TBT DESK: The life insurance sector in Bangladesh is facing a severe trust deficit, with 15 of the country's 36 life insurers now classified as "high risk" and deemed unfit for proper operation. The revelation was made by Dr M Aslam Alam, Chairman of the Insurance Development and Regulatory Authority (IDRA), during a press briefing at the IDRA headquarters on Wednesday.
According to Dr Alam, the main cause behind the public's growing disillusionment with the sector is the widespread failure of insurers to settle claims on time. As of December 2023, over 1.3 million unsettled claims from life insurance policyholders remain pending, amounting to Tk 4,414 crore. "This has left the sector in crisis," the IDRA chairman remarked.
In total, the insurance industry has Tk 6,948 crore in unpaid claims, of which Tk 4,414 crore relates to life insurance and Tk 2,534 crore to non-life insurers. IDRA has also flagged 17 non-life insurance firms as high risk.
While Dr Alam did not disclose the names of the troubled life insurers during the press conference, regulatory sources have confirmed that special auditors have been appointed to monitor the following 15 companies:
Sunflower Life, Fareast Islami Life, Sunlife, Padma Islami Life, Progressive Life, Protective Islami Life, Best Life, Homeland Life, Prime Islami Life, Jamuna Life, Diamond Life, Swadesh Life, Golden Life, BAIRA Life, and NRB Islamic Life Insurance.