The government is amending the insurance law to enhance the regulatory powers of the Insurance Development and Regulatory Authority (Idra). The proposed changes aim to allow Idra to dissolve and restructure insurer boards, limit family ownership to 10% of shares, and introduce significant fines for non-compliance. Currently, only 57% of insurance claims were settled in 2024, prompting action plans from struggling insurers. The draft law also includes provisions to allow regulators to search insurers' offices and seize documents if necessary. Changes to commissions for life insurance agents are proposed, with first-year commissions reducing from 35% to 25%, while renewal commissions would increase. Additionally, directors would need at least 10 years of experience and be limited to six consecutive years in office. With fines potentially reaching up to Tk 1 crore and prison sentences included for violations, stakeholders like the Bangladesh Insurance Association and legal experts support the amendments but emphasize the need for careful implementation to prevent misuse of power. The draft will be available for public feedback soon. (ICE NEW DELHI)

Fonte notizia: The Daily Star