BM Desk : The Insurance Development and Regulatory Authority (IDRA) has taken major initiatives to address the acute shortage of actuaries in Bangladesh’s insurance sector, aiming to build a skilled workforce to ensure the industry’s sustainable growth.

To strengthen actuarial capacity and governance, IDRA plans to establish three specialized bodies — an Actuarial Institute, an Actuarial Board of Standard Setting, and an Actuarial Council. The authority has already drafted the “Actuarial Ordinance 2025”, which is awaiting approval from the Financial Institutions Division (FID) under the Ministry of Finance. Once approved, these bodies will begin operations to enhance professional standards and promote actuarial development in the country.

IDRA Chairman Dr M Aslam Alam shared the details on Tuesday (29 October) while addressing a seminar titled “Youth Employment in the Insurance Industry: Development and Prospects of the Actuarial Profession” held in Dhaka.

Dr Alam emphasized that sustainable progress in the insurance sector is impossible without actuaries. “This profession is not only vital for the insurance industry but also provides a strong foundation for risk management across the entire financial sector,” he said.

Actuaries use mathematical, statistical, and economic models to evaluate financial risks, making them essential in designing insurance products, determining premium rates, and assessing claims based on scientific risk analysis. In many developed countries, actuarial science is regarded as one of the most prestigious and well-paid professions.

Currently, Bangladesh faces a severe shortage of actuaries, with only four to five qualified professionals in total — and just two of them residing in the country.

In his keynote presentation, Dr Mohammad Sohrab Uddin, an actuary, stressed that the insurance industry cannot function effectively without actuarial expertise. “At present, companies develop products based on assumptions rather than precise risk analysis,” he said. He added that earlier efforts to build actuarial capacity failed because actuaries were undervalued and lacked incentives, leading many to seek opportunities abroad. Dr Uddin lauded IDRA’s new initiatives and expressed optimism that, with active cooperation from insurance companies, Bangladesh could substantially expand its actuarial workforce in the coming years.

Afrin Haque, a young actuary based in Bangladesh, highlighted the need to promote awareness of actuarial science among students at school and college levels to attract future talent.

Under the Insurance Act 2010, life insurance companies are required to appoint actuaries, while general (non-life) insurers are not. Dr Uddin suggested that non-life insurance companies should also engage actuaries to strengthen risk management and enhance operational efficiency.

The seminar was attended by Bangladesh Insurance Association President Saeed Ahmed, Md Imam Shahin of Asia Insurance, BM Yusuf Ali, CEO of Popular Life Insurance, and other representatives from the insurance industry.