New IDRA chief vows to overhaul insurance sector

Newly appointed Chairman of the insurance regulator Mir Nadia Nivin has pledged to modernise Bangladesh's insurance sector through stronger governance and the introduction of risk-based supervision aimed at bringing the industry in line with international standards.
Ms Nivin, the first woman to lead the Insurance Development and Regulatory Authority (IDRA), formally assumed office on Thursday after being appointed chairman earlier this week.
Her appointment comes at a time when the insurance sector faces growing challenges relating to governance, claim settlement, financial soundness and public confidence.
Addressing officials and employees at an introductory meeting at the IDRA headquarters, she emphasised the need for a fundamental shift in the country's regulatory approach, saying the industry should gradually move from a traditional compliance-based supervisory model to a risk-based framework, according to a press release.
The IDRA chief said the existing system largely focuses on ensuring compliance with rules and regulations, whereas a risk-based approach would enable the regulator to identify potential vulnerabilities in insurance companies at an early stage and take preventive measures before they threaten policyholders' interests or financial stability.
The new chairman also identified four priority areas for the regulator: strengthening claim settlement capacity, ensuring good governance, safeguarding financial stability and enhancing regulatory effectiveness.
She noted that prompt settlement of insurance claims remains one of the most critical factors in improving public trust in insurance services and expanding coverage across the country.
Delays in claim payments have long been cited as a major reason behind the low penetration of insurance products in Bangladesh compared with regional peers.
Addressing the meeting, Ms Nivin said sustainable development of the insurance sector would require a clear long-term vision and coordinated efforts from regulators, insurers and other stakeholders.
"A clear and long-term vision is essential for the success of an institution and the sustainable development of a sector," she said. The regulator, she said, would work towards establishing a modern and internationally comparable supervisory structure capable of responding to evolving market risks.
The introductory meeting was attended by Financial Institutions Division Secretary Nazma Mobarek as chief guest. She called for the expansion and modernisation of the insurance sector to enable it to play a more meaningful role in the country's financial system and economic development.

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