Kathmandu. Bangladesh’s insurance regulator has placed 32 of the licensed insurance companies in the “high risk” category. The regulator’s list comes days after finalising a draft ordinance allowing restructuring, merger and change of ownership, or liquidation of troubled insurance companies.
The Insurance Development and Regulatory Authority has categorised these insurers citing poor governance and poor financial conditions, The Daily Star reported.
At a press conference held at the AUTHORITY headquarters on Tuesday, IDRA Chairman M Aslam Alam announced the classification but did not disclose the names of the companies.
Of the high-risk insurers, 15 are life insurers and the rest are non-life insurers. A total of 78 insurance companies have been licensed in Bangladesh, out of which 32 are life insurance companies and the rest are non-life insurance companies.
Of the companies labeled as “high risk”, 15 are in an “impractical” situation, while the problems faced by the “moderate risk” group are seen as “solvable”.
The regulator has recently finalized the Insurance Resolution Ordinance 2025. This ordinance will give sweeping powers to insurers to declare insurers to be declared to be mutilated.
According to The Daily Star, at a press conference, NEA Chairman Alam admitted that the insurance industry is facing a crisis. He also blamed the regulator for insurance companies falling into crisis and weakening public confidence in the insurance sector.
At the end of 2024, nearly 45 per cent of claims in the life insurance sector and 47 per cent in the non-life sector remain uncertain.
