Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Insurance Authority (NIA) Chairman Sharad Ojha has directed reinsurance companies to collaborate with a clear action plan to enhance the capacity of Nepal’s insurance market. Speaking at a reinsurance discussion and interaction program held Thursday in Kathmandu with insurers, reinsurers, and reinsurance brokers, Ojha emphasized the need for a structured approach to develop the sector.
He instructed stakeholders to formulate a comprehensive strategy—incorporating international best practices—to boost initial, medium, and advanced capacity levels, submitting it to the NIA for review. “We must address ambiguities in the reinsurance sector step by step. Reinsurance companies must be competitive, and we will ensure policy stability. An integrated directive is in progress, and we will consider insurers’ suggestions,” Ojha stated.
Highlighting a tougher stance, Ojha announced that the NIA is preparing a dedicated team to facilitate the implementation of the Insurance Act, rules, directives, and procedures. “The authority will become stricter in enforcing these regulations to curb malpractices,” he said, addressing the rising number of daily complaints regarding claim settlements—a critical issue plaguing the sector. “Insured individuals deserve timely claim payments after paying premiums. Insurers must prioritize parallel progress in premium collection and claim disbursements,” he added.
Ojha stressed the importance of a collaborative effort involving the government, NIA, insurers, micro-insurers, and reinsurers to mature the insurance industry. He assured the authority’s readiness to support this transition with responsibility and integrity. NIA Executive Director Sushildev Suwedi echoed this commitment, stating that the authority is dedicated to resolving sector challenges and promoting growth.
The program, welcomed by NIA Director Shambharaj Lamichhane as an opportunity to gather suggestions on reinsurance issues, featured diverse inputs. NIA Deputy Director Ram Kojo presented legal frameworks, while Nepal Reinsurance Company CEO Surendra Thapa and Himalayan Reinsurance Company CEO Upasana Paudel outlined market challenges and solutions. Nepal Insurers’ Association Chairman Birendra Baidwar discussed reinsurance practices and hurdles. Attendees included NIA directors and staff, CEOs of insurance, micro-insurance, and reinsurance companies, department heads, and reinsurance brokers.
Globally, stricter regulatory frameworks are emerging, with India’s IRDAI and the UK’s FCA enforcing compliance to protect policyholders, a model Nepal aims to emulate. This intensified approach could strengthen Nepal’s insurance sector, pending effective execution.
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