Uniform media message: Insurance sector reform must start with IDRA

Staff Correspondent: Bangladesh’s leading newspapers and digital platforms have reached a rare and overwhelming consensus on the state of the country’s insurance industry. Following an influential view exchange meeting hosted by Insurance News BD at the Dhaka Reporters Unity, the national conversation has shifted sharply toward one central conclusion: any amendment to the Insurance Act will remain ineffective unless the Insurance Development and Regulatory Authority (IDRA) is first restructured and strengthened.

The discussion brought together senior experts, insurance entrepreneurs and industry stakeholders who examined the reasons behind the sector’s sluggish growth and the challenges surrounding the proposed changes to the Insurance Act. Their reflection, amplified across major media outlets, painted a compelling picture of an industry held back not by legislative shortcoming, but by weak enforcement and limited regulatory capacity.

Existing act holds strong provisions, but enforcement remains fragile

During the dialogue, speakers emphasised that the Insurance Act, enacted more than a decade ago, already includes strong mechanisms for oversight. The act empowers the regulator to conduct audits, carry out investigation, intervene administratively when necessary and enforce penalties against violators. Yet, as many experts pointed out, these provisions have been applied inconsistently or not at all.

This gap between act and execution has resulted in persistent structural failure. Public trust in insurance products remains low, claim settlements often face long delays and corporate governance in many companies continues to fall short of acceptable standards. Participants were unanimous that the core of the crisis lies in the inability of IDRA to exercise its authority effectively and impartially.

Leading print media highlight a regulatory governance crisis

Several of Bangladesh’s highest-circulation newspapers echoed the same findings in their coverage of the event. Prothom Alo noted that the insurance sector remains neglected and weak because the regulator lacks the structure and capacity required to enforce the act. The paper warned that amendments that do not address these institutional weaknesses will struggle to deliver meaningful reform.

Reports published in Manabzamin, Kalbela and Somoyer Alo highlighted the mounting complexity of the proposed amendment, pointing out that their successful execution demands advanced technical expertise and strong monitoring systems. Citing industry sources, they said that IDRA’s existing form does not meet the demands of a modern regulatory environment and therefore must be rebuilt for the amendments to achieve their intended impact.

Jugantor stressed that trust in the insurance industry cannot be restored without stronger regulatory oversight. Its coverage focused on transparency, economic discipline and timely claim settlement as areas needing urgent regulatory attention, reinforcing the view that institutional reform should precede legal reform.

Ajker Patrika cautioned that if IDRA’s performance gap is not addressed, even the well-crafted amendment will remain ineffective. It argued that the consequences of weak enforcement could deepen the sector’s vulnerabilities in the future.

Desh Rupantor took a balanced approach, acknowledging the strength of the existing act but warning against giving the regulator unchecked control over company management. It argued for a stable, transparent and balanced system of enforcement that encourages compliance without destabilising the market.

English-language media underline institutional reform as the priority

The Business Standard (TBS) published an analytical report highlighting the urgent need to evaluate the performance and capability of the regulator before undertaking any legislative changes. The newspaper argued that a modern, transparent and responsible insurance industry depends on strict, fair and consistent enforcement of the existing law. Without a strong regulatory institution, any new amendment risks becoming ineffective on the ground.

Digital news platforms reinforce the same central argument

Bangladesh's online media offered remarkably similar interpretations. Dhaka Post stressed that empowering IDRA to enforce existing acts is more urgent than revising them. Bangla Tribune pointed out that many legal provisions remain unenforced due to the regulator’s limitations and lack of operational efficiency. Jago News emphasised that successful application of any new legal provision requires a regulator that is both technically capable and professionally neutral. Other online portals including Banglanews24, Sarabangla and Rising BD highlighted the importance of answerability, transparency and financial discipline as foundations of sectoral recovery.

Insurance News BD, which organised the view exchange meeting, reaffirmed in its own reporting that the current act already contains robust provisions for oversight and corrective measures. Its coverage highlighted that without professional competence, institutional integrity and a commitment to enforcement, legislative reform alone cannot produce sector-wide improvement.

A national-level consensus emerges: Strengthen IDRA before amending the act

Across the print and digital landscape, media narratives have converged on a single, powerful insight. The most significant barrier to progress in the insurance sector is not the legislation itself, but the institution responsible for applying it. Strengthening IDRA- structurally, operationally and technologically- has therefore become the central recommendation from both experts and journalists.

The lingering problems of the sector, from slow claim settlements to recurrent mismanagement, stem from a regulatory model that lacks the authority, expertise and resources necessary to enforce the law. Media reports emphasized that modernising IDRA into a transparent, credible and service-oriented institution is essential for restoring public trust and guiding the sector toward sustainable growth.

A dialogue that sparked a unified media voice

The policy discussion organised by Insurance News BD has successfully pushed the issue of insurance sector reform to the forefront of national attention. For the first time in many years, almost all major newspapers and digital platforms have expressed a unified viewpoint on a regulatory matter.

The message they delivered is clear and forceful: Bangladesh’s insurance sector cannot advance, no matter how comprehensive the amendments to the Insurance Act may be, unless IDRA is first transformed into a capable, modern and accountable regulator. The future of the industry, they emphasised, depends on the strength and sincerity of the institution tasked with upholding the act.