Experts call for proper implementation of Insurance Act for sector reform

Business Report :

Experts have stressed that meaningful reform of Bangladesh’s insurance sector is only possible if the existing Insurance Act-2010 is properly implemented. The remarks came during a discussion on the proposed amendments to the Act, organized by Insurance News BD at Dhaka Reporters Unity on Saturday.

Speakers expressed concerns that the proposed amendment focuses more on regulation than development, giving the Insurance Development Regulatory Authority (Idra) powers to approve top management appointments while ignoring industry growth and customer protection. They also criticized the lack of action on recovering embezzled funds in life insurance companies and ensuring payment of outstanding claims, leaving many policyholders at risk.

Sultan-ul-Abedin Molla, former Idra member, said the insurance sector is underdeveloped due to low awareness and that the amendment fails to propose concrete measures for industry development.

Kazi Md Mortuza Ali of Bangladesh Institute for Professional Development highlighted unclear definitions in the amendment, limited focus on risk management, and potential adverse effects of allowing microcredit institutions to enter insurance business, which could undermine established insurers.

Experts urged a balanced approach that prioritizes both regulation and development, strengthens industry governance, promotes public awareness, and ensures protection of policyholders’ rights to build a robust and trustworthy insurance sector.