Bangladesh’s insurance regulator has relaxed chief executive eligibility rules in response to a prolonged leadership shortfall across the sector, while the country’s capital markets supervisor is raising questions over audit opinions at several listed insurers.
According to the Daily Sun’s report, at least 19 life and non-life companies are operating without full-time CEOs, with vacancies in some cases extending beyond two years. Industry sources say the absence of permanent leadership has affected internal control processes, slowed strategic decisions, and complicated policyholder servicing. The Insurance Development and Regulatory Authority (IDRA) has amended its CEO appointment regulations to change the range of experience that qualifies candidates and to allow discretion to waive specific conditions in certain cases. The changes follow earlier enforcement measures that did not fully resolve the leadership issue.
IDRA spokesperson Saifunnahar Sumi said the regulator has been using penalties and legal action against insurers that fail to appoint CEOs within the prescribed timeframe, but also identified constraints in the existing framework. “Previously, only experience within insurance companies was considered eligible for CEO appointments. Now, experience in financial institutions and internationally reputed organisations will also be recognised. After this amendment, companies will no longer be able to cite regulatory rigidity as an excuse for not appointing full-time CEOs,” she told the Daily Sun.
The revised regulations, published in a government gazette on Dec. 22, retain educational requirements introduced under a 2023 amendment but redefine the experience thresholds for CEO candidates. Under the new framework, a CEO candidate must have at least 12 years of experience in the insurance industry. Within that period, the candidate must have either at least one year as a CEO, additional managing director (AMD), or general manager at the state-owned Bangladesh General Insurance Corporation or Life Insurance Corporation, or at least three years as a deputy managing director (DMD).
For DMDs, the rules now require at least one year of experience in an administrative or operational function, excluding head office development departments. According to market observers, the changes are expected to result in CEO candidates having more direct exposure to business operations rather than only developmental or planning roles.
The amendment also permits IDRA to relax certain conditions in specific circumstances. These include insurers in which the government or government-controlled entities hold more than 50% of shares, as well as candidates with at least 10 years of senior management experience at what the rules describe as “internationally reputed” multinational insurance companies. Former Chartered Life Insurance CEO SM Ziaul Haque said the revisions could speed up CEO approvals if applied with a focus on responsibilities rather than titles. “An AMD carries significant operational responsibility. If their experience is properly assessed, even six months in that role should be sufficient for CEO approval,” he said.
The regulatory changes take place against a backdrop of multiple long-standing vacancies. Rupali Life Insurance has been without a CEO since January 2023, while Homeland Life, Jamuna Life, Swadesh Islami Life, and NRB Islami Life have also been operating without permanent CEOs since 2023. During 2024 and early 2025, Aastha Life, Bayra Life, Sonali Life, Golden Life, Continental Insurance, Akij Takaful Life, Mercantile Islami Insurance, Agrani Insurance, and Diamond Life joined the group of firms without full-time CEOs. Popular Life Insurance is being led by an acting CEO amid ongoing court proceedings.
The sector currently comprises 82 insurers, including 36 life and 46 non-life companies. IDRA has used financial penalties in response to prolonged vacancies and other regulatory breaches. Continental Insurance was fined Tk500,000 in January 2025 for keeping its CEO position vacant for more than six months, and Rupali Life has accumulated Tk1 million in fines. Six other insurers have been penalised a combined Tk3.7 million for issues such as incorrect agent data, misclassified claims, and tariff-related violations.
In a related move affecting governance arrangements, IDRA earlier banned the use of the title “Chief Executive Officer (Current Charge).” Under its directive, only an additional managing director may perform CEO duties on an interim basis, with the title “Chief Executive Officer (Acting).” The regulator has also restricted formal correspondence with IDRA to confirmed or acting CEOs. Sumi said the updated rules were drafted in response to the sector-wide leadership impasse. “With the revised regulations now in place, we expect insurers to move quickly toward appointing full-time CEOs and restoring proper governance,” she said.
The leadership and governance concerns are emerging alongside regulatory scrutiny of financial reporting. The Bangladesh Securities and Exchange Commission (BSEC) has raised concerns about audit opinions on the 2024 financial statements of 27 listed insurers. Following a review of the latest audited accounts, BSEC has asked IDRA to examine the situation and consider supervisory responses under existing insurance and securities legislation. The commission has indicated that the audit outcomes could affect investor confidence, policyholder protection and disclosure practices.
Citing a report by The Business Standard, BSEC noted that auditors of the affected insurers issued various forms of non-standard opinions, including adverse and qualified opinions, Emphasis of Matter paragraphs, references to going concern risks, and conclusions pointing to material uncertainty in the financial statements. The commission has said such opinions are generally interpreted by regulators and investors as indicators of elevated risk in financial reporting, governance, and risk management, rather than as routine findings.
In a letter sent by its Corporate Reporting Department to the IDRA chair, BSEC drew particular attention to going concern and material uncertainty issues. The letter said these observations directly address the insurers’ ability to continue operating and meet their obligations to policyholders and other creditors. BSEC stated that “audit observations related to going concern risks and material uncertainty are of particular concern, as they directly question the companies’ ability to continue operations and meet policyholder obligations.”
