Dhaka, Dec. 21 -- The interim government has prepared a draft amendment to the Insurance Corporation Act that would allow insurance companies to reinsure their risks with foreign firms.

It would end the current requirement to place reinsurance exclusively with the state-owned Sadharan Bima Corporation.

The move has drawn objections from Sadharan Bima Corporation, which has written to the ministry opposing the proposal, citing concerns over foreign currency outflow and loss of domestic market control.

Under existing rules, insurance companies must reinsure their risks with the state-owned corporation to manage large liabilities and ensure immediate claim settlement capacity.

Sadharan Bima Corporation currently operates under the Insura...