UNDP, IDRA move to develop microinsurance regulatory framework
The United Nations Development Programme, in partnership with the Insurance Development and Regulatory Authority, launched an initiative to develop a national microinsurance regulatory framework, with an inception workshop in Dhaka on Thursday, 2 July 2026.
The proposed framework seeks to expand access to affordable, appropriate and reliable insurance services for low-income, underserved, and climate-vulnerable communities.
Mir Nadia Nivin, Chairman of the Insurance Development and Regulatory Authority, underscored the initiative's significance for the growth of Bangladesh's insurance sector while speaking as the special guest.
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"The insurance sector must continue to explore innovative distribution channels to 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 the United Nations Development Programme Bangladesh, emphasised that microinsurance is not merely an insurance product but 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 Doctor Mohammed Helal Uddin, Executive Vice Chairman of the Microcredit Regulatory Authority, highlighted clear opportunities for regulatory collaboration between the insurance and microfinance sectors.
"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.
The workshop convened representatives from the Insurance Development and Regulatory Authority, the Microcredit Regulatory Authority, insurance companies, microfinance institutions, financial institutions, insurtech firms, and development partners.
Participants discussed the regulatory, institutional, and market reforms required to expand microinsurance while ensuring consumer protection, market confidence, and responsible innovation.
The recommendations will inform a regulatory gap analysis, a draft microinsurance regulatory framework, and a strategic roadmap for implementation.
The outputs are expected to support the development of a practical and inclusive microinsurance market that encourages innovation, protects consumers, and strengthens the financial resilience of low-income, underserved, and climate-vulnerable communities.
