IDRA Requests FID to Suspend Insurance Act Amendments and Resolution Ordinance Draft Process

Staff Correspondent: The Insurance Development and Regulatory Authority (IDRA) has requested the Financial Institutions Division (FID) of the Ministry of Finance to temporarily suspend the processing of draft amendments to the Insurance Act, 2010, the Insurance Development and Regulatory Authority Act, 2010, and the proposed Insurer Resolution Ordinance.

The request was made to allow further review, refinement and improvement of the draft documents to ensure they are more effective, practical and aligned with the evolving needs of Bangladesh’s insurance sector.

According to the letter sent to FID, IDRA’s Law Department requested that no further administrative or legal steps be taken regarding the draft proposals until the review and revision process is completed. The letter, sent to the Secretary of the Financial Institutions Division on Tuesday (14 July), was signed by Mohammad Badiuzzaman, Director of the Law Department of IDRA.

Earlier, draft amendments to the Insurance Act, 2010, the Insurance Development and Regulatory Authority Act, 2010, and the draft Insurer Resolution Ordinance, 2026 were prepared and submitted to the Financial Institutions Division for further processing.

However, considering the current circumstances and the need to make the proposed legal frameworks more precise, practical and time-relevant, IDRA has identified the need for additional review and necessary modifications to the drafts.

In the letter, IDRA requested the Insurance Wing of the Ministry of Finance to refrain from taking any administrative or legal action on the proposed amendments and ordinance until the revised versions are finalised.

Earlier on 19 January, the Financial Institutions Division arranged two separate review meetings at the IDRA office to discuss the draft amendments to the Insurance Act, 2010 and the proposed Insurer Resolution Ordinance, 2025.

However, the Bangladesh Insurance Association (BIA), the organisation representing insurance company owners, requested that the meetings be held after the national election. Following the request, the discussions were postponed.

The latest move indicates that IDRA intends to conduct a more detailed review of the proposed legal reforms before further step is taken, with the aim of establishing a stronger and more effective regulatory framework for Bangladesh’s insurance sector.