Bangladesh’s insurance regulator has ordered all 36 licensed life insurance companies to submit verified documentation of their managing directors’ and chief executive officers’ educational qualifications, as part of an initiative to build a digital database of senior executive records – a move that arrives as the sector faces acute governance and solvency pressures. The Insurance Development and Regulatory Authority (IDRA) issued the instruction through Director and Deputy Secretary Debprosad Paul, giving insurers three working days to comply, according to the Daily Sun. Companies were required to provide updated CVs, academic certificates and transcripts for all qualifications, and documents confirming IDRA’s prior approval of each CEO’s appointment – submitted through both a designated Google Form and in physical form.
The stated purpose of the directive is to create a centralised digital record of life insurance CEOs’ qualifications and appointment histories. The practical implication is that such a database does not currently exist – meaning the regulator has been approving and overseeing CEO appointments without a consolidated, verified record of whether those executives meet the prescribed eligibility criteria. That gap is material. Under rules IDRA restated as recently as March 2025, no individual may hold the CEO title or sign correspondence with the regulator without prior regulatory approval. The credential sweep now tests whether that foundational requirement has been consistently observed across the sector. IDRA Chairman Mir Nadia Nivin has signalled the regulator intends to make future verification more robust. She said future appointment checks may include verification through universities, international databases, Bangladesh Bank, and background checks through the Credit Information Bureau, according to The Business Standard.
The directive arrives in a market where governance failures are widespread and quantified. As of July 2025, IDRA disclosed that 15 of Bangladesh’s 36 licensed life insurers had been classified as high risk, with only six considered to be in good standing, according to The Business Standard. Of those flagged, 15 were described as being in an “unviable” state. “We have an internal grading system based on specific criteria, on which this classification is based,” said then-IDRA Chairman M. Aslam Alam, as reported by The Daily Star.
The financial consequences for policyholders are direct. According to IDRA data, life insurers failed to settle approximately 34% of claims in 2024, leaving outstanding claims of approximately Tk 4,374 crore by year-end, with the sector’s overall settlement ratio declining from 72.43% in 2023 to 66.03% in 2024, according to The Business Standard. Adeeba Rahman, first vice president of the Bangladesh Insurance Association (BIA), attributed the decline to institutional mismanagement and severe financial stress, saying: “Many companies operate with almost depleted funds. Premium income is often diverted to excessive administrative costs or investments benefiting personal interests, causing serious liquidity shortages.”
The credential issue has compounded across a sector already short of qualified leadership. At least 19 life and non-life insurance companies have been operating without full-time CEOs, a situation that industry insiders say has disrupted internal governance, slowed decision-making, and weakened customer service, according to the Daily Sun. IDRA amended the CEO appointment regulations in December 2025 to widen the eligible candidate pool. The minimum required sector experience was reduced from 15 years to 12 years, and administrative experience – not only marketing experience – is now considered when assessing candidates. The credential sweep now tests whether those already in post met even the prior, stricter threshold, according to The Financial Express. The Bangladesh Insurance Association had yet to submit feedback on the broader insurance law amendment as of October 2025, with industry owners reported to be resistant to the pace of regulatory change, fearing that new amendments would bring the sector under stricter rules and regulations.
The government drafted the Insurer Resolution Ordinance 2025, which would allow IDRA to liquidate insurers, seize assets from individuals found responsible for fund misuse, and impose fines of Tk 1 crore and up to seven years’ imprisonment on responsible directors and officers – though its enactment status could not be confirmed as of publication, according to The Business Standard. Under the proposed framework, IDRA would also gain the power to remove or replace a CEO or any officer of an insurer and to temporarily transfer company ownership to the government.
For brokers placing group life, credit life, or bancassurance business with Bangladeshi life insurers, the credential verification exercise is a concrete due diligence indicator. A regulator retroactively checking whether CEOs hold valid qualifications and proper appointment approvals – while simultaneously running special audits into unviable firms and awaiting legislative tools to enforce accountability – is signalling that the sector’s governance baseline is still being established, not maintained. The outcome of the credential sweep, and whether it produces enforceable consequences, will be a measurable test of IDRA’s institutional reach under its current leadership.
