Restoring public confidence in Bangladesh's insurance industry will require stronger corporate governance, comprehensive digital transformation, effective regulation and far-reaching reforms, speakers at a post-budget seminar said on Saturday.
They observed that weak oversight, poor governance, limited product innovation and inadequate use of technology have long prevented the sector from realising its full potential.
However, they maintained that greater accountability, transparency and modern management practices could enable the industry to play a far more significant role in the country's socio-economic development.
The remarks were made at a seminar titled, "Future Prospects and Challenges of Bangladesh's Insurance Sector in Socio-Economic Development," organised by the Insurance Reporters Forum (IRF) at Hotel 71 in the capital.
Addressing the event as chief guest, Prime Minister's Adviser on Finance and Planning Prof Dr Rashed Al Mahmud Titumir said public confidence in financial regulators, including those overseeing the insurance, banking and capital market sectors, had been eroded by years of ineffective supervision.
"We do not believe in excessive regulation, but we need a strong, accountable and market-based regulatory framework to safeguard policyholders and restore trust," he said.
Insurance Development and Regulatory Authority (IDRA) Chairman Mir Nadia Nivin said rebuilding customer confidence, strengthening institutional capacity and positioning insurance as a long-term investment instrument remained the regulator's foremost priorities.
She disclosed that nearly Tk 7,000 crore in insurance claims remain unsettled. The regulator, she said, would assess the financial health of individual insurers to facilitate claim settlements and, if all other avenues fail, may consider seeking a one-off government support package.
Bangladesh Insurance Association (BIA) President Sayeed Ahmed called for mandatory motor insurance coverage and urged that the insurance regulator be kept free from commercial influence and irregular practices.
Bangladesh Insurance Forum (BIF) President BM Yusuf Ali stressed the need for coordinated efforts among the government, regulators and insurance companies to build a transparent, modern and customer-centric insurance industry.
Prof Dr Md Shahidul Islam Jahid, Chairman of the Department of Banking and Insurance at the University of Dhaka, said insurance penetration in Bangladesh remained low because of weak regulation, poor governance and short-term business strategies.
He called for greater emphasis on agricultural and climate-risk insurance products to address emerging national challenges.
SM Nuruzzaman, Managing Director of Zenith Islami Life Insurance, said the life insurance segment was confronting more severe challenges than the general insurance sector and required urgent reforms to regain public confidence.
Presenting the keynote paper, IRF Senior Member and Jugantor Business Editor Monir Hossain said the industry must embrace modernisation, strengthen governance, expand technology-driven services and become increasingly customer-oriented to support Bangladesh's long-term economic aspirations.
The seminar, chaired by IRF President Golam Mowla, was attended by policymakers, regulators, insurance executives and industry experts, who unanimously agreed that sustainable growth in the sector hinges on restoring trust, ensuring good governance and implementing meaningful reforms.
