Bangladesh regulator suspends Standard Insurance

June 23 2015 by InsuranceAsia News Staff

The Insurance Development and Regulatory Authority (IDRA) of Bangladesh has suspended the operating licence of Standard Insurance, one of the country’s leading general insurance companies, after it failed to reinsure its policies.

IDRA reportedly imposed a three-month suspension on Standard Insurance for failing to reinsure BDT463.3m (US$5.98m) worth of its policies.

Aside from suspending Standard Insurance’s operating licence for three months, IDRA also asked the insurer to explain why its licence should not be revoked.

During the suspension period, Standard Insurance will not be allowed to issue cover notes or insurance certificates.

It is also banned from new business activities, the report said.

A senior IDRA official was quoted as saying that Standard Insurance clearly violated the law when it totally failed to comply with mandatory reinsurance regulation for some of its big policies.

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