Bangladesh’s Ministry of Finance has directed all life and non-life insurance companies to pay their 2026 registration renewal fees at a revised rate of Tk2.50 per thousand taka of gross premium. The instruction was issued on Tuesday (23 June) by the Insurance-2 wing of the Financial Institutions Division (FID), despite objections raised by insurance company owners.
In an official communication addressed to the চেয়ারম্যান of the Insurance Development and Regulatory Authority (IDRA), the FID instructed that the fees be realised in accordance with Rule 3(2) of the Insurance Business Registration Fee Regulations, 2012. The directive emphasises compliance with the rates and timelines outlined in the latest amended government gazette.
The decision follows a formal request made by IDRA on 26 April, when the regulator sought clarification and legal guidance from the Financial Institutions Division regarding the applicable rate of renewal fees for private insurance companies for 2026. The latest instruction from the FID effectively settles that query, confirming the higher rate as enforceable.
The revised fee structure stems from a gazette notification issued on 4 February this year, which increased the renewal fee from Tk1.00 to Tk2.50 per thousand taka of gross premium—an abrupt two-and-a-half-fold rise. Since then, insurance companies have consistently voiced their opposition, arguing that the increase is disproportionately high and could place significant financial strain on the sector.
Industry representatives point out that under the new rate, a company with Tk100 crore in gross premium income would see its renewal fee rise from Tk1 million to Tk2.5 million. The Bangladesh Insurance Association (BIA) has urged the authorities to reconsider the decision, describing the increased fee as an added burden that could affect operational sustainability, particularly for smaller firms.
On the other hand, the regulator has defended the move by highlighting its financial constraints. In its correspondence with the FID, IDRA noted that it relies entirely on its own income to meet operational expenses. Recent initiatives—such as expanding digital infrastructure, implementing a National Core Insurance Solution, and establishing new institutional frameworks—have significantly increased its expenditure.
The issue has now emerged as a point of contention within the insurance sector. While regulators argue that enhanced fees are necessary to modernise oversight and strengthen institutional capacity, insurers remain concerned about rising costs. How these competing priorities are balanced in the coming months is likely to shape the sector’s financial and regulatory landscape.