Crucial FID Meetings to Reform Bangladesh Insurance Laws

In a significant move to overhaul the regulatory landscape of the national insurance sector, the Financial Institutions Division (FID) of the Ministry of Finance has convened two high-priority meetings today, Monday, 19 January 2026. The sessions are dedicated to reviewing the proposed amendments to the Insurance Act 2010 and the newly drafted Insurers’ Resolution Ordinance 2025.

Strategic Legislative Overhaul

The meetings, held at the conference room of the Insurance Development and Regulatory Authority (IDRA), signify a concerted effort by the interim administration to modernise financial governance. Mr Md. Sayeed Kutub, Additional Secretary of the FID (Insurance and Capital Markets Division), is presiding over the discussions.

The first session, commencing at 11:00 am, focuses on the Insurers’ Resolution Ordinance 2025. This draft legislation aims to establish a robust institutional framework for managing financial distress within insurance firms, safeguarding policyholders’ interests, and ensuring overall sectoral stability.

The second session, scheduled for 2:00 pm, addresses the long-awaited amendments to the Insurance Act 2010. These updates are intended to align existing laws with international best practices and strengthen corporate governance across the industry.

Agenda and Stakeholder Participation

Broad Institutional Representation

The FID has invited a comprehensive array of stakeholders to ensure that the reforms are inclusive and technically sound. The list of invitees includes representatives from:

Legislative and Parliamentary Affairs Division

Insurance Development and Regulatory Authority (IDRA)

Sadharan Bima Corporation and Jiban Bima Corporation

Bangladesh Insurance Academy

Bangladesh Insurance Association (BIA)

Bangladesh Insurance Forum and Surveyors Association

BIA Requests Deferral Amid Election Fever

Despite the urgency of these reforms, the Bangladesh Insurance Association (BIA), the primary trade body for insurance owners, has formally requested a postponement. In a letter sent to the FID on Sunday, the BIA noted that its President, Mr Sheikh Kabir Hossain (referred to in current context as Sayeed Ahmed), is currently campaigning as a candidate for the 13th National Parliamentary Election 2026.

The BIA argued that given the immense gravity of the proposed Ordinance and the Act amendments, the President’s personal presence is essential. Consequently, the association has urged the ministry to reschedule these pivotal discussions for a date following the conclusion of the national polls.

As the government pushes for “Macroeconomic Consolidation,” the outcome of these meetings—whether they proceed today or are deferred—will dictate the pace of transparency and trust-building in a sector often criticised for its liquidity challenges and slow claim settlements.