Bangladesh’s insurance sector is getting a big boost. On June 25, 2025, The Financial Express reported that a final draft law, called the Insurers Resolution Ordinance–2025, now allows the Insurance Development and Regulatory Authority (IDRA) to declare an insurer bankrupt if it cannot pay claims. This news brings hope to thousands of policyholders who have waited too long for payouts. This update is about more than just money. It mixes changes in the Banking & Insurance and Regulatory Policy sectors. IDRA can now take over insurance companies, limit ownership by one family, merge firms, or even liquidate them if claims are not paid. These steps are designed to make the sector safer for everyone. The change follows recent worries. Some insurance companies in Bangladesh, like life insurers, struggled to pay policy claims because of wrongdoings and poor management. As a result of these problems, payments were delayed or not made at all. The draft law aims to solve this problem by giving the regulator direct power, similar to how banks are handled under the Bank Resolution Ordinance. Saifunnahar Sumi, an IDRA spokesperson, said that the main goal is to protect policyholders. Special audits have already revealed trouble in several insurers. When the new law is passed, it will give IDRA clear legal authority to act on those findings. The regulator can now impose fines, merge firms, and ensure money goes directly to policyholders. The news highlights a strong move to improve the banking and regulatory policy sectors. It follows a trend in different industries where regulators get sharper tools. For example, in banking, rules have been tightened so authorities can resolve bad banks quickly. Now, the same kind of tools are coming to insurance. This change also brings a positive signal to the wider financial system. When people know their insurance is safe, they trust the sector more. This trust encourages more people to buy insurance, which supports growth in the economy and gives companies a more stable base to operate from. It can also attract new companies, including those trying innovations, like fintech-insurance hybrids. In short, the new ordinance will help ensure claims are paid on time and that companies are run well. It safeguards policyholders, encourages firm responsibility, and makes the insurance market more reliable. The change is a smart mix of stronger regulatory policy and improved oversight in banking & insurance. This sets a strong example for how to support sectors facing financial trouble.
