B Mirror Report: Bangladesh’s non-life insurance sector is facing a severe claim settlement crisis, with more than Tk 3,509 crore in customer claims remaining unpaid, raising concerns over public confidence in the industry.

According to data from the Insurance Development and Regulatory Authority (IDRA), a total of Tk 4,678.83 crore in claims were filed with 46 general insurance companies during 2025. Of this amount, insurers settled only Tk 1,169.50 crore, representing just 25% of total claims, while the remaining 75%, or Tk 3,509.33 crore, remains outstanding.

Industry insiders say the crisis stems from both delays by some insurance companies in settling claims and difficulties in receiving reinsurance payments from the state-owned Sadharan Bima Corporation (SBC). The delays have contributed to a growing trust deficit in the sector and raised concerns about future business prospects.

Several multinational companies are reportedly shifting their insurance coverage from local

Data show that Sadharan Bima Corporation holds the largest volume of outstanding claims. Against total claims of Tk 2,486.46 crore, the corporation settled only Tk 299.83 crore, leaving Tk 2,186.63 crore unpaid.

Among private insurers, Green Delta Insurance reported claims of Tk 411.02 crore, of which only Tk 81.45 crore has been settled, leaving Tk 329.57 crore outstanding.

Other major insurers with significant unpaid claims include Reliance Insurance, which has outstanding claims of Tk 140.69 crore, and Pragati Insurance, with Tk 130.74 crore yet to be settled.

Four Insurers Under Particular Scrutiny

The situation is especially concerning at four insurers where more than 90% of claims remain unpaid.

• Purabi General Insurance has settled only 4.05% of claims.
• Peoples Insurance has an unpaid claim ratio of 93.53%.
• Northern Islami Insurance has left 93.31% of claims unsettled.
• Bangladesh Co-operative Insurance has an outstanding claim ratio of 92.06%.

Several other insurers, including Republic, Standard, Islami Insurance Bangladesh, Desh General, Agrani, Global, and Meghna Insurance, have also recorded claim settlement rates below 25%.

Not all insurers are facing difficulties. Eastland Insurance settled 98.94% of claims filed during the period. Janata Insurance, Islami Commercial Insurance, and Sonar Bangla Insurance each settled more than 90% of claims.

Union, Federal, Prime Islami, Bangladesh General, and United Insurance also achieved claim settlement rates above 80%.

A chief executive officer of a general insurance company, speaking on condition of anonymity, described the overall settlement rate of 25% as alarming.

“In a healthy insurance market, claim settlement rates should exceed 80%. Financial weakness among some insurers and delays in receiving reinsurance funds have created the current crisis,” the executive said.

Ahmed Saifuddin, CEO of Bangladesh General Insurance, said that a 75% backlog in claims is unacceptable and noted that delays in reinsurance payments have created cash flow challenges for insurers.

However, Md. Abdul Matin, Deputy General Manager of Sadharan Bima Corporation, rejected allegations that SBC is delaying payments. He said the corporation settles claims promptly when all required documents are submitted and that outstanding cases are generally linked to incomplete documentation.

The growing backlog has intensified concerns over the financial health of the insurance sector and its ability to maintain customer confidence in the years ahead.