In a decisive move to modernise Bangladesh’s financial ecosystem, Dr Ahsan H. Mansur, Governor of Bangladesh Bank, has called upon the nation’s insurers to transition towards a fully cashless transaction model. Speaking at a high-profile event at the BIAM Foundation auditorium in Dhaka, the Governor underscored that digitisation is no longer a choice but a prerequisite for the sector’s survival and growth.
Table of Contents
A Blueprint for Digital Reform
The Governor’s remarks coincided with the official unveiling of the Insurance Development and Regulatory Authority (IDRA)’s new website and a comprehensive Digital Insurance Manual. Dr Mansur revealed that the IDRA is currently drafting formal guidelines to facilitate this shift, mandating that premium collections be processed exclusively through banking channels.
The Governor was candid in his assessment of the industry’s historical shortcomings. He observed that a preoccupation with short-term gains has frequently derailed the sector’s long-term potential. “We have lost our way by chasing immediate profits,” Dr Mansur remarked, adding that the central bank is committed to transforming insurance into a truly “productive sector” through rigorous governance and digital integration.
Transparency and Governance
A central theme of the Governor’s address was the critical link between transparency and revenue. He asserted that reducing cash-based transactions would naturally lead to increased national revenue and a more robust economy. However, he warned that technology alone is not a panacea.
“If we fail to implement effective corporate governance, digitisation will yield little fruit. The market should ideally move at its own pace, yet we often see it stifled. Responsibility in investment and premium management is paramount.”
His comments come amidst concerns regarding the liquidity of certain firms. While premiums are collected and investments made, some insurers have struggled to settle claims due to insufficient funds—a situation the Governor described as a failure of fund management.
Key Stakeholders and Their Visions
| Official | Organisation | Key Perspective |
| Dr Ahsan H. Mansur | Bangladesh Bank | Urged cashless premiums to boost GDP and transparency. |
| M. Aslam Alam | IDRA Chairman | Predicted major growth within 5 years via digital reforms. |
| B.M. Yousuf Ali | Insurance Forum | Requested central bank aid to ensure claim settlements. |
| Kazi Sakhawat Hossain | Insurance Assoc. | Praised the Digital Manual as a vital tool for all operators. |
Expanding the Market Horizon
Currently, the insurance penetration rate in Bangladesh remains modest. The Governor argued that for the national Gross Domestic Product (GDP) to see sustained growth, the insurance market must expand its reach to cover both movable and immovable assets.
Supporting this vision, IDRA Chairman M. Aslam Alam noted that the newly launched Digital Manual provides a transparent roadmap for laws, regulations, and administrative processes. He cautioned that if these institutional and digital reforms are not embraced now, the systemic issues plaguing the sector will only intensify.
The consensus among industry leaders at the event, including representatives from the Bangladesh Insurance Association (BIA) and the Bangladesh Insurance Forum (BIF), was clear: the path to a resilient financial sector lies in the synergy between regulatory oversight and technological innovation.