The Insurance Development and Regulatory Authority (IDRA) of Bangladesh is preparing to shift its headquarters from the commercial hub of Dilkusha to Agargaon in Dhaka. The proposed relocation is set to increase the agency’s annual operational expenses by BDT 1.75 crore, representing a 29.5 per cent surge.
Documents reveal that floor rental charges alone will rise sharply by 81.7 per cent, pushing annual rent from BDT 3.19 crore to BDT 5.80 crore. Despite recently applying for government clearance to secure nearly 32,000 square feet at the Islamic Development Bank (IDB) Bhaban in Agargaon, the regulator formed a three-member committee just two days later to search for an even larger premises measuring around 50,000 square feet elsewhere in the capital.
Escalating Expenses and Rental Terms
At present, the IDRA operates out of SBC Tower in Dilkusha, occupying 29,876 square feet at a monthly rate of BDT 78 to BDT 80 per square foot. The move to IDB Bhaban would cover 31,989 square feet across the 11th, 15th, 16th, and 17th floors, alongside space on the ground floor, at a negotiated monthly rate of BDT 130 per square foot.
Although the base rent increases significantly, the new rate is an all-inclusive package. It covers parking for 20 vehicles, security, water supply, sewage, generator maintenance, and central air conditioning—services for which the IDRA currently pays an additional BDT 85.7 lakh annually at Dilkusha. Accounting for these consolidated services, the authority’s overall annual operational budget will rise from BDT 5.95 crore to BDT 7.70 crore.
| Cost Component / Metric | Current Premises (Dilkusha) | Proposed Premises (Agargaon) | Financial Variation |
| Total Floor Area | 29,876 sq ft | 31,989 sq ft | +2,113 sq ft |
| Monthly Rent (per sq ft) | BDT 78 – 80 | BDT 130 (All-inclusive) | +BDT 50 – 52 |
| Annual Base Floor Rent | BDT 3,19,56,960 | BDT 5,80,80,000 | +BDT 2,61,23,040 (+81.7%) |
| Separate Service Charges | BDT 85,69,944 | Included in rent | -BDT 85,69,944 |
| Annual Electricity Bill | BDT 1,57,00,000 | BDT 1,57,00,000 | No change |
| Disaster Recovery Centre Rent | BDT 32,76,000 | BDT 32,76,000 | No change (Retained in Dilkusha) |
| Total Annual Operating Cost | BDT 5,95,02,904 | BDT 7,70,56,000 | +BDT 1,75,53,096 (+29.5%) |
| Disaster Recovery Area | 3,500 sq ft (7th Floor) | Retained in Dilkusha | Relocation deemed high-risk |
| Standard IDB Commercial Rate | N/A | BDT 250 per sq ft | Discounted for IDRA |
| Initial IDB Offer (excl. VAT) | N/A | BDT 151 per sq ft | Reduced after negotiation |
| IDRA Counter-Offer Rate | N/A | BDT 118 per sq ft | Final settled at BDT 130 |
Structural Constraints and Industry Concerns
The authority has cited inadequate natural light, poor ventilation, and renovation limitations at SBC Tower—where it has been based since 2014—as primary reasons for the shift. Officials noted that the cramped environment hampers daily operations, making an upgraded facility necessary for the sector’s administrative efficiency. Furthermore, the sensitive Disaster Recovery (DR) Centre on the 7th floor of SBC Tower will remain in Dilkusha, as moving its heavy technical equipment carries significant risks and high costs.
Industry stakeholders have voiced reservations regarding the timing and financial wisdom of the move. Chief executives from private insurance firms pointed out that higher regulatory overheads might eventually trickle down to insurers, who fund a portion of the regulator’s upkeep. Moreover, with most insurance headquarters situated in the Motijheel-Dilkusha financial district, shifting the regulator to Agargaon will inevitably increase commute times and administrative delays for routine communications.
Former IDRA member and insurance analyst Sultan-ul-Abedin Molla highlighted that substantial funds previously spent on interior decor at the current headquarters will be written off, while a similar non-recoverable expense will be incurred for the new venue. He advised that rather than moving between rented properties, the authority should focus on constructing or acquiring its own permanent building to ensure long-term cost efficiency and institutional stability.
