The Ministry of Finance has formally requested a precise and detailed proposal from the insurance regulator to streamline the registration renewal process for private insurance companies for the year 2026. This directive seeks to resolve ongoing ambiguities regarding fee structures and ensure the effective implementation of the prevailing regulatory framework governing the sector.
Formal Directive to the Regulator
On Tuesday, 12 May 2026, the Financial Institutions Division (FID) of the Ministry of Finance dispatched a formal letter to the Chairman of the Insurance Development and Regulatory Authority (IDRA). The correspondence, issued by the Insurance-1 branch of the FID and signed by Deputy Secretary Mohammad Abraul Hasan Mazumder, specifically demands a comprehensive explanation and a distinct proposal concerning Rule 3(2) of the ‘Insurance Business Registration Fee Rules, 2012’ (as amended in 2026).
This ministerial intervention follows an earlier communication from IDRA dated 26 April 2026, wherein the regulator sought legal guidance on the next steps for renewal fees. The Ministry has now emphasised that a clear proposal is mandatory to facilitate the determination of fees for both life and non-life insurance entities for the 2026 fiscal year.
Key Regulatory Data and Compliance Figures
| Subject | Details and Statistics |
| Governing Act | Insurance Act, 2010 |
| Relevant Regulation | Insurance Business Registration Fee Rules, 2012 |
| Current Fee Rate | Tk 1.00 per Tk 1,000 of Gross Premium |
| Non-Compliant Entities | 67 Insurance Companies |
| Issuance Date of Letter | 12 May 2026 |
| Previous IDRA Inquiry | 26 April 2026 |
Non-Compliance and Legal Hurdles
Under the Insurance Act, 2010, and the associated 2012 Rules, insurance providers are legally obligated to pay a prescribed fee to renew their operational registrations. Specifically, these institutions are required to remit Tk 1.00 for every Tk 1,000 of their gross premium income.
Despite the enactment of the amended notification regarding the 2026 renewal fees, administrative reports indicate that 67 insurance companies have failed to settle their dues. Consequently, the registration renewals for these specific entities have been stalled. Faced with this widespread non-compliance, IDRA approached the Ministry for a legal opinion to determine the subsequent administrative and punitive actions required.
Administrative Objectives
The Ministry’s demand for a “clear and specific proposal” is intended to eliminate any interpretative gaps in Rule 3(2) of the registration fee bylaws. By refining these regulations, the government aims to establish a more transparent and efficient renewal cycle. The failure of nearly 70 companies to comply suggests a need for either stricter enforcement or a more elucidated fee determination process.
The FID has indicated that the 2026 renewal process must adhere strictly to the updated legal provisions. Once IDRA submits its detailed explanation and recommendations, the Ministry will evaluate the feasibility of the proposed fee adjustments and issue final instructions to ensure the stability and legality of the insurance market in Bangladesh.