Insurers Seek License Fee Waiver from IDRA

The Bangladesh Insurance Association (BIA) has formally requested the Insurance Development and Regulatory Authority (IDRA) to waive the remaining license renewal fees for both life and non-life insurance companies for the 2026 calendar year. This appeal, aimed at easing the financial and administrative burden on the sector, was articulated in a letter despatched to the IDRA Chairman on Sunday, 8 March.

The correspondence, signed by BIA Vice-President Adiba Rahman, draws specific attention to existing regulatory frameworks and two prior memorandums issued by the authority. The BIA’s primary contention is that the industry has already demonstrated significant compliance with the prevailing statutes, necessitating a pragmatic reprieve for the upcoming period.

The Regulatory Context

Under the current legislative framework governing the insurance sector, companies are bound by strict timelines regarding their operational permits. The BIA highlighted the following sections of the Insurance Act:

Section 11(2): Mandates that any insurer seeking to renew their registration for a specific year must submit their application to the authority no later than 30 November of the preceding year, accompanied by the requisite fees.

Section 11(3): Dictates that upon receipt of a valid application and the associated payment, the IDRA shall proceed with the renewal of the insurer’s license.

According to the BIA, the vast majority of domestic insurance firms have already fulfilled their obligations for the 2026 cycle, having deposited their registration fees by the 30 November 2025 deadline.

High-Level Negotiations

The formal letter follows a strategic meeting held on 1 March 2026, where a high-level BIA delegation met with the IDRA Chairman. During these deliberations, the Association urged the regulator to take “necessary measures” to exempt companies from the obligation of paying any outstanding or residual renewal fees for 2026.

Recognising that such a move may require a shift in formal policy, the BIA further suggested that the IDRA initiate an amendment to the official government gazette if required to legalise the waiver.

Compliance Summary and Deadlines

The following table outlines the statutory timeline and the current status of the 2026 renewal process:

Industry Implications

The insurance sector in Bangladesh is currently navigating a complex economic landscape, where liquidity management and operational costs are of paramount concern. By seeking a waiver of the “remaining” fees, the BIA aims to provide fiscal breathing room for its members. The Association argues that since the bulk of the regulatory requirements have been met well in advance, a gesture of leniency from the regulator would foster a more supportive environment for the industry’s growth.

The IDRA has yet to issue a public response to the proposal. Should the authority agree to the BIA’s terms, it could signal a more collaborative era of regulation between the state and private insurers.