Dhaka, Bangladesh Pratidin: Following recent political upheavals, Bangladesh’s interim government has assumed office with a commitment to comprehensive national reforms. Among the top priorities is the modernisation and revitalisation of the country’s insurance sector. The Insurance Development and Regulatory Authority (IDRA), tasked with overseeing this sector, has embarked on a wide-ranging reform programme aimed at strengthening governance, restoring public trust, and aligning the industry with national development goals.
Since assuming office, IDRA has implemented 75 reform and development measures, designed to ensure long-term sustainable growth. The primary objectives include safeguarding policyholders’ interests, protecting shareholder rights, and creating a trustworthy, disciplined, and technologically advanced insurance market. To streamline this reform, IDRA has divided its initiatives into three main pillars: administrative reform, legal reform, and digital reform, each tailored to the current socio-economic environment.
Legal and Regulatory Reforms:
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Amendments to the Insurance Act, 2010 and IDRA Act, 2010 to ensure timely, effective, and stakeholder-friendly regulation aligned with international best practices.
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Introduction of the Insurer Resolution Ordinance, 2026, aimed at rehabilitating distressed insurance companies and protecting policyholder interests.
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Establishment of the Chartered Insurance Institute Ordinance, 2026 and Actuarial Ordinance, 2026, enhancing professional standards and expertise in the sector.
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Revision of solvency margins, corporate governance regulations, CEO appointments, and agent/advisor licensing procedures.
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Launch of the updated National Insurance Policy, 2025–30, succeeding the 2014 policy, to strengthen financial capacity, accountability, and professional standards across life and non-life insurers.
Digital Governance and Modernisation:
| Reform Initiative | Key Features | Expected Impact |
|---|---|---|
| Regulatory Sandbox Guidelines (2023) | Real-time monitoring and data-driven decision-making | Increased transparency and responsiveness |
| Insurance Information Management System (IIMS) | Policyholder portal, mobile apps, e-KYC, electronic reporting, central data warehouse, business intelligence | Enhanced service delivery and accessibility |
| Insurance Sector Development Project | Implementation in IDRA, Bangladesh Insurance Academy, GIC, LIC by 2026 | Modernised internal processes and capacity-building |
| Digital Claims Settlement Application | Streamlined complaint and claim resolution | Faster response and higher customer satisfaction |
| National Core Insurance Solution (NCIS) | Centralised platform for all insurers | Prevents fraud, misappropriation, and other irregularities |
Administrative and Operational Enhancements:
IDRA has strengthened supervisory and inspection mechanisms, implemented a grading system for insurance companies to encourage competition, and introduced risk-based audits. A merit-based CEO recruitment process has been launched to ensure qualified leadership. Offsite supervision has been intensified to protect policyholder interests. A dedicated call centre and restructured dispute resolution committees have been established, supporting rapid resolution of complaints.
Experts anticipate that these comprehensive reforms will fortify Bangladesh’s insurance sector, raise professional standards, and enhance both investor and consumer confidence. By integrating digital systems with regulatory oversight, IDRA aims to create a transparent, accountable, and resilient insurance market capable of sustaining long-term national economic growth.