Accountability failures threaten insurance sector’s future

A.K.M Ehsanul Haque, FCII: A renewed national conversation on transparency and institutional responsibility has drawn urgent attention to the country’s insurance sector, which continues to operate under a haze of mismanagement and eroding public confidence. While other economic industries move toward stronger governance, insurance remains burdened by widespread irregularities, fragile oversight and a troubling absence of answerability. The sector’s existing trajectory suggests that reform is no longer a distant ideal but an immediate necessity.

Policyholders who once viewed insurance as a dependable safety net now find themselves navigating delays, uncertainty and a system that often fails to deliver when it matters most. Complaints of stalled claim settlement, bad administrative practices and unresponsive service have become increasingly common. This persistent failure to uphold consumers’ trust has compounded frustration and raised questions regarding the sector’s commitment to its most basic obligation.

At the centre of the crisis stands the Insurance Development and Regulatory Authority (IDRA), the body charged with enforcing discipline and safeguarding public interest. IDRA’s continued reluctance to act decisively against insurers accused of ignoring legal requirements has become a focal point of criticism. Its passivity has allowed a culture of impunity to take root, making an environment where companies often operate without fear of regulatory consequence. For many observers, IDRA’s inaction reflects a deeper institutional weakness that threatens the stability of the entire sector.

The ministry responsible for financial oversight has also faced mounting scrutiny for failing to intervene despite clear warning signs. Without firm leadership and consistent enforcement, structural reform remains elusive and the sector continues to drift deeper into dysfunction.

The insurance industry now stands at a critical juncture. Restoring its credibility will need a strong regulatory stance, transparent governance and a fresh commitment to policyholders. Unless IDRA and industry leaders confront these challenges with urgency, the sector risks further decline at a moment when public trust is already worryingly cracked.