The Financial Institutions Division (FID) of the Ministry of Finance has initiated a high-level review of the nation’s insurance framework, convening two critical meetings today, Monday, 20 January 2026. These sessions are designed to scrutinise the draft Insurers’ Resolution Ordinance 2025 and proposed amendments to the Insurance Act 2010, marking a significant step toward modernising the country’s financial safety nets.
A Two-Tiered Reform Agenda
Held at the Insurance Development and Regulatory Authority (IDRA) conference room, the meetings are being chaired by Mr Md. Sayeed Kutub, the FID’s Additional Secretary for Insurance and Capital Markets. The morning session, which commenced at 11:00 am, was dedicated to the Insurers’ Resolution Ordinance 2025. This landmark ordinance seeks to establish a structured exit and recovery strategy for distressed insurance firms, ensuring that a company’s financial failure does not result in the total loss of policyholder savings.
The second session, scheduled for the afternoon, focuses on refining the Insurance Act 2010. These amendments are aimed at curbing administrative inefficiencies and introducing stringent transparency measures to restore public confidence in a sector often plagued by delayed claim settlements.
Overview of Proposed Regulatory Reforms
| Proposed Legislation | Primary Strategic Objective | Stakeholder Impact |
| Resolution Ordinance 2025 | Crisis management & systemic stability | High: Protects policyholders’ funds |
| Insurance Act 2010 (Draft) | Governance & legislative modernisation | Medium: Enhances corporate accountability |
| Host Institution | IDRA (Insurance Development Authority) | Regulatory Oversight |
| Chairperson | Mr Md. Sayeed Kutub (FID) | Ministerial Strategic Lead |
Industry Owners Seek Election Deferral
Despite the FID’s momentum, the Bangladesh Insurance Association (BIA), which represents the interests of insurance company owners, has formally requested a stay on these proceedings. In letters dispatched on Sunday, 18 January, the BIA urged the government to postpone these discussions until the conclusion of the 13th National Parliamentary Election 2026.
The BIA noted that its leadership, including its President, is currently heavily engaged in the national election campaign as a parliamentary candidate. The association argued that given the “monumental significance” of these legislative changes, any decision made without the direct participation of industry heads would be premature.
Broad Consensus Required
The FID has remained firm in its request for attendance, inviting a wide array of experts from the Legislative and Parliamentary Affairs Division, Jiban Bima Corporation, and the Bangladesh Insurance Forum. The tension between the government’s desire for rapid reform and the industry’s focus on the upcoming political transition underscores the complexity of financial governance in the current climate.