The Governor of the Bangladesh Bank, Ahsan H. Mansur, has issued a decisive call to action for the nation’s insurance companies, urging them to transition towards a fully cashless transaction system. Speaking as the chief guest at the launch of the Insurance Development and Regulatory Authority’s (IDRA) new website and Digital Insurance Manual at the BIAM Foundation auditorium in Dhaka, the Governor underscored that digitisation is no longer optional but a prerequisite for economic survival.
A Pivot Towards Productivity and Governance
Governor Mansur was candid in his assessment of the industry’s current state, suggesting that a historical fixation on “short-term gains” has led the sector astray. He articulated a vision to transform insurance into a robust, productive sector that contributes meaningfully to the national economy.
Under the proposed framework, all premium collections will be routed through the banking system. The Governor noted that the IDRA is currently drafting comprehensive guidelines to facilitate this shift. By eliminating physical cash transactions, the Governor believes the state will see a significant rise in revenue through enhanced transparency and a widened tax net.
“We have lost our way by chasing short-term profits. It is time to rebuild this as a productive sector. If we can reduce cash transactions, national revenue will inevitably grow,” the Governor remarked.
Addressing the Liquidity Crisis
One of the most pressing issues discussed was the industry’s struggle to settle claims due to insufficient funds—a direct result of poor fiscal management. The Governor stressed that while premiums are collected and investments made, the failure to pay out claims undermines public trust. He insisted that funds must be managed with absolute integrity and “exemplary governance.”
To support this, the Central Bank has pledged to provide necessary assistance to the insurance sector, provided companies adhere to strict governance conditions.
Key Stakeholders and Reform Initiatives
| Figure | Role | Key Contribution/Statement |
| Ahsan H. Mansur | Governor, Bangladesh Bank | Called for cashless premiums and strict governance. |
| M. Aslam Alam | Chairman, IDRA | Unveiled the Digital Manual for legal and institutional reform. |
| B.M. Yusuf Ali | President, BIF | Requested central bank help to ensure bank-held funds are accessible for claims. |
| Kazi Sakhawat Hossain | VP, BIA | Highlighted the manual’s utility for all industry practitioners. |
The Digital Road Ahead
IDRA Chairman M. Aslam Alam explained that the new Digital Insurance Manual is a cornerstone of the authority’s broader reform agenda. It provides an open-access repository of laws, rules, and procedures, simplifying compliance for insurers. He warned that if these digital and institutional reforms are not fully realised within the next five years, the systemic issues currently plaguing the sector will only intensify.
The Governor concluded by noting that the insurance market in Bangladesh remains disproportionately small relative to the population. He argued that if the sector fails to expand and cover both movable and immovable assets, the nation’s Gross Domestic Product (GDP) growth will remain artificially constrained.