92% of non-life insurance claim remains unsettled

Staff Correspondent: Bangladesh’s non-life insurance sector is facing a significant challenge as the Insurance Development and Regulatory Authority (IDRA) reveals in its second quarterly report of 2025 that the vast majority of customer claims remain unsettled. Based on data from 46 non-life insurers, the report underlines serious inefficiency in claim processing, financial management and regulatory compliance, raising serious concern about the sector’s ability to deliver on its obligation to policyholders.

During the second quarter of 2025, non-life insurers received claims totaling Tk 3,604.78 crore. Of this, only Tk 301.01 crore worth of claims were settled, leaving Tk 3,305.68 crore, or 91.70 percent of claims, unsettled by the end of the quarter. Fresh claims amounting to Tk 392.56 crore were submitted during the same period, adding to the mounting backlog.

At the start of 2025, or the close of 2024, outstanding claims in the sector stood at Tk 3,055.80 crore. Insurers settled Tk 295.29 crore in the first quarter; while an additional Tk 390.10 crore in fresh claims were lodged, indicating that the overall backlog has been steadily increasing.

The state-owned General Insurance Corporation (Sadharan Bima Corporation) recorded the highest volume of unsettled claims, totaling Tk 2,075.80 crore, representing 96.50 percent of claims raised against the company. Among private insurers, Green Delta Insurance had Tk 270.41 crore in pending claims, accounting for 94.21 percent of claims submitted to the company. Pragati Insurance and Reliance Insurance also reported high proportions of unsettled claims, with Tk 163.59 crore (92.33 percent) and Tk 100.97 crore (92.31 percent), respectively.

Despite the overall high backlog, some insurers demonstrated relative progress. Sadharan Bima Corporation settled the highest value of claims at Tk 75.34 crore during the second quarter. Pioneer Insurance and Union Insurance followed with claim settlements of Tk 27.22 crore and Tk 18.10 crore, respectively. Green Delta Insurance and Bangladesh General Insurance processed claims worth Tk 16.62 crore and Tk 16.38 crore, while Islami Commercial Insurance settled Tk 10.66 crore during the same period.