Bangladesh’s insurance sector is facing a deepening claims settlement crisis, with unpaid claims reaching Tk 77.78 billion (Tk 7,778 crore) at the end of March 2026, according to the Insurance Development and Regulatory Authority (IDRA).

An analysis of IDRA’s unaudited claims report for the January-March quarter shows that Far East Islami Life Insurance alone accounts for Tk 33.10 billion (Tk 3,310.43 crore) in outstanding claims, representing about 43% of the sector’s total unpaid claims.

Industry experts said persistent financial weaknesses at several insurers, poor corporate governance and inadequate regulatory oversight have significantly eroded public confidence in the insurance industry.

According to IDRA, the country’s 36 life insurance companies received claims worth Tk 68.13 billion (Tk 6,812.67 crore) by the end of March. Of that amount, they settled Tk 24.03 billion (Tk 2,402.55 crore), leaving outstanding claims of Tk 44.10 billion (Tk 4,410.12 crore).

The 46 general insurance companies had unpaid claims amounting to Tk 33.68 billion (Tk 3,368 crore), bringing the combined outstanding claims of the life and non-life insurance sectors to Tk 77.78 billion.

Far East Islami Life Insurance recorded the highest unpaid claims. The company received claims worth Tk 33.40 billion (Tk 3,339.78 crore) but paid only Tk 293.5 million (Tk 29.35 crore), leaving Tk 33.10 billion unsettled.

Among other life insurers, Sunflower Life Insurance had outstanding claims of Tk 2.08 billion, Progressive Life Tk 1.59 billion, Jiban Bima Corporation Tk 699.2 million, MetLife Bangladesh Tk 609.9 million, Delta Life Tk 563.9 million, Golden Life Tk 539.3 million, Sunlife Tk 367.3 million and Homeland Life Tk 354.9 million.

In the general insurance segment, the state-owned Sadharan Bima Corporation accounted for the largest share of unpaid claims at Tk 19.97 billion. Green Delta Insurance had outstanding claims of Tk 3.14 billion, Pragati Insurance Tk 1.75 billion and Reliance Insurance Tk 1.46 billion.

Economist Prof Abu Ahmed said IDRA must play a stronger and more effective regulatory role to restore confidence in the sector. Dhaka University Banking and Insurance Department Chairman Prof Shahidul Islam Zahid said companies that consistently fail to settle claims should face strict regulatory action.

IDRA Chairman Mir Nadia Nivin said clearing outstanding claims is the regulator’s top priority. Measures are underway to improve liquidity by monetising assets held by financially weak insurers, tightening controls on commission practices and strengthening risk-based supervision. The regulator is also working with Bangladesh Bank to address deposits stuck in troubled banks.

Industry insiders said that beyond introducing new regulations, the biggest challenge for IDRA is ensuring visible enforcement against insurers with chronic payment failures and securing timely settlement of policyholders’ claims.