The Insurance Development and Regulatory Authority (IDRA) has initiated a joint special audit involving four regulatory bodies to ensure transparency and accountability in the insurance sector.

To implement this, a draft Terms of Reference (ToR) has been formulated through the coordination of IDRA, Bangladesh Bank, the National Board of Revenue (NBR), and the Bangladesh Securities and Exchange Commission (BSEC).

Under this initiative, various financial activities of insurance companies—including financial statements, bank accounts, investments, premium collections, claim settlements, and tax- and VAT-related information—will be scrutinized simultaneously. The proposal initially covers data from the last five fiscal years, with provisions to extend or shorten the audit timeframe if necessary.

According to concerned stakeholders, various aspects of insurance companies' financial activities fall under multiple regulatory jurisdictions. Consequently, conducting separate audits often makes it difficult to obtain a complete picture. Through a coordinated audit, detecting financial irregularities, data inconsistencies, misappropriation of funds, and potential fraud will become much easier.

Reports indicate that at least a dozen insurance companies have been attempting to bypass regulatory bodies to conceal financial irregularities, data discrepancies, fund misappropriation, and fraudulent activities.

Speaking on condition of anonymity, a top IDRA MEMBER told UNB that it will become easier to penalize companies trying to cover up their financial irregularities and those with data inconsistencies.

He added that the special audit coordinated by the four regulatory bodies will help prevent attempts by these companies to cover up various fraudulent incidents.