Six life insurance companies in Bangladesh reported negative life funds in the second quarter of 2026, with Far East Islami Life Insurance facing the largest deficit of Tk 11.2 billion, according to data from the Insurance Development and Regulatory Authority (IDRA).
The other five companies are Padma Islami Life Insurance, whose deficit stood at Tk 3.27 billion, Bayra Life Insurance at Tk 581.7 million, Shanta Life Insurance at Tk 198.5 million, Golden Life Insurance at Tk 15.3 million and Jamuna Life Insurance at Tk 9.4 million.
A life fund is maintained by an insurer to meet future policyholder claims. A negative balance raises concerns about an insurer’s financial strength and its ability to settle claims, although it does not, by itself, establish insolvency.
The sector’s outstanding claims exceeded Tk 44.1 billion at the end of March 2026. Far East Islami Life alone accounted for around Tk 33.1 billion in unpaid claims, representing nearly three-quarters of the industry total.
To accelerate claim settlements, IDRA has taken special initiatives. In the third phase on October 4, the regulator disbursed Tk 263.7 million to 7,641 policyholders of six life insurers. In the first two phases, another 8,417 policyholders received Tk 375.4 million.
Across the three phases, a total of 16,058 policyholders received approximately Tk 639.1 million.
However, the disbursement remains small compared with the sector’s outstanding claims, highlighting the need for greater financial transparency, a thorough assessment of insurers’ assets and liabilities, and clear timelines for settling policyholder claims.
