IDRA Makes 9 RegTech Modules Mandatory for All Insurers

Staff Correspondent: The Insurance Development and Regulatory Authority (IDRA) has introduced a major digital reform in Bangladesh’s insurance industry by making its RegTech and SupTech platform mandatory for all life and non-life insurers starting from June 30. This fresh directive is aimed at improving transparency, answerability and regulatory supervision in the sector through an entirely digital monitoring system.

Insurance companies will not be allowed to issue any policy without first obtaining a unique authentication number from the IDRA system under the new rules. Without this number, any policy issued will be considered invalid. This requirement is intended to reduce fraud, avert duplicate policies and ensure that every policy is properly registered and tracked in the regulator’s central database.

The new digital platform includes several integrated modules that cover several areas of insurance operations. This includes policy registration, product approval, agent and broker management, customer relationship management, appointment system, share transfer process, web content management, dashboard and authentication number generation and reporting and returns submission. All insurers are required to connect their internal systems using IDRA’s platform through API integration so that data can be transmitted automatically and in real time.

IDRA will be able to monitor insurance activities more closely and in real time with this integration. These include tracking policy issuance, agent performance, business operations and financial reporting. The regulator expects that this will reduce the risk of data manipulation significantly, delayed reporting and hidden inconsistencies in financial records.

According to industry experts, the system will bring several improvements to the sector. It is expected to diminish fraudulent activities, enhance the accuracy of premium and claims reporting, strengthen control over agents and brokers and make complaint management more organised through digital systems. It will also diminish administrative delays by moving many regulatory approvals and processes online, which can lower operational cost for companies.

At the same time, IDRA has directed insurance companies to ensure training for their employees so that they can use the new system effectively. Companies are also needed to report any technical issues quickly and provide regular updates on their application progress to the authority.

However, the move is expected to come with some challenges. Insurance companies may need to upgrade their current software systems and ensure smooth API integration with the regulator's platform. In addition, training for staff, stable internet connectivity, cybersecurity risks and data privacy safeguard will be vital areas that necessitate attention.

Overall, the introduction of the RegTech and SupTech system marks a significant move toward modernising the country’s insurance industry. If executed effectively, it is expected to make stronger regulatory oversight, enhance transparency and build greater trust among customers while moving the sector closer to global digital governance standards.