The Financial Institutions Division (FID) of the Ministry of Finance has initiated a high-stakes legislative review aimed at modernising the nation’s insurance framework. On Monday, 19 January 2026, two pivotal meetings were scheduled at the Insurance Development and Regulatory Authority (IDRA) headquarters to deliberate on the draft Insurers’ Resolution Ordinance 2025 and extensive amendments to the Insurance Act 2010.
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Navigating Sectoral Stability and Governance
Presided over by Mr Md. Sayeed Kutub, Additional Secretary of the FID, the morning session focused on the revolutionary Insurers’ Resolution Ordinance 2025. This ordinance is designed to create a “safety net” for the industry, providing an institutional mechanism to resolve financial crises within insurance firms without jeopardising the assets of policyholders.
The afternoon session pivoted towards the Insurance Act 2010. The proposed amendments seek to purge outdated clauses and introduce rigorous transparency requirements, effectively bringing Bangladesh’s insurance regulations in line with global standards of corporate governance.
Legislative Agenda: FID Policy Review
| Meeting Topic | Objective | Key Participants |
| Resolution Ordinance 2025 | Risk management & institutional stability | IDRA, Jiban Bima, Sadharan Bima |
| Insurance Act 2010 (Revision) | Enhancing accountability & governance | Legislative Division, BIA, BIF |
| Status of Discussion | Active Review | FID, IDRA & Industry Stakeholders |
| Governance Goal | Policyholder protection | Ministry of Finance (FID) |
Stakeholder Engagement Amidst Political Headwinds
The FID has invited a broad spectrum of industry experts and regulatory bodies to the table, including the Bangladesh Insurance Academy, the Surveyors Association, and the Bangladesh Insurance Forum. The goal is to ensure that the new laws are not merely theoretical but practically applicable to the current market.
However, the Bangladesh Insurance Association (BIA), representing the owners of insurance companies, has expressed reservations regarding the timing. On Sunday, the BIA formally petitioned the FID for a deferral. The association highlighted that its President is currently preoccupied as a candidate in the 13th National Parliamentary Election 2026.
In their correspondence, the BIA emphasised that these legislative changes are of “supreme importance” to the sector’s future. They argued that such monumental policy shifts require the presence and direct input of the association’s leadership, which is currently focused on the national polls.
The Path Forward
Despite the BIA’s request for a postponement until after the elections, the FID is under significant pressure to stabilise the financial sector. With public trust in insurance at a critical juncture, these reforms are seen as essential “oxygen” for the industry. Whether the ministry yields to the BIA’s request or proceeds with a representative quorum will determine the pace of reform for the coming decade.