IDRA Launches Major Insurance Sector Reforms

Dhaka, Bangladesh: In the wake of recent mass movements and consequent political transitions, the interim government of Bangladesh has assumed responsibility with a firm commitment to comprehensive structural reforms across key sectors. Central to these initiatives is the nation’s insurance industry, which is now undergoing a significant transformation under the stewardship of the Insurance Development and Regulatory Authority (IDRA). The authority has embarked on an ambitious reform programme aimed at restoring public trust, strengthening governance, and aligning the sector with national development priorities.

Since assuming office, IDRA has implemented a comprehensive framework of 75 reform and development measures designed to ensure sustainable, long-term growth. These reforms focus on safeguarding policyholders, protecting shareholder interests, and fostering a trustworthy, disciplined, and technologically advanced insurance market. IDRA has structured its reform agenda into three pillars: administrative reform, legal reform, and digital reform, each tailored to Bangladesh’s current social and economic context.

Legal reforms form a cornerstone of this transformation. Amendments have been proposed to the Insurance Act, 2010, and the Insurance Development and Regulatory Authority Act, 2010, aiming to create a more effective, timely, participatory, and internationally aligned regulatory environment. In addition, the Insurance Resolution Ordinance, 2026, has been promulgated to rehabilitate financially distressed insurers while safeguarding the interests of policyholders. Professional development has also been prioritised through the establishment of the Bangladesh Chartered Insurance Institute Ordinance, 2026, and the Bangladesh Actuary Ordinance, 2026, which are expected to enhance expertise within the sector.

Regulatory updates have extended to solvency margins, management expenditure, corporate governance, CEO appointments, and the licensing of agents, surveyors, and advisors. Furthermore, the National Insurance Policy, 2014, has been revised and updated to the National Insurance Policy, 2025–30, reinforcing financial stability, accountability, and professional standards across both life and non-life insurance segments. Experts anticipate that these reforms will significantly strengthen the sector’s resilience.

Digital governance has been a major achievement. The upgraded Insurance Information Management System now integrates policyholder portals, mobile applications, e-KYC, agent licensing, electronic reporting, central data warehouses, and business intelligence services, ensuring enhanced transparency, accessibility, and efficiency. The sector development project, scheduled for implementation in 2026, will extend these modernisations to the Bangladesh Insurance Academy, General Insurance Corporation, and Life Insurance Corporation.

To promote good governance, IDRA has introduced grading systems for insurance companies, risk-based audits, and a structured, pool-based CEO appointment mechanism to ensure competent leadership. Digital claims settlement applications, a dedicated call centre, restructured dispute resolution committees, and the National Core Insurance Solution (NCIS) platform are being deployed to expedite customer service while preventing corruption and malpractice.

Summary of IDRA Reform Initiatives

With these integrated reforms, IDRA aims to restore confidence in Bangladesh’s insurance sector, ensuring a more transparent, professional, and resilient market that can play a pivotal role in the nation’s economic growth.