Dhaka, Feb. 21 -- Only select insurers with a strong track record of settling claims will be allowed to participate in the bancassurance business, according to the insurance regulator.

The Insurance Development and Regulatory Authority (IDRA) made this announcement during a recent meeting with commercial bank CEOs at its headquarters.

"Not all insurers will be allowed to participate in this bancassurance business," IDRA Chairman Mohammed Jainul Bari was quoted as saying. "We will be very selective."

Mr Bari's comments suggest a gradual approach to the rollout of the bancassurance business model between banks and insurers.

His comments came in response to concerns raised by bank CEOs and managing directors regarding the poor claim sett...