STAR BUSINESS REPORT

Bangladesh’s insurance regulator is considering a one-time bailout package to help insurance companies clear around Tk 7,000 crore in outstanding claims, a move aimed at restoring public confidence in the sector.

Mir Nadia Nivin, chairman of the Insurance Development and Regulatory Authority (Idra), made the remarks yesterday at a seminar held at Hotel 71 in the capital. The event was organised by the Insurance Reporters’ Forum (IRF).

“Some companies are now selling their assets. Once these sales are completed, they will be able to settle their outstanding claims. We will sit with each company to find practical ways to solve these problems,” she said.

Nadia added that some insurers have funds tied up in banks, and Idra will work with the Bangladesh Bank to explore ways to release those resources. Companies may also sell investments in treasury bonds to raise liquidity for claim payments.

“If a funding gap still remains after using these options, we may consider seeking a one-time bailout package,” she said.

NO BAILOUT UNLESS ALL OTHER OPTIONS ARE EXHAUSTED

Nadia said outstanding claims are not limited to weak companies alone. Some financially strong insurers are expected to settle dues independently, while others have moderate capacity, and some are severely distressed.

However, she stressed that the sector must first demonstrate that it has fully explored all possible solutions before seeking government support.

“As a sector, we need to do our homework and prove that we have explored every possible way to settle these claims. Only then can we justify a one-time bailout package to clean up the sector and give it a fresh start,” she said.

She also warned that the industry must prevent a repeat of the current crisis through stronger internal reforms.

“At the regulatory level, we must strengthen our rules so that companies do not end up in this situation again. Unless we can give credible assurances on both fronts, it will be very difficult to seek a bailout package from the government,” she added.