Policyholders of Troubled Insurers to Receive Outstanding Claims Next Week: IDRA

Staff Correspondent: Customers of seven to eight financially troubled insurance companies will begin receiving payments for outstanding claims from next week, Bangladesh’s insurance regulator has said.

Mir Nadia Nivin, chairman of the Insurance Development and Regulatory Authority (IDRA), said money recovered through asset liquidation, land sales and the encashment of bonds and fixed deposits had been placed in bank accounts under the regulator’s supervision.

The funds will be used to settle outstanding claims owed to policyholders.

Mir Nadia Nivin made the announcement on Friday at the opening of a two-day workshop on financial reporting and data analysis organised by the Insurance Reporters Forum (IRF) at the Bangladesh Academy for Rural Development (BARD) in Cumilla.

She said protecting policyholders was a key responsibility of the regulator and that the initiative was aimed at customers of insurers that had struggled to settle claims for a prolonged period.

The IDRA chairman also raised concerns about the accuracy of financial information submitted by insurance companies.

She said some insurers were using multiple or “dual” servers to conceal information, leaving the regulator without a complete picture of their premium income and overall financial position.

Companies have been given six weeks to remove hidden or additional servers and consolidate their data into a single system.

Those that fail to comply will face legal action, Mir Nadia Nivin said.

IDRA also plans to introduce a fully risk-based supervision system across the insurance sector by December.

The system is intended to allow the regulator to monitor companies according to the nature and level of their risks and identify financial weaknesses and irregularities earlier.

Mir Nadia Nivin said IDRA also planned to conduct special audits with Bangladesh Bank, the National Board of Revenue (NBR) and the Bangladesh Securities and Exchange Commission (BSEC) to identify financial irregularities at insurance companies.

Bangladesh Bank would assist in tracing bank accounts and financial transactions, she said.

Mir Nadia Nivin said discussions had already taken place with the central bank governor and a framework for cooperation had been agreed.

She also criticised delays in the existing audit process, saying reports can take up to a year and a half to reach the regulator.

Such delays make timely regulatory action difficult, she said, stressing the need for faster access to updated financial information.

Mir Nadia Nivin warned that insurers that repeatedly failed to follow regulatory instructions could find it difficult to continue operating.

The regulator would take a firm approach to corruption, irregularities and non-compliance as part of efforts to strengthen confidence in the insurance industry, she added.

IRF President Golam Mawla chaired the event. National Life Insurance Chief Executive Officer Md Kazim Uddin and Chief Financial Officer Prabir Chandra Das attended as special guests.

Kazim Uddin said delays in settling claims were a major reason for public distrust of the insurance industry.

Financial problems at a small number of insurers had affected confidence in the wider sector, he said.

He supported selling company assets where necessary to meet policyholders’ claims, saying claim settlement should remain a priority for insurers.

According to Kazim Uddin, National Life Insurance paid Tk1,137 crore in claims in 2025, including Tk1,110 crore in maturity claims and survival benefits.

He said some payments were transferred to customers’ bank accounts on the due date, while in other cases company staff delivered cheques directly to customers.

Kazim Uddin also called for greater cooperation between the insurance industry and the media, saying constructive reporting could improve accountability and help the public understand changes in the sector.

Public confidence would improve if insurers settled valid claims regularly and on time, he said.