IDRA undertakes 54 reform initiatives to strengthen Bangladesh’s insurance sector

Staff Correspondent: In a major move to promote transparency, good governance and sustainable growth in the country’s insurance industry, the Insurance Development and Regulatory Authority (IDRA) has undertaken 54 reform initiatives covering legal, administrative, life and non-life segments of the sector. The reform is designed to strengthen regulatory oversight, ensure operational efficiency and align the country’s insurance ecosystem with global standards.

The initiatives include key measures like amendment to the Insurance Act 2010, revision of management expense limit, introduction of an Enterprise Resource Planning (ERP) system, formulation of realistic insurance plan and establishment of the Bangladesh Actuarial Institute and digital transformation of operational process.

According to IDRA, several reform programmes have already been completed, while others are progressing under four major divisions- Administration, Legal, Life and Non-Life.

Under the Administration Division, 19 strategic reforms are currently underway. Notable among these are the finalisation of IDRA’s organogram and manpower structure, formulation of the National Insurance Policy 2025–2030, enhancement of the actuarial profession in Bangladesh and revision of the Regulatory Sandbox Guidelines 2023. The division is also spearheading the establishment of professional institutions including the Bangladesh Chartered Insurance Institute (BCII), Bangladesh Institute of Insurance Management (BIIM) and Bangladesh Actuarial Institute.

Technology integration remains a major focus area. IDRA is implementing the National Core Insurance Solution (NCIS), a comprehensive ERP system with 14 modules, Regulatory Technology Solutions (11 modules) and Supervisory Technology Solutions (7 modules) to enhance efficiency and oversight. The Unified Messaging Platform (UMP) has been upgraded to the Insurance Information Management System (IIMS), featuring 10 integrated digital services such as SMS and email notifications, e-receipts, e-KYC, policyholder portal, mobile app and business intelligence tools.

Other key administrative initiatives include digitising legacy documents through a document management system, introducing digital entry and exit systems at IDRA headquarters, prohibiting officials from accepting benefits from insurers or stakeholders, restructuring the dispute resolution committee and launching monitoring systems for both InsurTech companies and insurance surveyors.

The Legal Division is implementing 16 reform measures, including amendments to the Insurance Act 2010, IDRA Act 2010 and Insurance Corporation Act 2019, as well as the introduction of fresh regulatory frameworks such as the Insurer’s Resolution Ordinance 2025, Insurance Advisors Regulations 2025 and Surplus Distribution Regulations 2025. It is also revising several existing regulations related to CEO appointments and removals, business registration fees, solvency margins and agent licensing procedures.

The Life Insurance Division is overseeing nine reform initiatives focusing on improving company grading, updating CEO appointment guidelines, forming a pool of qualified chief executives, conducting special audits on 15 life insurers and updating insurance plan information. Efforts are also underway to prepare and update company profiles and expand actuarial services through local professional enlistment.

Meanwhile, the Non-Life Insurance Division is implementing 10 reforms that include ensuring timely payment for audit services, enlisting audit firms for regular inspections, strengthening offsite supervision using the IIMS system, updating company profiles and revising terms of reference (TOR) for compliance verification. Furthermore, it has introduced new checklists for surveyor authorisation, branch office establishment and bancassurance certification.