Author Details
Sadia Noor Khan*
Associate Professor, Department of
Banking and Insurance, University of
Dhaka, Dhaka, Bangladesh.
Email: sadiakhan@du.ac.bd
*Corresponding Author
Khondokar Jilhajj
Lecturer, Department of Business Administration,
City University, Dhaka,
Bangladesh. Email: jilhajj56@gmail.com
Article Details
JBFS Volume 17 Number 1 (June) 2025
DOI:https://www.doi.org
Received: 30 July, 2025
Accepted: 9 December, 2025
Published online: 31 December, 2025
Published in Print: 31 December, 2025
ISSN (Online) 3006-5720
ISSN (Print) 1990-5157
Abstract
This study investigates the impact of claim settlement on the profitability of non-life insurance companies in Bangladesh. Data has been collected from thirty non-life insurance companies operating in Bangladesh from 2013 to 2023. Statistical methodologies, including regression analysis, VIF, Ramsey RESET test etc. have been utilized to investigate the connection between claims settlement strategies and measures of profitability. The findings show that claim ratio is positive and statistically significant to affect ROA indicating that a surge in the claim ratio will increase the confidence of policyholders and have positive impact on the profitability of non-life insurance companies. Macroeconomic factors have been found to have no impact on ROA. This paper provides actionable advice for insurance firms to optimize their claims settlement methods and maximize profitability. The purpose of this suggestion is to help firms discover areas where they may improve and adopt tactics that will benefit their financial performance.