The Bangladesh Securities and Exchange Commission (BSEC) has raised concerns about audit opinions on the 2024 financial statements of 27 listed insurers, citing potential implications for investor confidence, policyholder protection and market disclosure standards.
Following its review of the latest annual audited accounts, the capital markets regulator has asked the Insurance Development and Regulatory Authority (IDRA) to consider regulatory steps against the insurers involved in line with prevailing insurance and securities laws.
According to The Business Standard’s report, BSEC said statutory auditors for the insurers issued a range of non-standard opinions, including Adverse Opinions, Qualified Opinions, Emphasis of Matter paragraphs, Going Concern threats, and conclusions pointing to Material Uncertainty in the companies’ financial statements. According to the commission, such audit outcomes are generally viewed by regulators and investors as signals of increased risk related to financial reporting, governance, and risk management, rather than as routine audit observations.
In a letter sent by its Corporate Reporting Department to the IDRA chair, BSEC pointed in particular to findings related to going concern and material uncertainty. The commission said these observations directly address whether the affected insurers can continue operating and meet obligations to policyholders and other creditors. BSEC stated in the letter that “audit observations related to going concern risks and material uncertainty are of particular concern, as they directly question the companies’ ability to continue operations and meet policyholder obligations,” underlining the weight it is placing on the issue.
The 27 companies identified by BSEC span both life and non-life business lines. The insurers named are:
BSEC has requested that IDRA, as the primary supervisor of insurers, review the relevant audit reports and determine whether measures such as enhanced monitoring, special or forensic audits, or the imposition of corrective plans are appropriate in individual cases.
The securities regulator has linked the audit findings to broader objectives of maintaining credible financial disclosures in a sector that manages long-duration liabilities and household savings. For listed insurers, BSEC’s market oversight role intersects with IDRA’s prudential responsibilities, creating a shared focus on areas such as solvency, reserving practices, and the recognition of impairments.
BSEC said it continues to review audited financial statements across all listed entities in Bangladesh and to track how matters raised by auditors are being resolved. In the case of insurers, the commission has indicated that coordination with IDRA will be important for reinforcing governance expectations and disclosure practices across the sector. Market participants are likely to monitor how the two regulators coordinate on supervisory responses, particularly where auditors have raised questions about going concern assumptions or material uncertainties.
Bangladesh currently has 82 insurance companies in operation, of which 58 are listed on the local stock exchange. Among the listed entities, 43 are non-life (general) insurers and 15 operate in the life segment. Industry data indicate that the market is projected to expand over the medium term. According to Statista, gross written premium in Bangladesh’s insurance sector is expected to reach US$15.56 billion in 2025, with life insurance contributing an estimated US$9.48 billion. Per capita insurance expenditure is forecast at US$88.22 in 2025, including US$53.73 for life insurance products.
From 2025 to 2029, the market is projected to grow at a compound annual rate of 4.02%, reaching US$18.22 billion by the end of the period. The life segment is expected to increase at 3.89% annually, with premiums rising to about US$11.04 billion in 2029. Factors cited for the projected growth include rising awareness of health and life insurance, higher disposable income, and increasing demand for health coverage. In this context, how BSEC and IDRA respond to the audit findings may influence investor views on governance and risk management in Bangladesh’s insurance sector, both domestically and among regional insurance investors.
