Global Insurance PLC has failed to reinsure policies valued at approximately 55.5 billion taka, in clear breach of statutory requirements. According to the Insurance Act 2010, insurance companies must arrange reinsurance for all re-insurable policies; failure to do so can result in suspension or cancellation of the company’s licence. The omission exposes both the insurer and its clients to heightened risk, while depriving the state-run reinsurer, General Insurance Corporation (GIC), of significant premium revenue.
The Insurance Development and Regulatory Authority (IDRA) commissioned a special audit of Global Insurance’s 2022 operations, carried out by UHY Saiful Shamsul Alam & Co. The audit uncovered substantial irregularities in the company’s management of re-insurable policies.
Out of 3,022 insurance policies issued from seven branch offices in 2022, auditors identified 1,249 policies that required reinsurance. Alarmingly, 1,012 of these—representing roughly 81%—were not reinsured. The total insured value of policies left unreinsured reached 2,598.12 crore taka, with 555.19 crore taka specifically classified as re-insurable. The audit annex details 83 policies as examples, showing the scale of regulatory non-compliance.
Key Examples of Unreinsured Policies
| Policy Type | Number of Policies | Total Insured Amount (Taka) | Re-insurable Amount (Taka) |
|---|---|---|---|
| Fire Insurance | 7 | 21,85,65,000 | 7,85,65,000 |
| Motor Insurance | 1 | 77,00,000 | 32,00,000 |
| Marine Cargo | 75 | 50,49,41,279 | 27,99,41,279 |
The failure to reinsure constitutes a direct violation of the Insurance Act, placing the company at financial risk and limiting its capacity to honour large claims.
Under Section 10(1)(j) of the Insurance Act 2010, IDRA has the authority to suspend or revoke the licence of companies that fail to adequately manage reinsurance. A hearing addressing 32 alleged irregularities, including the failure to reinsure, was held on 23 July 2025. Despite clear breaches of the law and IDRA circulars, no fines or disciplinary measures were imposed. The law division of IDRA recommended monitoring and cautionary measures for the company, though it is unclear whether any further action was subsequently taken.
Industry analysts warn that neglecting reinsurance obligations can severely compromise an insurer’s solvency in the event of large claims. Historical precedents reinforce this risk: in 2015, Standard Insurance Limited had its licence suspended for failing to reinsure 46.33 crore taka in policies.
Efforts to obtain a statement from Global Insurance PLC were initially unsuccessful, and despite assurances to respond, the company has not issued further comment.