IDRA issues new regulation on insurers’ adviser appointments

Staff Correspondent: Bangladesh’s insurance regulator has issued a new regulation to make the appointment of advisers by insurance companies more actual, transparent and tightly controlled, a move widely seen as strengthening governance standards in a sector where advisers can influence strategic, investment and compliance decisions.

The Insurance Development and Regulatory Authority (IDRA) published the notification in a special supplementary issue of the Bangladesh Gazette on Wednesday. The regulation- issued on January 7 and effective immediately- is titled ‘Insurer’s Adviser Appointment (Qualifications and Experience) Regulations, 2026.’ It was framed with government approval under the power provided by the Insurance Act, 2010.

Under the fresh rules, an insurer may appoint an adviser only with prior approval from IDRA and only if the proposed candidate meets defined qualification and experience standards. The regulation sets several eligibility direction, including: at least three years’ experience as a chief executive officer; or insurance-related work experience supported by recognised global professional certifications (with examples such as actuarial credentials and chartered insurance qualifications); or Bangladesh Insurance Academy (BIA) certification with at least six years’ insurance-sector experience. It also recognises candidates with professional credentials in accounting, finance, costing or secretarial practice- like ICAB, ACCA, CFA, CPA, ICMAB and ICSB- paired with at least six years’ experience, including insurance-specific exposure in some cases.

The regulation further extends eligibility for certain senior public officials and academics. Retired government officials at the level of deputy secretary or above with relevant insurance experience may qualify subject to specific conditions. Professors with experience in banking and insurance or risk management, alongside long-term professional exposure, are also included. Besides, the rule allows candidates with a minimum bachelor’s degree and at least six years in an insurer’s senior management- a category that explicitly covers posts such as CEO/MD, CFO, company secretary, chief investment officer, chief risk officer and heads of internal audit and compliance.

To address integrity and conflict-of-interest concerns, IDRA has set out detailed disqualification. A person will be not eligible if the candidate or a family member is an entrepreneur shareholder, director or chief executive of the concerned insurer; if the candidate is not a Bangladeshi citizen or permanent resident; or if the candidate has been declared bankrupt, identified as a loan defaulter, removed for corruption or abuse of power, or is serving as a director of a bank, insurer or finance company. Those convicted of offences involving moral turpitude, or charge-sheeted in cases involving money laundering, fraud or corruption- without discharge- are also barred.

Insurers must submit a comprehensive approval file to IDRA, including appointment justification, defined duties, draft contract, CV, identification documents, attested certificates, board resolution and an affidavit confirming no disqualifications. Reappointment proposals must be filed 45 days before contract expiry, with IDRA required to decide within 45 days of receipt.

The regulation limits contracts at three years, allows advisers to serve up to age 76 with IDRA approval and bars adviser benefits from exceeding the chief executive’s pay- rules designed to prevent informal power hubs and reinforce board answerability.