Only 2 out of 6 troubled life insurers share revival plans

Only two out of six life insurance companies have complied with directives of the Insurance Development and Regulatory Authority (Idra) by submitting plans to address prolonged failures in settling claims, as policyholders continue to suffer due to corruption and irregularities.

The companies facing regulatory scrutiny are Baira Life Insurance Company Limited, Fareast Islami Life Insurance Company Limited, Sunlife Insurance Company Limited, Sunflower Life Insurance Company Limited, Padma Islami Life Insurance Limited, and Golden Life Insurance Limited.

Among them, only Fareast and Sunflower have complied. The deadline passed over two weeks ago.

Golden has sought two months, and a meeting is scheduled to be held today with Idra, Saifunnahar Sumi, consultant for media and communication of the regulator, told The Daily Star yesterday.

Letters have been sent to Sunlife and Padma reminding them of the directive, she said.

The plans were sought by the Idra through letters sent at the end of March this year.

The regulator's move aims to ensure greater accountability and protect consumer rights in the sector.

Data from the Idra showed that the six life insurers need to settle more than 9 lakh policyholders' claims worth Tk 2,887 crore.

The unsettled claims accumulated over five years until the third quarter of 2024 are 98.37 percent of the total claims during this period.

According to the latest Idra data, except for Sunlife, the remaining five companies have a claim settlement ratio of less than 5 percent.

At present, Bangladesh has 36 life insurance companies and 46 non-life insurers.