Gazi Anowar :
Despite the establishment of the Insurance Development and Regulatory Authority (IDRA) in 2010 to bring order and accountability to Bangladesh’s troubled insurance sector, the industry remains mired in chaos and irregularities even after 14 years.
Persistent allegations of delayed claim settlements, misappropriation of customer premiums, prolonged use of acting CEOs, and blatant violations of insurance laws have continued unabated across both life and non-life insurance companies.
Industry experts cite both weak regulatory oversight and a lack of ethical mindset among stakeholders as key reasons behind the sector’s ongoing troubles.
According to the draft annual report of IDRA for FY 2023-24, as of 2023, 36 life insurance companies collectively owe over Tk 12,051 crore to 2.7 million policyholders. Of this amount, only Tk 8,729 crore has been paid. In 2024 alone, total claim submissions stood at over Tk 12,965 crore, while actual disbursements reached just Tk 8,590 crore.
Many policyholders have waited years, even beyond a decade, to receive their dues. Shahina Akter, a resident of Chandpur, purchased a 10-year policy from Sunlife Insurance in 2008. The policy matured in 2018, yet she has not received any payout after six years of repeated follow-ups, even incurring debts while trying to recover her money.
Fraud has also plagued the sector. In 2023, 93 clients of Jamuna Life Insurance’s Chattogram branch were defrauded of nearly Tk 3 crore under false pretenses. Despite multiple complaints filed with IDRA, victims ultimately had to turn to the courts for justice.
