IDRA moves to sell insurers’ assets to settle claims

The Insurance Development and Regulatory Authority (IDRA) has launched initiatives to rebuild public trust in Bangladesh’s insurance sector and guarantee the settlement of long-pending customer claims.
According to IDRA sources, asset liquidation is already underway for four troubled life insurers: Fareast Islami Life Insurance, Baira Life Insurance, Sunlife Insurance, and Progressive Life Insurance. Industry sources confirm that several properties have already been converted to cash, with customer payouts expected to begin next week under direct IDRA supervision.
Speaking to the Daily Sun, IDRA Media and Communications Consultant Saifunnahar Sumi confirmed the regulatory oversight but noted that the exact amount currently raised for these payouts cannot yet be disclosed. 
Following IDRA’s directives, several other struggling insurers are actively preparing to sell off assets to settle their outstanding policyholder dues.
At a recent workshop, IDRA Chairman Mir Nadia Nivin said initiatives would be taken from next week to pay customers’ claims by selling companies’ assets. 
However, she did not disclose which companies’ assets would be sold.
When contacted, Abdur Rahim Bhuiyan, acting chief executive officer (CEO) of Far East Islami Life Insurance, said the company welcomed the IDRA initiative.
“We welcome the IDRA initiative. No one had taken such an initiative before. We hope that if it is implemented, customers’ confidence in Far East will increase further,” he said.
He said the company had already taken steps to sell its assets, with advertisements published in three newspapers for the sale. A total of six assets, including land and buildings, have been put up for sale.
“Among these, we had Treasury bonds worth Tk6 crore, which were sold for Tk5.27 crore. AB Bank has paid Tk3 crore against the sale proceeds, while the remaining amount is yet to be received,” he said.
He added that the company had Tk20 crore invested in shares. If those shares were sold at current market prices, the company could receive around Tk11 crore to Tk12 crore.
Explaining the assets being considered for sale, the acting CEO said two were located in Dhaka, while the others were in Rajshahi, Sylhet, Barishal and Rangpur.
“There is also a building in Karkail, which was valued at Tk259 crore. It is not possible to say at this moment how much we will receive if it is sold now,” he said.
Asked which categories of customers would receive payments, he said all types of customers would be paid.
“However, those who have been waiting for their claims for a long time will be paid after verification and scrutiny,” he said.
Meanwhile, Baira Life Insurance’s acting CEO Md Mamun Khan told Daily Sun that the company had also taken initiatives to sell some of its assets.
“Some initiatives have been taken to sell our assets. They have not been sold yet. However, IDRA has been informed about the proposed sales,” he said.
He said around Tk5 crore of the company’s funds were deposited with Global Islami Bank.
“If we could withdraw that money, it would be possible to pay customers’ claims. The matter has been brought to the attention of the IDRA chairman. She has also assured us that she would cooperate in withdrawing the funds,” he said.
Far East faces massive unsettled claims
According to unaudited data reported by life insurance companies for the first quarter of 2026 (January-March), Far East Islami Life Insurance had total assets worth Tk3,149.57 crore as of March. Of this, investments stood at Tk1,915.41 crore, while investment income was Tk2.46 crore. However, the company’s closing life fund was negative. At the end of March 2026, Far East Islami Life Insurance’s closing life fund stood at negative Tk944.93 crore.
During the first quarter, the company’s total claims amounted to Tk3,339.78 crore. Of this, claims worth Tk29.35 crore were settled, leaving Tk3,310.43 crore in unsettled claims.
As a result, only 0.88% of the total claims had been settled, while 99.12% remained unsettled.
As of March 2026, Baira Life Insurance Company Ltd had total assets worth Tk80.52 crore. 
Of this, investments amounted to Tk59.82 crore, while investment income stood at Tk0.68 crore.
During the period, Baira Life’s total claims amounted to Tk80.11 crore. Claims worth Tk0.07 crore were settled, while Tk80.04 crore remained unsettled.
Thus, only 0.09% of the company’s total claims had been settled, while 99.91% remained unsettled.
As of March 2026, Progressive Life Insurance Company had total assets worth Tk253.79 crore. 
Of this, investments stood at Tk203.30 crore, while investment income during the first quarter was Tk3.28 crore.
During the first quarter, Progressive Life’s total claims amounted to Tk169.90 crore. Of this, claims worth Tk10.67 crore were settled, while Tk159.23 crore remained unsettled.
Consequently, 6.28% of the total claims had been settled, while 93.72% remained unsettled.
Most life insurance claims remain unpaid
In the first quarter of 2026, the total claims of the country’s 36 life insurance companies amounted to Tk6,812.67 crore.
Of this, claims worth Tk2,402.55 crore were settled, representing 35.27% of the total claims. 
In contrast, claims worth Tk4,410.12 crore remained unpaid, accounting for 64.73% of the total claims.