Page 34 - The Insurance Times July 2025

Together, these measures aim to create a transparent, biometric data and implement stringent verifica on
efficient, and consumer-centric insurance ecosystem that processes for large transac ons, to safeguard against
bridges awareness, accessibility, affordability, and trust fraudulent claims.
gaps restoring public confidence and suppor ng Nepal’s Public awareness is another priority. The NIA is conduc ng
protec on needs.
awareness campaigns in rural areas, par cularly focused on
agriculture and livestock insurance, to educate
Q: How is the regulatory environment in Nepal evolving to communi es and encourage responsible insurance
support innova on, digi za on, and broader insurance behaviour. Addi onally, the NIA has mandated insurance
penetra on across the country? companies to set up Investment Management Units to
A: The Nepal Insurance Authority (NIA) is modernizing strengthen transparency and accountability in investment
regula ons to drive innova on, digi za on, and inclusion. prac ces, ensuring that policyholders' funds are handled
Key among its efforts is the Digital Insurance Policy with prudence.
Guidelines (2080 B.S.), which require insurers to offer
online pla orms for policy purchases, surrenders, and Through these comprehensive ac ons, the NIA aims to
payments. Beginning December 2024, non-life foster a more transparent, secure, and consumer-friendly
insurers—star ng with agriculture and livestock—must insurance ecosystem in Nepal.
issue policies through real- me so ware, improving
efficiency. Q: How do you view the growth poten al of life and non-
life insurance segments in Nepal over the next 5–10 years?
To enhance digital capacity, NIA mandates stronger IT A: Nepal’s insurance sector shows strong growth poten al
investments and requires each insurer to hire at least one
across life and non-life markets, driven by economic shi s,
actuarial analyst from July 2024, ensuring more accurate rising awareness, and regulatory reforms. Life insurance is
pricing and risk management. Reinsurance regula ons projected to reach USD 2.25 billion in premiums by 2025,
have also been updated to gradually lower mandatory growing at 3.18% annually through 2029. In the first half of
domes c cessions, retaining premiums within Nepal.
fiscal 2024/25, life insurers recorded NPR 15.84 billion in
The rollout of the Insurance Regulatory Management first-year premiums—a 14.65% year-over-year
Informa on System (IRMIS) enables real- me data sharing increase—with stock investments nearly doubling to
between insurers and the regulator, promo ng NPR 25.77 billion by January 2025. Non-life insurance grew
transparency and accountability. Through these forward- 7.8% in the first seven months to NPR 24.27 billion, fueled
looking reforms, NIA is building a modern, tech-enabled by stronger economic ac vity and vehicle sales.
insurance ecosystem aimed at improving service delivery, The Nepal Insurance Authority supports this momentum
strengthening oversight, and expanding insurance access through digital policy guidelines requiring online pla orms,
across Nepal.
and micro-insurance programs aimed at rural coverage.
These measures—alongside economic trends and greater
Q: What ini a ves are being undertaken to strengthen public engagement—posi on Nepal’s insurance industry
consumer protec on and trust in the Nepalese insurance for robust, inclusive growth.
sector?
A: The Nepal Insurance Authority (NIA) is commi ed to
Q: What role do you see for reinsurance and foreign
enhancing consumer protec on and rebuilding public trust collabora ons in strengthening Nepal’s insurance
in Nepal's insurance sector through a series of strategic industry and risk capacity?
ini a ves. A key development is the establishment of the A: Reinsurers play a key role in strengthening Nepal's
Insurance Informa on Centre (IIC) by 2025, envisioned as a
centralized grievance redressal mechanism to address
claim-related issues, combat fraud, and provide consistent The Nepal Insurance Authority
informa on—thereby improving transparency and
accountability. (NIA) is committed to enhancing
To streamline and expedite claim se lements, the NIA is consumer protection and rebuilding
developing a web-based claim portal, aiming to reduce public trust in Nepal's insurance
delays and ensure mely payments, boos ng consumer
confidence. In parallel, the NIA has introduced an -fraud sector through a series of strategic
measures, including direc ves for insurers to collect initiatives.

30 July 2025 The Insurance Times