Strict Guidelines for Insurance Advisor Appointments

In a decisive move to strengthen governance, transparency, and professional standards within the insurance sector, the Insurance Development and Regulatory Authority (IDRA) of Bangladesh has introduced a new regulatory framework for the appointment of insurance company advisors. The directive was officially published in an additional issue of the Bangladesh Gazette on Wednesday, 21 January, although it is effective retroactively from its issuance date of 7 January 2026.

The regulation, formally titled the Insurance Company Advisor Appointment (Qualifications and Experience) Regulations, 2026, has been promulgated under Sections 148 and 81 of the Insurance Act, 2010, with prior approval from the Government of Bangladesh. According to industry observers, the new framework is expected to eliminate longstanding ambiguities surrounding advisor recruitment and promote consistent professional standards across the sector.

Structured Qualifications and Experience Requirements

Under the new regulations, insurance companies may only appoint advisors who meet prescribed qualifications and experience criteria and receive IDRA’s approval. The framework accommodates multiple professional pathways, enabling individuals from diverse backgrounds to serve as advisors while ensuring a high level of competency.

Senior management roles include CEO, MD, additional/ deputy managing directors, CFO, company secretary, chief investment officer, chief risk officer, and heads of internal audit and compliance.

Disqualification Criteria

To prevent conflicts of interest and uphold ethical standards, the regulations bar certain individuals from serving as advisors. Prohibited persons include relatives of company founders or directors, defaulters, bankrupts, those convicted of ethical or financial crimes, individuals charged with money laundering, and current directors of banks, insurance, or finance companies.

Appointment Procedures and Tenure

Insurance companies must submit a justification for the appointment, draft contract, CV, and all educational and professional certificates to IDRA. Advisors may be contracted for up to three years, with a maximum service age of 76 years, subject to regulatory approval. These positions are not considered part of the company’s permanent workforce.

Remuneration and Contract Termination

Compensation and benefits are determined by the company’s board but must not exceed the remuneration of the chief executive. The contract typically cannot be altered during its term and may be terminated by either party with one month’s notice, subject to the settlement of dues.

Experts suggest that these regulations will professionalise advisor recruitment, reinforce regulatory oversight, and ultimately enhance customer protection and sector stability over the long term.