DHAKA, Insurance Bulletin: The Insurance Development and Regulatory Authority (IDRA) has formally requested the Financial Institutions Division (FID) of the Ministry of Finance to maintain the insurance registration renewal fee for 2026 at BDT 1 per thousand of gross premium, rather than implementing a recently proposed hike.
On Thursday (June 25), IDRA sent a letter to the FID urging them to issue a directive keeping the renewal fee at BDT 1 per thousand. The new Chairman and members of the regulatory authority concluded that this rate is logical, following thorough consultations with the Bangladesh Insurance Association (BIA).
Earlier this year, on February 4, the FID published a controversial gazette that increased the registration renewal fee by 2.5 times—jumping from BDT 1.00 to BDT 2.50 per thousand.
Private life and non-life insurance companies have vehemently opposed the fee increase for 2026. The BIA has labeled the hike a major financial burden for the sector, pointing out that a company with a gross premium of BDT 100 crore would see its renewal fee jump from BDT 10 lakh to BDT 25 lakh. They had previously demanded an immediate waiver of the extra charge.
Ignoring the demands of insurance company owners, the FID issued an order on June 23 mandating that all insurance companies pay the 2026 registration renewal fee at the increased rate of BDT 2.50 per thousand.
IDRA's recent letter specifically requests the FID to reconsider its June 23 directive for the year 2026. However, the letter did not mention any decisions regarding potential initiatives to reduce renewal fees in subsequent years under the amended regulations.
IDRA is currently awaiting the FID's final approval regarding the reversal of the fee hike.
