Claim settlement performance in Bangladesh’s life insurance sector improved significantly in the final quarter of 2025, although a substantial volume of policyholders are still awaiting their due payments, indicating that underlying structural challenges in the industry persist.
According to unaudited data from the Insurance Development and Regulatory Authority, total life insurance claims stood at 13,158 crore taka between October and December 2025. During the same period, insurers settled 8,755 crore taka, leaving an outstanding liability of 4,403 crore taka. The overall settlement rate rose sharply to 67 per cent, compared with just 35 per cent in the previous quarter.
Life insurance claims summary (Q4 2025)
| Indicator | Amount |
|---|---|
| Total claims | 13,158 crore taka |
| Claims settled | 8,755 crore taka |
| Outstanding claims | 4,403 crore taka |
| Settlement rate | 67% |
In terms of policy volume, the sector also recorded notable progress. Out of 2.843 million matured policies, insurers settled claims for approximately 1.658 million policies. However, nearly 1.185 million policyholders are still awaiting payment, highlighting the scale of pending obligations despite the quarterly improvement.
Industry stakeholders attribute the higher settlement rate in the final quarter to a combination of seasonal business concentration, stronger regulatory oversight, and liquidity improvements within insurance companies. Traditionally, the last quarter of the year accounts for a disproportionately large share of annual business activity, often estimated at 40 to 45 per cent, compared with 20 to 25 per cent in other quarters. This seasonal inflow of premiums typically strengthens cash availability, enabling insurers to clear a higher volume of claims.
Insurance expert and United Nations Development Programme consultant S. M. Ziaul Haque noted that the seasonal surge in business activity directly influences liquidity cycles in the sector, thereby improving settlement capacity during this period. He also observed that while some insurers maintain disciplined payout practices, a significant portion of companies continue to lag behind in timely settlements, affecting overall sector confidence.
Institutional performance data shows a clear divergence among insurers. Several leading companies have achieved near-complete or exceptionally high settlement ratios. One international life insurer has reportedly settled over 98 per cent of claims, while companies such as Pragati Life Insurance and Guardian Life Insurance have maintained settlement rates in the range of 97 to 98 per cent. These firms are said to rely on strong fund management systems and digital processing mechanisms, enabling claim payments within three to five days.
Conversely, the regulatory authority has identified underperforming insurers and introduced enhanced oversight measures, including special audits and grading systems. Preparations are also underway to introduce stricter legal provisions aimed at ensuring compliance and accountability among consistently irregular companies.
Despite the improvement in quarterly performance, analysts and stakeholders agree that long-standing issues such as uneven corporate governance, liquidity mismatches, and trust deficits continue to weigh on the sector. As a result, while recent figures indicate progress, the broader challenge of restoring full confidence in Bangladesh’s life insurance industry remains unresolved.