Bangladesh to raise foreign stake in life insurance sector to 83%April 23 2015 by InsuranceAsia News Staff
The government of Bangladesh is likely to increase the stake that foreign firms can hold in local individual insurance firms, from the current 60% to 83%, sources said.
The move is part of the government’s efforts to attract more foreign insurance companies in the country and to address the growing demand from some international insurance firms.
The Insurance Development and Regulatory Authority (IDRA), the insurance regulator of Bangladesh, also seeks to raise the size of the paid-up capital required for life insurers, from BDT300m (US$3.85m) to BDT1bn (US$12.8m), to ensure absolute controlling stake for a foreign firm in a joint venture.
The new rules have been approved in principle by IDRA but still needs the issuance of a statutory order by the government to take effect.
Insurance multinationals from Japan, the United Kingdom, and India have expressed interest to invest in the country’s insurance market, whose insurance penetration remains low.
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Insurance Council of Australia wants more information from the Australian Securities and Investments Commission.
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Officials said on Wednesday that they are finally ready to award licences to foreign insurers.