The Insurance Development and Regulatory Authority (IDRA) of Bangladesh has come under scrutiny after its new chair, Mir Nadia Nivin, initiated steps to reduce insurance company registration fees from 2.5 taka to 1 taka per thousand taka premium. The move follows pressure from the Bangladesh Insurance Association (BIA) and other industry groups, which had earlier opposed the fee increase introduced by former chairman Dr. M. Aslam Alam. Financial analysts warn that the reduction could significantly weaken IDRA’s institutional capacity and reduce government revenue by over 270 million taka.

Economist Dr. Mahmud Osman Imam stated that registration fees are a vital revenue source for IDRA, which lacks other major income streams. He argued that lowering the fee without stakeholder consultation raises transparency concerns and will not solve the sector’s structural problems. According to him, 42 of the country’s 82 insurance companies are financially weak, requiring deeper reforms rather than fee cuts.

Mir Nadia Nivin defended her decision, saying it was based on legal opinion and that the 1 taka rate would apply only for 2026, with the 2.5 taka rate effective from 2027. She denied allegations of favoritism and said all decisions were made in line with government policy and existing regulations.