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The Finance and Planning Advisor to the Prime Minister, Dr. Rashed Al Mahmud Titumir, has blamed regulatory weaknesses for the lingering public trust deficit plaguing the country's insurance sector. Speaking as the chief guest at a seminar titled "Challenges, Prospects, and Way Forward in the Insurance Sector" organized by the Insurance Reporters Forum (IRF) at a city hotel on Saturday, the advisor noted that the regulatory body had long failed to safeguard equity and consumer rights, culminating in a severe lack of accountability across the industry.

The high-profile event drew top regulatory officials, industry leaders, and academics who debated structural flaws, low penetration rates, and urgent policy reforms required to rescue the sector.

Dr. Rashed Al Mahmud Titumir underscored the urgency of establishing a robust, modern regulatory framework to overcome the ongoing impasse. He lamented that despite Bangladesh being a highly climate-vulnerable country, the expansion of agricultural insurance remains abysmally limited, largely because insurance companies do not view it as a commercially viable venture. The advisor emphasized that ignoring the risk protection of farmers is no longer an option under current economic realities. He additionally called for taking health insurance, which remains largely restricted to the affluent and certain corporate groups, to the doorsteps of ordinary citizens through aggressive product diversification.

Highlighting the role of technology, Dr. Titumir explained that transitioning to completely digital operations would enhance transparency, minimize operational leakages, and significantly reduce administrative overheads for corporations. Furthermore, while advocating for stronger governance, he cautioned against over-regulation, suggesting instead a balanced, market-based oversight model that holds third-party market regulators—such as auditors, surveyors, and credit rating agencies—highly active and strictly accountable.

Special Guest Mir Nadia Nivin, newly appointed Chairperson of the Insurance Development and Regulatory Authority (IDRA), announced a comprehensive three-pillar reform framework aimed at revitalizing the sector. The immediate priority under this plan is resolving the massive backlog of unsettled insurance claims, which currently hovers around BDT 7,000 crore across both life and non-life sectors. The IDRA chief detailed that the first pillar focuses entirely on restoring policyholder trust, followed by establishing insurance as a credible long-term investment class, and ultimately enhancing institutional capacity to ensure sustainable industrial growth and boost capital market depth.

The authority will facilitate asset liquidation, fund recovery from stuck avenues, and alternative mechanisms to clear the dues. Strikingly, the chairperson revealed that if substantial liabilities persist despite all internal efforts, IDRA might propose a one-time fiscal bailout package from the government.

However, she emphasized that this intervention would be strictly conditional, requiring both the regulatory body and insurance companies to complete their prerequisite homework, reform risk management, and institutionalize flawless corporate governance to guarantee that a similar liquidity crisis never recurs. She added that new regulatory guidelines are also in the pipeline for microinsurance, climate-risk insulation, and Takaful (Islamic insurance) frameworks.

Bangladesh Insurance Association (BIA) President Sayeed Ahmed, MP, demanded that insurance commissions be insulated entirely from business malpractices and corporate anomalies.

In contrast, Bangladesh Insurance Forum (BIF) President BM Yousuf Ali pointed out that while media scrutiny often highlights delayed payments, several efficient companies settle valid claims within 24 hours, a positive trend that deserves public visibility alongside criticisms.

Dhaka University's Banking and Insurance Department Chairman, Prof Dr. Md. Shahidul Islam Zahid, noted that despite the expanding economy, the insurance sector remains neglected with dangerously low penetration rates. He identified short-term profit motives, ethical hazards, and the lack of long-term sustainable planning as core bottlenecks.

Adding to the critique, Nasir Uddin Ahmed Pavel, Vice Chairman of Karnaphuli Insurance, criticized past regulatory oversight, stating that the mass issuance of 13 insurance licenses simultaneously in 2013.

Zenith Islami Life Insurance Managing Director SM Nuruzzaman echoed these concerns, stating that life insurance faces deeper structural distress than non-life sectors, suggesting that easing bank loan access and streamlining asset management.

Presenting the keynote paper, Capital Market Journalists' Forum (CMJF) President Monir Hossain pointed out a stark structural disparity, noting that while Bangladesh ranks 35th globally in terms of GDP size, its insurance sector ranks an unrespectable 60th.

To harness the sector's latent potential, the keynote paper recommended the immediate implementation of the National Insurance Policy, expanding risk-based supervision, introducing service-quality-based corporate categorization, and boosting IDRA's manpower.

The paper concluded that media criticism should be embraced constructively, urging a collaborative triad between the press, regulators, and insurers to reconstruct public faith.