BIF Forms Committee to Oversee Zero Commission Policy

The Bangladesh Insurance Forum (BIF), the country’s leading insurance sector body, has established a special committee to monitor the effective implementation of a zero-per cent commission policy in the non-life insurance sector.

The formation of this committee follows a recent circular issued by the Insurance Development and Regulatory Authority (IDRA), which instructed the suspension of licences for individual insurance agents and mandated that all insurance companies adopt a zero-commission framework for non-life policies. The newly formed committee will be responsible for ensuring full compliance with the directive, coordinating with member companies, and submitting regular progress reports to BIF leadership.

The decision was taken during an urgent high-level meeting at BIF’s Dilkusha office on Wednesday, attended by senior executives from both life and non-life insurance sectors. A press release issued after the meeting outlined the committee’s structure, mandate, and responsibilities in detail.

The session was chaired by BIF President and Executive Member of the Bangladesh Insurance Association, BM Yusuf Ali, who also serves as CEO of Popular Life Insurance. Discussions focused on the IDRA circular, the revised commission structure, and the potential impact on the insurance market. Key participants included:

Abul Kalam Azad, Vice President, BIF & CEO, Takaful Islami Insurance

Brigadier General Md. Shafik Shamim (Retd.), General Secretary, BIF & CEO, Sena Insurance

SM Nuruzzaman, Joint General Secretary, Zenith Islami Life Insurance

Md. Nure Alam Siddiqui, CEO, Bangladesh Co-operative Insurance

The committee is tasked with conducting regular field inspections, identifying irregularities, and reporting directly to the BIF leadership. Officials emphasised that this initiative will play a pivotal role in resolving long-standing commission disputes, ensuring fair competition, and safeguarding the interests of policyholders.

Non-Life Zero Commission Monitoring Committee Members

BIF leadership has expressed confidence that active oversight by the committee will ensure disciplined implementation of the zero-commission policy, enhance transparency, and strengthen public trust in the non-life insurance sector. The committee’s work is expected to have long-term positive effects on sectoral governance, policyholder protection, and industry credibility.