Majority of Non-Life Insurance Claims Unpaid

In 2025, Bangladesh’s non-life insurance sector settled claims worth 1,242 crore taka, while a significant 3,599 crore taka remained unpaid. This means only 8.56% of total claims were disbursed, leaving 91.44% unresolved, reflecting a persistent challenge in claims management within the industry.

The Insurance Development and Regulatory Authority (IDRA) published these figures in its four quarterly reports for 2025, based on data provided by 46 non-life insurance companies operating across the country.

During the year, insurers received 1,740 crore 37 lakh taka in new claims. Adding these to the 3,055 crore 80 lakh taka of pending claims carried over from December 2024, the sector faced a total claim liability of 4,795 crore 17 lakh taka.

Of this total, 1,242 crore 25 lakh taka was settled, resulting in an average claim settlement rate of 8.56% for the year. Quarterly performance showed variation, with settlement rates influenced by both pending legacy claims and new claim inflows:

The first quarter reported the highest settlement rate at 90%, largely due to the clearance of claims pending from previous years. Subsequent quarters showed much lower settlement percentages: 8.32% in Q2, 7.55% in Q3, and 9.37% in Q4.

IDRA highlighted that the large volume of unresolved claims, amounting to 3,599 crore taka by the end of 2025, poses a risk to policyholder confidence. The authority urged insurance companies to expedite claim processing, improve operational efficiency, and enhance transparency in settlements.

The substantial backlog of claims indicates that the non-life insurance sector must undertake systemic reforms to ensure timely compensation, strengthen customer trust, and support sustainable growth in the industry.