IDRA suspends individual agent licences in non-life sector

Press release: Bangladesh’s insurance regulator, the Insurance Development and Regulatory Authority (IDRA), has taken a decision in the non-life insurance sector by suspending the licences of all individual agents and banning non-life insurance business through individual agents from January 1, 2026.

In a press release issued on Wednesday (January 7) IDRA said non-life insurers will no longer be allowed to recruit individual agents, collect business through them, or provide any economic benefit in the name of commission. The regulator warned that any breach of the directive will be treated as a violation of Section 58(1) of the Insurance Act, 2010 and will be punishable under existing law.

IDRA said the move aims to address longstanding irregularities, commission-driven inconsistencies and transparency gaps that have undermined governance and discipline in the non-life market. The authorities concerned believe the decision will strengthen financial order, improve answerability and better safeguard policyholders’ interest.

Industry observers expect the ban to trigger a major restructuring of non-life insurance distribution, forcing companies to shift toward alternative, more regulated business models ahead of the 2026 deadline.