Bangladesh's insurance sector requires comprehensive structural reforms, stronger regulations and governance, and measures to bring back public confidence in the industry.
A news report in the Bangladeshi financial daily The Business Standard said these issues were highlighted at a seminar, "Challenges, Prospects and the Way Forward for Bangladesh's Insurance Sector". The sector was organised on 27 June 2026 by the Insurance Reporters Forum of Bangladesh.
The Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir, speaking at the seminar, said many insurance companies lack strong asset management and investment capabilities, with the life insurance segment facing particularly serious challenges.
He said the industry needs to expand agricultural and health insurance, as, despite Bangladesh's vulnerability to natural disasters, the agricultural insurance business remains underdeveloped, while health insurance coverage is largely confined to higher-income groups and salaried employees.
Mr Titumir said the industry should ensure greater use of technology to improve customer services and operational efficiency. “Weak regulatory oversight, poor accountability and declining public trust have become major obstacles to the industry's growth,” he said.
Insurance Development and Regulatory Authority (IDRA)’s Chairman Mir Nadia Nivin also addressed the gathering. He said restoring policyholders' confidence, establishing insurance as a major source of long-term investment and strengthening institutional capacity would be the regulator's three key reform priorities. He said settling around BDT70bn ($568m) in outstanding insurance claims is IDRA's immediate priority.
He said IDRA will work with individual insurance companies to identify financial and operational weaknesses, recover trapped funds, facilitate asset sales where necessary and explore other measures to clear pending claims.
Mr Nivin said the regulator plans to expand microinsurance through microfinance institutions, develop a regulatory framework for Islamic insurance (takaful) and strengthen insurance education to build a skilled workforce.
University of Dhaka Chairman Department of Banking and Insurance Professor Dr Md Shahidul Islam Jahid said weak regulation, poor governance and a short-term profit mentality as the sector's main challenges, while emphasising the need to expand agricultural and climate-risk insurance.