IDRA without chairman, insurance sector stalls

Staff Correspondent: The Insurance Development and Regulatory Authority (IDRA), the main regulator of Bangladesh’s insurance sector, is facing a serious operational slowdown as the position of chairman has remained vacant for more than two weeks.

The absence of a chairman has created a significant policy and administrative vacuum at the regulator, delaying critical decisions such as policy approvals, settlement of insurance claims and oversight of irregularities in insurance companies.

Industry insiders say the situation is creating uncertainty among investors and policyholders, while also slowing down long-term reforms in the sector.

Dr M Aslam Alam, chairman of IDRA, submitted his resignation on March 2, 2026 to the Secretary of the Financial Institutions Division, citing personal reasons.

Following his resignation, the regulator has been operating without a chief, triggering a leadership crisis in the organisation.

The government appoints a new chairman within two to three days after a resignation or the completion of a chairman’s term. However, more than two weeks have passed since Dr M Aslam Alam stepped down and the government has yet to appoint a successor. According to sources familiar with the matter, no acting chairman has been assigned either.

Dr M Aslam Alam, a former senior secretary to the government, joined IDRA as chairman on September 9, 2024. He was appointed for a three-year term, which was scheduled to run until September 8, 2027.

The leadership gap has begun to affect several key regulatory functions.

Licensing and renewal processes for life and non-life insurance companies have stalled, as many of these approvals require the chairman’s authorisation. Decision-making related to resolving disputes and operational issues in insurance companies has also slowed.

Oversight of financial transparency and irregularities in insurance companies has weakened, raising concern among industry stakeholders about governance and compliance.

The lack of leadership has also affected the regulator’s ability to address delays in insurance claim settlement. Without clear directives from the top, initiatives aimed at expediting claim payments to policyholders are moving slowly.

Market analysts warn that prolonged inactivity at the regulator could erode confidence among policyholders as well as domestic and foreign investors.

They also caution that the current situation may hamper ongoing reforms intended to strengthen governance and modernise the country’s insurance sector.

Experts say a prolonged vacancy at the top of a specialised regulatory body like IDRA poses risks to the discipline and stability of the insurance industry.

They urge the government to appoint a competent and credible chairman as soon as possible to restore regulatory effectiveness and ensure continuity in policy execution.

Without swift action, they warn, the operational stagnation could deepen and further weaken confidence in the country’s insurance market.