Bangladesh’s Insurance Development and Regulatory Authority (IDRA) is preparing to relocate its head office from Dilkusha to Agargaon in Dhaka. The proposed shift will inflate the watchdog’s annual operational expenditure by BDT 1.75 crore, marking a 29.5 per cent increase on current spending.
Official documents show that base floor rental charges alone will jump by 81.7 per cent, rising from BDT 3.19 crore to BDT 5.80 crore per year. However, the plan has raised eyebrows across the financial sector. Just two days after seeking government clearance for a 32,000-square-foot facility at the Islamic Development Bank (IDB) Bhaban in Agargaon, the regulator formed a three-member committee to search for a much larger space measuring roughly 50,000 square feet elsewhere in the capital.
Revised Rental Terms and Financial Breakdown
The IDRA currently 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. Moving to IDB Bhaban would secure 31,989 square feet spread across the 11th, 15th, 16th, and 17th floors, alongside a ground-floor section, at a negotiated rate of BDT 130 per square foot.
While the base rent increases significantly, the new figure represents an all-inclusive deal. It incorporates 20 vehicle parking spots, security services, water, sewerage, generator maintenance, and central air conditioning. At present, the regulator pays an additional BDT 85.7 lakh each year for these services at Dilkusha. Accounting for these consolidated amenities, total annual running costs will climb from BDT 5.95 crore to BDT 7.70 crore.
| Financial Parameter or Metric | Current Premises (Dilkusha) | Proposed Premises (Agargaon) | Financial & Spatial Impact |
| Total Floor Space | 29,876 sq ft | 31,989 sq ft | +2,113 sq ft increase |
| Monthly Rate (per sq ft) | BDT 78 – 80 | BDT 130 (All-inclusive) | +BDT 50 – 52 increase |
| 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 new rent | Saved as standalone cost |
| Annual Electricity Outlay | BDT 1,57,00,000 | BDT 1,57,00,000 | No change |
| Disaster Recovery Centre Rent | BDT 32,76,000 | BDT 32,76,000 | Unchanged (Kept at Dilkusha) |
| Total Annual Operating Cost | BDT 5,95,02,904 | BDT 7,70,56,000 | +BDT 1,75,53,096 (+29.5%) |
| Disaster Recovery Floor Space | 3,500 sq ft (7th Floor) | Retained at Dilkusha | Relocation assessed as high-risk |
| Standard IDB Commercial Rate | N/A | BDT 250 per sq ft | Standard commercial asking price |
| Initial IDB Discount Offer | N/A | BDT 151 per sq ft | Excluded VAT |
| IDRA Counter-Offer Rate | N/A | BDT 118 per sq ft | Base BDT 75 + Services BDT 43 |
| Final Agreed Rate | N/A | BDT 130 per sq ft | Excludes VAT; 3-year term |
Relocation Motives and Industry Opposition
The watchdog points to structural deficiencies at SBC Tower—its home since 2014—including restricted natural light, inadequate ventilation, and rigid limits on interior alterations. Officials maintain that the current layout forces staff into cramped working conditions. Crucially, the 3,500-square-foot Disaster Recovery (DR) Centre on the seventh floor of SBC Tower will stay in Dilkusha. Moving its delicate, heavy technical machinery poses serious operational risks and prohibitive expenses.
Industry leaders remain far from convinced. A chief executive of a private insurance firm cautioned that the regulator’s inflated overheads could ultimately be passed on to insurers, who shoulder a portion of the authority’s funding. Distance is another growing concern. With most insurer headquarters anchored in Motijheel and Dilkusha, shifting the regulator to Agargaon will inevitably lengthen travel times and delay routine official interactions.
Former IDRA member and insurance analyst Sultan-ul-Abedin Molla urged the board to look beyond temporary leases. Capital spent on interior fit-outs at SBC Tower will yield zero resale value, and fitting out another rented premises will only repeat that waste. Building or purchasing a permanent home would be far wiser, ensuring long-term financial stability while establishing a lasting presence for the national insurance regulator.
