UNDP, IDRA begin work on national microinsurance framework

The United Nations Development Programme (UNDP), in partnership with the Insurance Development and Regulatory Authority (IDRA), on Thursday launched an initiative to develop a national microinsurance regulatory framework aimed at expanding access to affordable insurance services for low-income, underserved and climate-vulnerable communities.

The initiative was launched through a national inception workshop held in Dhaka.

Speaking as the special guest, IDRA Chairman Mir Nadia Nivin said the insurance sector must explore innovative distribution channels to reach underserved communities and better address their needs.

"By establishing an appropriate microinsurance regulatory framework and promoting effective partnerships, including with microfinance institutions, we can significantly improve insurance penetration and strengthen financial resilience across Bangladesh," she said.

Sarder Asaduzzaman, Assistant Resident Representative of UNDP Bangladesh, described microinsurance as more than just an insurance product, calling it a tool for building resilience.

He said UNDP aims to support Bangladesh in developing a regulatory framework that promotes innovation, strengthens consumer protection, boosts market confidence and expands access to suitable insurance solutions without prescribing a specific market model.

Professor Dr Mohammed Helal Uddin, Executive Vice Chairman of the Microcredit Regulatory Authority (MRA), stressed the need for closer regulatory collaboration between the insurance and microfinance sectors.

"We cannot bypass regulation, but we can certainly simplify it. By bringing together regulators, insurers and microfinance institutions, we can develop a framework that expands insurance access while safeguarding the interests of policyholders," he said.

The workshop brought together representatives from IDRA, MRA, insurance companies, microfinance institutions, financial institutions, InsurTech firms and development partners.

Participants discussed the regulatory, institutional and market reforms needed to expand microinsurance while ensuring consumer protection, market confidence and responsible innovation.

According to the organisers, the recommendations from the workshop will contribute to a regulatory gap analysis, a draft microinsurance regulatory framework and a strategic roadmap for implementation.

The proposed framework is expected to support the development of a practical and inclusive microinsurance market that encourages innovation, protects consumers and strengthens the financial resilience of low-income and climate-vulnerable communities.