Aslam alam's DOER favoritism; Insurer's license renewal in crisis

Staff Reporter: The Insurance Development and Regulatory Authority (IDRA) is facing strong criticism after abruptly increasing insurance company registration renewal fees by up to five times, a move that has stalled licence renewals for nearly all private life and non-life insurers across the country. The sudden hike is widely alleged to stem from the former IDRA Chairman Dr. M. Aslam Alam’s close association with the controversial firm DOER Service Limited, an SMS-based service provider.

According to industry sources, insurance companies had already paid the renewal fees for 2026 under the old rules by the legal deadline of 30 November 2025. The fee at that time was fixed at Tk 1 per thousand taka of gross premium earned in the previous year. However, on 4 February 2026 the government amended the Insurance Business Registration Fee Regulations-2012, and on 19 February IDRA issued a directive demanding payment at the new, much higher rates. Companies that refuse or delay the additional payment are now seeing their licence renewals blocked, raising the serious risk that many insurers could soon be operating illegally without valid licences.

The amended regulations set the new renewal fees as follows: Tk 2.50 per thousand taka of gross premium for the years 2026, 2027 and 2028; Tk 4 per thousand for 2029, 2030 and 2031; and Tk 5 per thousand from 2032 onwards. Legal experts have described the move as arbitrary and potentially illegal, arguing that IDRA has no authority under the Insurance Act-2010 to impose higher fees retrospectively after companies have already paid and the financial year accounts have been finalised.

The controversy deepened when it emerged that insurance companies had long objected to using DOER Service Limited but were overruled by IDRA. After the mass uprising of July 2024, most companies stopped settling dues to the firm. Industry insiders claim the steep fee increase is an indirect way to recover those payments and provide financial benefit to the private service provider. Questions have also been raised about the rapid rebranding of the service to “IIMS” (formerly UMP Service), which many see as an attempt to mask ongoing links to the former chairman.

The sudden financial burden has created serious administrative and accounting problems for insurers. The fees already paid in 2025 have been recorded as expenses in the 2024 accounts. Any additional payment now would further inflate expense ratios and could eventually lead to higher costs being passed on to policyholders.

Brigadier General Md. Shafiq Shami (Retd.), Secretary General of the Bangladesh Insurance Forum (BIF) and CEO of Sena Insurance, stated that companies paid the 2026 renewal fees last year under the prevailing rules. “We believe the demand for the increased fee for 2026 should be reconsidered,” he said. “Renewals should be granted at the old rate this year, and the new rates could be applied from 2027 onwards if necessary.”

SM Nuruzzaman, Executive Member of the Bangladesh Insurance Association (BIA) and CEO of Zenith Islami Life Insurance, echoed the concern. “It is not reasonable to demand extra money in February for fees already paid in November,” he remarked. “This will create major financial difficulties for companies that are already struggling to settle claims on time due to fund shortages. The regulations should be amended again to exclude the 2026 renewal from the new rates.”

Despite repeated attempts, neither Additional Secretary Md. Saeed Kutub of the Financial Institutions Division nor Acting IDRA Chairman Md. Fazlul Haque responded to requests for comment.

The Bangladesh Insurance Association has formally appealed to IDRA to resolve the issue urgently. Until a solution is found, the entire private insurance sector remains in limbo, with the possibility of widespread operational disruptions looming large. The episode has once again highlighted long-standing concerns about regulatory transparency and the influence of private interests in Bangladesh’s insurance industry.