Newly appointed Chairman of the Insurance Development and Regulatory Authority (IDRA), Mir Nadia Nivin, has said the regulator is considering the possibility of a special one-time bailout package for the country’s insurance industry to help address longstanding challenges and restore public confidence in the sector.

The assurance came during a meeting with managing directors (MDs) and chief executive officers (CEOs) of life insurance companies held in the capital on Thursday.

The meeting focused on several key issues, including insurance claim settlements, rebuilding public trust, digital transformation, development of new insurance products, risk-based supervision, and regulatory reforms.

Representatives of life insurance companies noted that prolonged delays and complications in claim settlements by a number of insurers have damaged public confidence in the entire insurance sector. They expressed concern over the inability of some financially distressed companies to meet claim obligations.

In response, the industry leaders proposed the introduction of a special support or bailout package for the insurance sector, similar to measures adopted in the banking industry. Addressing the proposal, IDRA Chairman Mir Nadia Nivin said the regulator would consider the feasibility of providing a one-time support package. However, she emphasized that any such assistance would require firm commitments from the industry to prevent the recurrence of similar crises in the future.

She identified restoring public confidence as the sector’s most pressing challenge, stressing the importance of timely claim settlements, stronger corporate governance, and greater accountability among company management and boards of directors.

The chairman also highlighted the need for digital transformation in the insurance industry. She announced plans to introduce a real-time data-based supervisory system to enhance regulatory oversight. According to her, secure and modern information management systems will enable the regulator to make faster and more effective decisions.

Discussions at the meeting also covered reforms to commission structures aimed at reducing policy lapse rates, strengthening actuarial capacity, improving risk management practices, and introducing innovative insurance products, including Takaful insurance.

Mir Nadia Nivin further said that IDRA is moving away from the traditional compliance-based regulatory framework and is preparing to implement a Risk-Based Supervision (RBS) model. The new system will rely on real-time data, risk analysis, and assessment to ensure more effective and modern oversight of the insurance industry.

Concluding the meeting, she underscored the need for a constructive and collaborative relationship between the regulator and industry stakeholders to ensure sustainable growth of the insurance sector. As part of this initiative, she announced plans to hold separate meetings with each life insurance company in the coming weeks to discuss their challenges, opportunities, and future prospects in greater detail.

The meeting was attended by IDRA members as well as managing directors and chief executive officers of various life insurance companies operating in Bangladesh.