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Finance Minister Amir Khosru Mahmud Chowdhury
Finance Minister Amir Khosru Mahmud Chowdhury stated that irregularities, disorder, and corruption have taken deep root in Bangladesh's insurance sector, underscoring that companies must settle outstanding policyholder claims within fixed deadlines even if it requires liquidating corporate assets.
Speaking to reporters on Monday following an inspection of the Insurance Development and Regulatory Authority (IDRA) headquarters, the minister highlighted that nearly 57 percent of insurance claims nationwide remain unsettled—a scenario he described as completely unacceptable. IDRA Chairman Mir Nadia Nivin and Financial Institutions Division Secretary Nazma Mobarek were present during the briefing.
"People invest their hard-earned money in insurance seeking future financial security. How can they be deprived of those funds?" Chowdhury remarked, warning that defaulting insurers face regulatory enforcement. He noted that while several companies purchased land and physical assets instead of clearing dues, they must now liquidate those holdings if necessary to satisfy policyholder obligations.
The finance minister announced plans to introduce automated operations, risk-based supervision, and legislative reforms, including a formal resolution framework set to be placed before parliament. Addressing widespread malpractice involving dual IT servers—where firms maintain genuine accounts on one server and manipulated transactions on another—Chowdhury declared that dual servers will be banned, with punitive action awaiting non-compliant firms during subsequent audits.
He highlighted that the solvency of seven to eight insurance providers is exceptionally alarming and gave them a strict timeline to address liquidity shortfalls. To strengthen regulatory enforcement undermined by prolonged court stays, the government will restructure the Insurance Act and reduce IDRA's reliance on deputed bureaucrats by building an in-house cadre of trained professionals over the next three to five years.
https://thedailyexpress.news/news/business/1f1b0620-ebb1-6020-a152-10dd96634218