IDRA probes alleged commission payments by 9 non-life insurers

The Insurance Development and Regulatory Authority (IDRA) has launched inspections at nine insurance companies to investigate allegations that commissions continued to be paid through various channels despite the suspension of individual agency operations in the non-life insurance sector.

According to IDRA, three separate inspection committees have been formed to verify the allegations and assess compliance with regulatory directives. The authority disclosed the development on Tuesday.

The move follows the suspension of individual agency operations by non-life insurance companies effective January 1, 2026. The measure was implemented following a request from the Bangladesh Insurance Association (BIA) and with the consent of non-life insurers.

However, allegations have emerged that some insurers continued to offer commissions in different forms�"including salaries, allowances and “no-claim bonuses”�"to attract business even after the suspension took effect.

Industry insiders argue that such practices are creating unhealthy competition in the insurance market and undermining the implementation of regulatory directives. They say active intervention by the regulator is necessary to maintain market discipline and ensure a level playing field.

In response, IDRA issued a letter on June 4 directing the formation of three separate inspection teams to conduct on-site reviews of the concerned companies.

The inspection programme covers nine insurers: Prabhati Insurance Limited, Paramount Insurance Company Limited, Bangladesh National Insurance Company Limited, Crystal Insurance Company Limited, Asia Pacific General Insurance Company Limited, Union Insurance Company Limited, Global Insurance Limited, Karnaphuli Insurance Company Limited and Prime Islamic Insurance Limited.