Bangladesh’s insurance sector must accelerate digitalisation, strengthen corporate governance and reinforce regulatory oversight to regain public confidence and unlock its growth potential, speakers said at a seminar, as policymakers and industry leaders called for structural reforms to address longstanding weaknesses in the sector.
Prime minister’s finance and planning adviser Rashed Al Mahmud Titumir said years of weak regulation, governance failures and limited technology adoption have eroded public trust, making comprehensive reform unavoidable.
Addressing a seminar titled Post-Budget Insurance Sector – Opportunities and Challenges, organised by the Insurance Reporters’ Forum (IRF) in Dhaka on Saturday, Titumir said inadequate digitalisation continues to undermine customer service, claims settlement, data management and corporate governance. Wider use of technology would improve operational efficiency while strengthening transparency and accountability, he said.
Titumir said Bangladesh’s vulnerability to climate change has made a resilient insurance industry increasingly important for managing disaster-related losses and safeguarding economic security. However, technological limitations, weak management and policy shortcomings continue to constrain the sector’s ability to fulfil that role.
He called for sector-specific audits and stronger institutional capacity for the Insurance Development and Regulatory Authority (IDRA), saying conventional supervision alone would be insufficient to restore confidence.
IDRA Chairman Mir Nadia Nivin said sustainable reform should focus on rebuilding consumer confidence, strengthening regulation, promoting long-term investment and developing skilled human resources.
She said outstanding insurance claims have reached about Tk7,000 crore, with disputes stemming from both industry-wide and company-specific problems. The regulator has already initiated measures to resolve the backlog, she said.
Nivin said legal and administrative hurdles continue to delay liquidation of assets held by several non-compliant insurers. She also advocated introducing risk-based supervision and expanding insurance coverage in agriculture, climate and microinsurance.
Bangladesh Insurance Association (BIA) President Sayeed Ahmed called for insurance commissions to remain free from commercial conflicts of interest and irregularities. He also urged stricter enforcement of mandatory motor vehicle insurance and wider coverage across emerging sectors.
Bangladesh Insurance Forum (BIF) President BM Yousuf Ali said prompt claims settlement by many domestic insurers often goes unnoticed, while delayed payments dominate public discussion. Better communication of positive industry performance would help improve public confidence, he said.
Zenith Islami Life Insurance PLC Managing Director and CEO SM Nuruzzaman said liquidity pressures are more severe in the life insurance segment than in non-life insurance. Easier access to bank finance and simplified asset management would help ease the crisis, he said.
Dhaka University Banking and Insurance Department Professor Md Saidul Islam Jahid said low insurance penetration reflects weak regulation, short-term business practices and inadequate long-term planning. Expanding insurance coverage for agriculture and climate risks has become increasingly important, while sustainable growth will remain difficult without addressing moral hazard, weak corporate governance and accountability gaps across the wider financial system, he said.
Presenting the keynote paper, Daily Jugantor Business Editor Monir Hossain said Bangladesh’s insurance industry ranks 60th globally despite the country’s economy being the world’s 35th largest, highlighting the sector’s untapped potential. Insurance penetration, per capita insurance expenditure and global market share all lag behind regional peers, he said.
He identified weak governance, a persistent trust deficit, limited public awareness, inadequate regulatory capacity, shortages of skilled professionals, slow technology adoption and poor transparency as the industry’s principal challenges. Delayed claims settlement and irregularities have further damaged the sector’s credibility, he said.
The paper said limited policy support in successive national budgets and excessive licensing have weakened the industry’s development. It recommended implementing the National Insurance Policy, strengthening IDRA’s capacity, introducing risk-based supervision, accelerating digital transformation, improving transparency, clearing outstanding claims and classifying insurers according to service quality.
Monir Hossain said media scrutiny should be viewed as a catalyst for reform, urging regulators, insurers and journalists to work together to improve transparency and rebuild public trust.
IRF President Golam Maola chaired the seminar, which was attended by senior insurance executives, researchers and journalists.
