Pending insurance claims in Bangladesh’s life insurance sector crossed Tk3,600 crore between April and June 2025. according to newly published data from the Insurance Development and Regulatory Authority (IDRA).

Out of Tk5,574 crore in total claims filed during this period, only Tk1,946 crore was settled, leaving Tk3,628 crore unpaid.

Only three life insurance companies managed to settle 100% of their clients’ claims, while the majority left significant dues pending.

Former Chartered Life Insurance CEO SM Ziaul Haque said that the situation reflects one of the sector’s biggest challenges.

“The fact that over Tk3,500 crore remains unpaid in just three months is extremely disappointing,” he said.

He noted that more than Tk2,500 crore of the unpaid amount is owed by a single company, while the remaining 35 companies together account for about Tk1,000 crore.

“But unfortunately, the entire insurance sector is facing propaganda that none of the companies are paying clients,” he added.

Ziaul Haque urged IDRA to take stronger action, including compelling companies with massive unpaid claims to sell assets if necessary.

He warned that without tougher measures, public trust in life insurance will continue to erode.

Companies that paid in full

IDRA’s report shows that three insurers – Alpha Islami Life Insurance, Life Insurance Corporation of Bangladesh, and Mercantile Islami Life Insurance – settled 100% of their claims during April-June 2025.

During this period, the three insurers paid Tk7.95 crore, Tk1.82 crore, and Tk2.99 crore respectively, settling all claims made against them.

At the other extreme, four companies settled less than 1% of their claims.

Sunlife Insurance reported no claims during the period. Company Secretary Abu Bakkar Omey said its software had not been updated, preventing claims and settlement data from being reflected.

Despite changes in ownership – Green Delta Insurance acquired shares from entrepreneur-directors in October 2023 – Sunlife’s financials have weakened. Its gross premium income dropped to Tk10.94 crore in June 2025 from Tk25.65 crore a year earlier, while its life fund fell to Tk50.20 crore from Tk58.18 crore.

Golden Life Insurance also failed to settle any claims, leaving Tk39.24 crore unpaid.

Padma Islami Life Insurance Company settled only Tk2.05 crore, or 0.82% of its claims. Baira Life Insurance Company settled just 0.61% of its claims.

Some larger companies performed better. MetLife paid Tk632.62 crore, settling 88.25% of its Tk716.82 crore claims. National Life Insurance settled Tk335.71 crore, or 96.06% of its Tk349.47 crore claims.

Delta Life Insurance settled Tk189.60 crore out of Tk249.41 crore claims.

Fareast Islami Life’s Tk2,742cr dues

Fareast Islami Life Insurance alone owes policyholders Tk2,742 crore. Between April and June 2025, it settled just Tk51.43 crore, or 1.84% of claims.

The company has long been mired in scandal. An IDRA-commissioned audit by Shiraj Khan Basak & Co, submitted in May 2022, revealed misappropriation of Tk2,367 crore and accounting irregularities involving Tk432 crore.

In total, about Tk2,800 crore was siphoned from company funds. Multiple lawsuits were later filed against its former chairman, directors, CEO, and senior officials.

IDRA’s position

IDRA spokesperson Saifunnahar Sumi said the regulator is taking continuous measures to ensure companies settle claims.

“Those failing to do so are summoned for hearings to explain why. This is part of our regular activities,” she noted.

She added that stricter monitoring and planned reforms in laws and regulations aim to strengthen accountability. “If properly implemented, these reforms will enhance customer trust in the insurance sector.”