Sunday, 5th April 2026
Khabor Wala Desk
Published: 25th January 2026, 3:35 PM
Dhaka: Following recent political upheavals and the assumption of office by the current interim government, Bangladesh is undertaking comprehensive reforms across key economic sectors. Among these, the insurance industry has emerged as a priority for modernisation and trust restoration. The Insurance Development and Regulatory Authority (IDRA), since taking charge, has launched a broad-based reform agenda aimed at strengthening governance, protecting policyholders, and aligning the sector with national development priorities.
Under this initiative, IDRA has implemented 75 strategic reform measures across administrative, legal, and digital domains. These reforms aim to ensure long-term sustainable growth, enhance customer protection, safeguard shareholder interests, and establish a transparent, technology-driven insurance market.
| Reform Initiative | Purpose | Expected Outcome |
|---|---|---|
| Amendment of Insurance Act 2010 & IDRA Act 2010 | Modernise regulatory framework | Efficient, participatory, internationally aligned governance |
| Insurer Resolution Ordinance 2026 | Rescue and stabilise weak insurers | Protect policyholder interests |
| Chartered Insurance Institute & Actuary Ordinances 2026 | Improve professional standards | Develop skilled insurance workforce |
| Revision of National Insurance Policy (2025–2030) | Update policies and guidelines | Enhance financial stability for life and non-life sectors |
| Updated guidelines on solvency margin, corporate governance, CEO appointment, agents and surveyors | Strengthen compliance | Ensure accountability and sector efficiency |
In addition to legal reforms, IDRA has prioritised digital governance. The upgraded Insurance Information Management System (IIMS) now serves as an integrated digital ecosystem, combining policyholder portals, mobile applications, e-KYC, agent licensing, electronic reporting, central data warehousing, and business intelligence. This integration significantly improves service delivery, transparency, and stakeholder accessibility.
The Bangladesh Insurance Sector Development Project is nearing completion and is expected to be fully operational by 2026 across IDRA, the Bangladesh Insurance Academy, the General Insurance Corporation, and the Life Insurance Corporation. Modernisation measures include ERP systems, document management platforms, disaster recovery infrastructure, security operation centres (SOCs), and digital payroll and accounting systems.
Governance enhancements include CEO recruitment through merit-based checklists, offsite supervision to protect policyholders, grading systems to encourage competition, and risk-based audits of selected firms. Furthermore, digital claims settlement applications, dedicated call centres, dispute resolution committees, and the National Core Insurance Solution (NCIS) platform are being developed to integrate insurers on a single, transparent system, minimising fraud and operational irregularities.
Experts predict that these comprehensive reforms will not only strengthen the resilience and professionalism of Bangladesh’s insurance sector but also restore public confidence, fostering sustainable growth for years to come.
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