Dhaka, Dec. 6 -- A large volume of reinsurance claims pending with the state-run Sadharan Bima Corporation (SBC) is a major reason behind the low claim settlement ratios in the insurance sector, according to industry insiders.

Sadharan Bima Corporation owes insurers more than Tk 14 billion in reinsurance claims as of December 2024, according to the Insurance Development and Regulatory Authority (IDRA). As the SBC has yet to clear these claims, insurers, in turn, have failed to pay dues to their clients.

Non-life insurers have so far paid Tk 12.37 billion to policyholders against total claims of Tk 38.72 billion as of December last year. This means their claim settlement ratio stood at only 32 per cent, according to IDRA data.

"Claim se...