Bangladesh's insurance sector has been operating without full-time leadership at two of its most important institutions for more than two months, fuelling concerns over policy delays and slower administrative activities.
Officials and industry insiders say the prolonged vacancies at the Insurance Development and Regulatory Authority (IDRA) and state-owned insurer and sole reinsurer Sadharan Bima Corporation (SBC) are beginning to affect routine operations and key decision-making.
While acting officials are overseeing day-to-day functions, insiders believe the absence of permanent chairmen has created uncertainty at a time when the sector requires stronger regulatory direction and faster policy responses.
The posts have remained vacant since March 02 following the resignations of IDRA Chairman Dr M Aslam Alam and SBC Chairman Jainul Bari.
Officials familiar with the matter told the FE on Thursday that the prolonged vacancy has created uncertainty within the two organisations, while important decisions requiring approval at the highest level have faced delays.
When contacted, officials at the Financial Institutions Division (FID) under the Ministry of Finance said they had yet to receive final names for the appointments, although several individuals had reportedly been lobbying for the positions.
In the meantime, the government has moved to revise the age restrictions for appointments to the post of IDRA chairman, indicating that senior candidates are being considered.
A senior FID official said parliament had already approved the withdrawal of age restrictions linked to such appointments.
"The gazette notification will be issued after the final selection process is completed and the names are approved by the authorities concerned," the official said.
Currently, Fazlul Hoque is serving as chairman (in charge) of the regulator, while Md Zakir Hossain Chowdhury is carrying out responsibilities at SBC.
However, officials within the two organisations said acting leadership arrangements were not sufficient for making major policy decisions.
Insiders at both institutions said the absence of permanent leadership had started affecting routine activities and delaying administrative processes.
A senior official at IDRA said many files requiring approval were progressing slowly.
"Several matters that require the chairman's intervention have remained pending and decision-making has become slower," the official said.
At SBC, a senior official said the acting chairman was mainly handling routine activities.
He further said SBC must settle many claims for private non-life insurers, which are mandated to reinsure a portion of their business with the corporation.
"We need a regular chairman because major decisions require long-term leadership and policy direction," the official said.
Meanwhile, Dr Moklesur Rahman, who was appointed chairman of Jiban Bima Corporation in October 2024, has been continuing to serve the state-owned life insurance company.
jasimharoon@yahoo.com
