The Bangladesh insurance sector has been plunged into a state of legal uncertainty following a contentious directive from the Insurance Development and Regulatory Authority (IDRA). The regulator has ordered insurance firms to pay additional registration renewal fees for the year 2026, despite the fact that most companies had already settled their dues under the prevailing laws months ago.
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The Core of the Dispute
According to the Insurance Act 2010, companies must apply for registration renewal by 30 November of the preceding year. Consequently, for the 2026 term, firms calculated and paid their fees in November 2025 based on their gross premium earnings from the 2024 financial year.
However, on 4 February 2026, the government issued a gazette notification amending the Insurance Business Registration Fee Rules 2012, drastically increasing the fee structure. On 19 February, IDRA directed companies to pay the difference—a move industry leaders decry as an illegal “retroactive” tax.
Escalating Fee Structure
The amended rules outline a significant phased increase in costs for insurers over the next several years. Previously set at a flat rate of ৳1 per ৳1,000 of gross premium, the new rates are as follows:
| Period | New Registration Fee (Per ৳1,000 Gross Premium) |
| 2026 – 2028 | ৳2.50 |
| 2029 – 2031 | ৳4.00 |
| 2032 Onwards | ৳5.00 |
Allegations of Arbitrary Governance
Industry insiders suggest that this sudden five-fold hike is a strategic manoeuvre to settle outstanding bills with “Duar Services Limited,” a controversial SMS service provider. Following the 2024 uprising, many insurers refused to pay for these services. Critics argue that IDRA is now attempting to recover these costs by inflating registration fees under the guise of providing “free” SMS services.
Furthermore, reports have emerged of IDRA officials allegedly threatening to withhold registration certificates—effectively halting a company’s right to conduct business—unless the additional fees are paid immediately.
Industry Leaders Speak Out
Prominent figures within the Bangladesh Insurance Association (BIA) and the Bangladesh Insurance Forum (BIF) have voiced their opposition, noting that the IDRA Act does not grant the regulator the authority to collect fees retrospectively.
Brigadier General (Retd) Md. Shafique Shamim, Secretary General of BIF, argued that the hike should only be applicable from 2027. “The fees for 2026 have already been processed and audited as 2025 expenditures,” he noted. “Demanding more now creates an accounting nightmare and an undue financial burden.”
Similarly, Imam Shaheen, CEO of Asia Insurance, highlighted that the window for renewal had already closed by the time the gazette was published. “The authorities cannot legally re-charge a fee after the statutory period for payment has expired. This will significantly inflate the operating expenses of every insurer in the country.”
A Legal Impasse
As it stands, the insurance sector is staring at a stalemate. While IDRA maintains its stance, CEOs argue that forcing a 2026 payment based on a February 2026 law violates the principle of non-retroactivity. If a compromise is not reached, the dispute may well move to the courts, potentially disrupting the entire financial protection grid of the nation.