life Insurance
Company in Bangladesh came into existence in May, 1988 and started its
commercial operations on 25 June, 1988 by a group of visionary entrepreneurs.
CAPITAL
Rupali Insurance Company Limited has a strong capital base & capital adequacy
maintaining well position in the market. It started its business with a paid up
capital of Tk.30 million against an authorized capital of Tk.200 million being
sponsored by a group of renowned business personalities & reputed industrialist
of the company having involvement in diversified business. The Company went
into initial public offering in 1995.
The paid up capital of the company has been raised to Tk.602 million as on
December 31, 2015 after issuance of Rights shares in the year 2012 and
adjustment of stock dividends including @ 5% declared in the year 2014. RICL
shares are being traded as A category issue at both the bourses of the
company.
CREDIT RATING
For over two and half decades, Rupali Insurance Company Limited has been
holding the strong position in terms of premium collection. CRISL, the Credit
Rating Agency in Bangladesh reaffirmed the claim paying ability (CPA) rating of
Rupali Insurance Company Limited on September 30, 2015 as AA based on its
premium collection, core services, financial ability & expeditious settlement of
claims.
NETWORK
Rupali Insurance Company Limited with a network of 48 branches covering
strategic financial centers of Dhaka, Chittagong & some important district town
has been providing whole hearted services to the doorsteps of the clients. It has
active presence in capital market.
BOARD OF DIRECTORS
The Board of Rupali Insurance Company Limited has been constituted with 20
Directors as per Section 76 (1) of Insurance Act 2010 and notification of
Bangladesh Securities and Exchange Commission. The Board of RICL is as
follows:
11 Sponsor Directors
05 Public Share Holder Directors and
04 Independent Director

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The Board is chaired by Mr. Mostafa Golam Quddus, an eminent business person
& well reputed industrialist & Ex-President of Bangladesh Garments Manufactures
and Exporters Association (BGMEA) having diversified business exposures.
BUSINESS STRATEGY
The company is focused on few strategic issues encompassing change
management in the short to long period through the implementation of various
policies, processes and activities to ensure continuous, sustainable and
qualitative growth, with the sole objectives of Institutions Building. An effective
cluster management program has been implemented. Branch Management is
now being continually exposed to mature thoughts and ideas through mentors
resulting in qualitative improvement of their business and operational activities.

ompany Information:

Incorporation

: May 13, 1988

Commencement of Business

: June 25, 1988

Branch Office

: 48

Number of Employees

: 608

Listing with Dhaka Stock Exchange

: March 20, 1995

Listing with Chittagong Stock Exchange

Registered Office

: October 10, 1995

: Rupali Bima Bhaban

7, Rajuk Avenue, Dhaka-1000
Phone: 9565625-26, 9567238, 9553861
Fax: 880-2-9565629
E-mail: info@rupaliinsurance.com
Web: www.rupaliinsurance.com

Chairman

: Mostafa Golam Quddus

Management & Financial Consultant

: M. Azizul Huq

Chief Executive Officer

: P. K. Roy, FCA, FCS

Chief Financial Officer

: A. A. Nasiruddin Ahmed

Company Secretary

: A. S. M. Rashed

Auditors

: A. Wahab & Co.

Chartered Accountants

Legal Consultant

: Rokanuddin Mahmud
Barrister-at-Law

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roduct of

RICL

Property Insurance
Fire Insurance including allied perils
Property Damage All Risks
Industrial All Risks including Machinery
Breakdown Business interruption
Comprehensive Machinery Insurance

Marine Insurance
Marine Cargo, Marine Hull and Builders
Risk Insurances

Engineering Insurance
Machinery Insurance [Machinery Breakdown]
Boiler and Pressure Vessel [BPV]
Electric Equipment Insurance [EEI]
Erection All Risks [EAR]
Contractors All Risk [CAR]
Work Plant [WP]
Contractors Plant & Machinery [CPM]

Motor Insurance
Motor Insurance for Commercial use
Motor Insurance for Private use

Miscellaneous Insurance
Burglary
Cash in Safe, Cash in Transit, Cash on Counter
Cash in Premises
Fidelity Money Insurance for Banks Guarantee
Product Liability
Public Liability
Workmens Compensation
Employers Liability
Marine Terminal Operators Liability
Comprehensive General Liability
Personal Accident
Personal Accident (Air Travel)
Health Insurance
Business and Holiday [B&H]
Corporate Frequent Travels [CFT]
Employment and Study [E&S]

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Company Performance
Gross Premium
Re-Insurance
Premium
Net Premium
Gross Claims
Net Claims
Underwriting Profit
Net Profit before Tax
Net Profit after Tax
Paid up Capital
Reserve
for
Unexpired Risk
Reserve
for
Exceptional Losses
Total Assets
Fixed Assets
Investment including
FDR
Dividend Amount
Dividend %
No. of Branches
No. of Employees
No. of Shareholders
Earning Per Share
(EPS)
Net
Asset
Value
(NAV) per Share
Net Operating Cash
Flow Per Share
Return on Equity
Price Earning Ratio
Market Price (as on
30th Dec.)

2015
821.77
323.32

2014
745.37
303.99

2013
682.58
276.01

BDT in Million
2012
2011
746.23
756.33
266.48
257.47

498.45
209.42
192.59
129.57
178.34
115.34
602.06
200.94

441.38
174.90
163.16
82.79
172.53
107.73
573.39
179.38

406.57
192.85
173.69
78.67
163.85
103.25
521.26
163.94

479.75
162.27
144.18
149.99
179.47
116.77
434.39
192.17

498.86
173.71
159.59
73.25
96.55
72.65
197.45
200.20

347.37

327.37

307.37

287.37

257.37

2,145.0
3
441.24
1,012.5
8
90.31
15%
48
608
6,747

2,058.86

1,982.37

1,887.21

1,323.94

424.68
985.05

403.73
963..12

397.78
941.02

426.46
431.27

86.01
15
48
620
8,073

104.25
20
47
610
9,222

86.88
20
44
570
7,793

39.49
20
43
540
6,212

1.92

1.88

1.98

3.31

3.68

23.01

23.18

24.63

28.06

37.95

2.02

1.39

1.26

3.66

4.62

7.57
8.80
16.90

7.34
12.55
23.60

7.30
16.97
33.60

8.71
13.87
45.90

8.46
17.90
65.90

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Performance Indicator
1) Earning Per Share (EPS)
2011
3.68

2012
3.31

2013
1.98

2014
1.88

2015
1.92

2) Net Asset Value (NAV) per Share

2011
37.95

2012
28.06

2013
24.63

2014
23.18

2015
23.01

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3) Net Profit (Before and After) Tax

2011
96.55
72.65

2012
179.47
116.77

2013
163.85
103.25

2014
172.53
107.73

2015
178.34
115.34

Before Tax
After Tax

4) Gross Profit Ratio

2011
19.35

2012
37.41

2013
25.39

BDT in Million
2014
2015
39.09
37.25

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5) Net Premium
2011
498.86

2012
479.75

2013
406.57

BDT in Million
2014
2015
441.38 498.45

6) Return on Equity
2011
8.46

2012
8.71

2013
7.3

2014
7.34

2015
7.57

7) Price Earning Ratio

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2011
17.9

2012
13.87

2013
16.97

2014
12.55

2015
8.8

8) Underwriting Profit

2011
73.25

2012
149.99

2013
78.67

BDT in Million
2014
2015
82.79 129.57

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10

Chapter Four

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Findings

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Chapter Five

10

Suggestions

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Conclusion
This report expands upon one major conclusion of the benchmark report,
that innovation is a team sport. Education Safety Scheme is a
part of such sport and this sport has to be continued.
Bank needs to enhance product development processes in order to bring
profitable products to market in a predictable, repeatable way. Divisions,
Departments, Branches along with program management and information
technology (IT) should also play important roles in new product
development by enabling the coordination, communication, collaboration,
and control required to succeed in a challenging innovation market. The
report concludes that for companies to remain competitive in the face of a
more challenging innovation environment and challenging corporate
profitability

objectives,

they

must

significantly

improve

product

development performance.
And

thus

Education

Safety

Scheme

is

developed

to

keep

the

acceleration of income of the Bank to near future and for the long run.

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Bibliography

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Journal:
The new product development process within industrial districts: a
cognitive approach by Nunzia Carbonara, Gianni Schiuma
Book:
Philip Kotler, Gary Armstrong, Prafulla Y. Agnihotri & Ehsanul Haque,
Principle of Marketing, 13th Edition. (United States of America: 1997)
Prentic Hall, Inc.
Websites:
1. www.learnmarketing.com
2. www.hktdc.com
3. www.npd.com.au
4. www.wikipedia.com

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