Bangladesh has begun work on a national microinsurance regulatory framework aimed at expanding access to affordable insurance services and strengthening the financial resilience of low-income, underserved and climate-vulnerable communities.
The initiative was launched on Thursday at a national inception workshop jointly organized by the United Nations Development Programme (UNDP) and the Insurance Development and Regulatory Authority (IDRA), bringing together regulators, insurers, microfinance institutions, financial institutions, InsurTech firms and development partners.
Speaking as the chief guest, IDRA Chairman Mir Nadia Nivin said a dedicated regulatory framework would help expand insurance coverage and deepen financial inclusion.
"The insurance sector must continue to explore innovative distribution channels that can reach underserved communities and genuinely meet their needs. By establishing an appropriate microinsurance regulatory framework and promoting effective partnerships, including with microfinance institutions, we can significantly improve insurance penetration and strengthen financial resilience across Bangladesh," she said.
Sarder Asaduzzaman, assistant resident representative of UNDP Bangladesh, said microinsurance should be viewed not only as an insurance product but also as a tool for building resilience.
"UNDP's role is rooted in our mandate to support countries in advancing resilience, financial inclusion and sustainable development. Our objective is not to prescribe a particular market model. Rather, it is to support Bangladesh in developing a microinsurance regulatory framework that enables innovation, promotes consumer protection, strengthens market confidence and expands access to appropriate insurance solutions," he said.
Professor Dr Mohammed Helal Uddin, executive vice chairman of the Microcredit Regulatory Authority (MRA), said closer coordination between insurance and microfinance regulators would be key to expanding access while protecting policyholders.
"We cannot bypass regulation, but we can certainly simplify it. By bringing together regulators, insurers and microfinance institutions, we can develop a framework that expands insurance access while safeguarding the interests of policyholders," he said.
Discussions at the workshop focused on the regulatory, institutional and market reforms needed to expand microinsurance while ensuring consumer protection, market confidence and responsible innovation.
The recommendations from the workshop will feed into a regulatory gap analysis, a draft microinsurance regulatory framework and a strategic roadmap for implementation, which organizers say will help build a more inclusive insurance market and strengthen the financial resilience of vulnerable communities.