Bangladesh's insurance regulator Insurance Development and Regulatory Authority (IDRA) has imposed a ban on agent commissions in the non-life insurance sector. This move implies that there will be no agents serving the non-life branch.
A press release issued by IDRA on 7 January 2026 said none of the 45 non-life insurance companies in the country will be allowed to deploy agents for premium collection. Also, IDRA said it had scrapped agent licences to address problems facing non-life insurers. The companies are no longer permitted to pay any commission, and any deviation from the directive would invite punitive action.
According to the IDRA annual report for 2023-24, the non-life sector accounted for 59.80% of total global insurance premiums in 2023, while the life sector collected the remaining 40.20%. In Bangladesh, however, the situation is reversed. In 2023, the life insurance sector collected premiums of BDT123bn ($1.1bn), while the non-life sector collected only BDT60bn.
According to industry sources quoted in the media, IDRA's decision to abolish agent commissions in the non-life insurance sector marks one of the most significant regulatory shifts in recent years. The move aims to correct long-standing structural weaknesses in the market, where excessive commission-driven business has frequently undermined underwriting discipline and policyholder protection
Also, IDRA found that insurers often paid uncontrolled commissions to secure a share of the relatively small market. These unchecked discounting and commission payments have also been identified as a key reason behind the country's low claim settlement ratio.
Bangladesh's non-life insurance companies settled only 35.54% of total claims in 2023. Industry insiders say commission-led growth has been a major contributor to distorted pricing, weak risk assessment and delayed claim settlements in the sector. In many cases, insurers prioritised expanding premium volumes through high commissions rather than maintaining underwriting quality.