The Bangladeshi insurance sector is currently grappling with significant administrative instability and operational uncertainty. Despite the timely submission of registration renewal fees by a majority of insurance firms, the Insurance Development and Regulatory Authority (IDRA) has yet to issue or renew licences for the 2025 calendar year. This delay has triggered a wave of concern regarding the legality of ongoing operations and the capacity for future business expansion.
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Statutory Compliance and the Legislative Framework
Under the provisions of Section 11(2) of the Insurance Act, 2010, all insurance companies operating within the jurisdiction are mandated to remit their annual registration renewal fees by 30 November of each preceding year. For the 2025 fiscal cycle, most companies adhered to this statutory deadline, submitting their payments in November 2024.
However, a procedural deadlock has emerged. While those who paid the fees await their formal documentation, others have found their applications stalled due to a retrospective adjustment in the fee structure. This administrative bottleneck is now overlapping with the preparations for the 2026 renewal cycle, creating a cumulative backlog that threatens to disrupt the financial ecosystem of the entire industry.
The Dispute Over Revised Fee Structures
The crux of the current unrest lies in the Insurance Business Registration Fee Rules, 2012, and subsequent amendments. Historically, insurance providers were required to pay a renewal fee at a rate of 1 Taka per 1,000 Taka of gross premium income. However, a revised government gazette, published in February—months after the November submission deadline—significantly escalated these costs.
According to IDRA data, the amended notification outlines a staggered increase:
2026–2028: The fee rises to 2.50 Taka per 1,000 Taka of gross premium.
Subsequent Stages: The rate is scheduled to increase further, reaching up to 5 Taka per 1,000 Taka.
Industry stakeholders, including 67 insurance institutions, have expressed inability or reluctance to comply with these new rates. Legal experts and sector leaders argue that since the applications and fees for 2025 were submitted under the existing laws in November, the retrospective application of a February gazette is legally untenable.
“We submitted our renewal applications in November according to the law, yet the fees were increased in February. The Association has decided not to provide the additional fees under these circumstances,” stated S.M. Nuruzzaman, Chief Executive Officer of Zenith Islami Life.
Intervention by the Bangladesh Insurance Association
The Bangladesh Insurance Association (BIA), the apex body representing insurance company owners, has formally intervened to prevent a total breakdown of administrative order. During the 227th Executive Committee meeting held on 27 April, members expressed profound indignation regarding the delay. The primary concern raised was that the lack of valid licences would lead to a crisis of confidence among policyholders and hinder the ability to update essential corporate documents.
Sheikh Kabir Hossain, the President of BIA (and successor representatives), has urged the government to amend the gazette to resolve the impasse. In a formal letter dispatched last week to the IDRA Chairman, BIA President Said Ahmed highlighted the following demands:
Immediate issuance of 2025 licences for companies that met the 30 November deadline.
Government intervention to rectify the gazette to remove the complexities surrounding the 2026 fee structure.
Avoidance of “anarchy” within the sector caused by administrative delays.
The Regulatory Response
In response to the escalating tension, IDRA has acknowledged the grievances. Said Ahmed noted that during a meeting with the former IDRA Chairman on 1 March, a delegation was given positive assurances that licences would be processed without the immediate burden of the increased 2026 fees. However, these assurances have yet to materialise into issued documents for the majority of firms.
Md. Fazlul Haque, the Acting Chairman of IDRA, recently clarified that the renewal process for compliant companies is currently “underway”. He confirmed that the BIA’s appeal is being considered and that the authority is engaging in discussions with the Financial Institutions Division of the Ministry of Finance to find a viable legal resolution.
| Fee Structure Comparison | Old Rate (per 1k Gross Premium) | New Rate (2026-2028) | Final Targeted Rate |
| Registration Fee | 1.00 Taka | 2.50 Taka | 5.00 Taka |
Until a definitive gazette amendment or a formal waiver is issued, the insurance sector remains in a state of suspended animation, with executives warning that the prolonged lack of valid certification will inevitably erode public trust in the national insurance mark