Strengthening governance, accelerating digital transformation and rebuilding public confidence are essential if Bangladesh’s insurance sector is to realise its full potential and play a greater role in the country’s socio-economic development, speakers said at a post-budget seminar held in the capital on Saturday.
The seminar, organised by the Insurance Reporters Forum (IRF) at Hotel Ekattor in Bijoynagar, focused on the future prospects and challenges facing Bangladesh’s insurance industry. The event was chaired by IRF President Golam Mowla and brought together policymakers, regulators, industry leaders and academics to discuss reforms needed to modernise the sector.
The chief guest, Professor Dr Rashed Al Mahmud Titumir, Adviser to the Prime Minister on the Ministry of Finance and Planning, said Bangladesh’s insurance industry has yet to undergo sufficient digital transformation. As a result, ensuring customer satisfaction, transparency and good governance remains a significant challenge. He observed that inadequate regulatory oversight has contributed to a growing trust deficit among policyholders.
Professor Titumir stressed that a stronger insurance sector is particularly important for Bangladesh because of its vulnerability to climate-related disasters. He said many insurers are still unable to operate efficiently due to limited adoption of modern technology. He also called for sector-specific auditing and a more robust regulatory framework to improve accountability and operational standards.
Insurance Development and Regulatory Authority (IDRA) Chairman Mir Nadia Nivin outlined three priorities for reform: restoring customer confidence, strengthening the regulatory and long-term investment framework, and enhancing institutional capacity across the industry.
She disclosed that approximately Tk 70 billion in insurance claims remain unsettled across the sector. According to her, some of these issues stem from structural weaknesses, while others are linked to the financial condition or management of individual companies. She said efforts are already under way to resolve these problems.
The IDRA chief also highlighted complications surrounding the disposal of assets held by several insurance companies, describing swift resolution of those issues as essential. She advocated the introduction of a risk-based supervisory system, arguing that it would improve oversight and strengthen financial discipline.
Given Bangladesh’s exposure to natural disasters, she said the insurance industry has an increasingly important role to play in protecting individuals, businesses and livelihoods. She also emphasised the need to introduce microinsurance products and improve service delivery channels to expand insurance coverage, particularly among underserved communities.
Bangladesh Insurance Association (BIA) President Saeed Ahmed MP called for the insurance regulator to remain completely independent of commercial interests and irregular practices. He urged policymakers to expand compulsory motor insurance coverage and encourage insurance penetration into new sectors of the economy.
Bangladesh Insurance Forum (BIF) President BM Yusuf Ali noted that some insurance companies settle claims within just 24 hours. However, he said such positive examples rarely receive public attention, while delayed or disputed claims dominate public discussion. Highlighting successful claim settlements, he argued, would help improve public perception of the industry.
SM Nuruzzaman, Managing Director of Zenith Islami Life Insurance, said the life insurance segment faces greater challenges than the non-life sector. He pointed to difficulties in managing and disposing of company assets, adding that easier access to bank financing and improved asset management could help ease many of the industry’s financial pressures.
Professor Dr Md Shahidul Islam Zahid of the University of Dhaka described the insurance sector as an important but neglected component of Bangladesh’s economy. He said insurance penetration remains low and requires urgent policy attention. Weak regulation, a focus on short-term gains and the absence of sustainable long-term planning continue to hamper the industry’s development.
He also argued that expanding insurance coverage for agriculture and climate-related risks should become a national priority. Unless ethical risks and governance shortcomings across the wider financial sector are addressed, he warned, the insurance industry will struggle to achieve sustainable growth.
Participants concluded that restoring public trust, improving governance, embracing digital technology and strengthening regulatory oversight are indispensable for the future of Bangladesh’s insurance sector. They agreed that meaningful progress will require political commitment and coordinated action from regulators, insurers and all other stakeholders.