Global Insurance PLC has come under scrutiny for failing to reinsure policies worth approximately 55.5 billion taka, contravening statutory obligations. Under the Insurance Act 2010, companies are legally required to reinsure all re-insurable policies, and failure to comply can lead to suspension or cancellation of their licence. The omission has exposed both the company and its clients to significant risk while depriving the state-owned reinsurer, General Insurance Corporation (GIC), of substantial premium income.
A special audit of Global Insurance’s operations for 2022 was conducted by the Insurance Development and Regulatory Authority (IDRA), with UHY Saiful Shamsul Alam & Co. appointed as auditors. The audit revealed widespread irregularities in the company’s handling of re-insurable policies.
According to the audit report, a total of 3,022 insurance policies issued from seven branch offices were examined. Of these, 1,249 policies were deemed re-insurable. However, Global Insurance failed to reinsure 1,012 policies—approximately 81% of the total re-insurable policies.
The total insured value of policies that were not reinsured amounted to 2,598.12 crore taka, of which 555.19 crore taka was classified as re-insurable. The audit annex provides detailed information on 83 representative policies that were re-insurable but not reinsured, highlighting the financial and regulatory risks involved.
Selected Unreinsured Policies
| Policy Type | Number of Policies | Total Insured Amount (Taka) | Re-insurable Amount (Taka) |
|---|---|---|---|
| Fire Insurance | 7 | 21,85,65,000 | 7,85,65,000 |
| Motor Insurance | 1 | 77,00,000 | 32,00,000 |
| Marine Cargo | 75 | 50,49,41,279 | 27,99,41,279 |
Failure to reinsure these policies constitutes a direct violation of insurance regulations, putting the company at substantial financial risk and potentially limiting its capacity to meet large claims.
IDRA regulations under Section 10(1)(j) of the Insurance Act 2010 empower the authority to suspend or cancel a company’s registration if it fails to maintain adequate reinsurance arrangements. A hearing regarding Global Insurance’s 32 identified irregularities, including the failure to reinsure, was held on 23 July 2025. Despite the allegations, no penalties or disciplinary actions were imposed at the hearing. The law division of IDRA was, however, advised to take necessary measures to ensure compliance and caution the company.
Industry observers note that inadequate reinsurance could endanger clients in the event of significant losses and may even threaten the company’s solvency. Past instances, such as the suspension of Standard Insurance Limited in 2015 for failing to reinsure 46.33 crore taka in policies, underscore the seriousness of such violations.
Attempts to obtain comment from Global Insurance PLC were initially unsuccessful, and despite follow-up, the company provided no further statements.