Page 23 - Insurance Times February 2024

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Bangladesh launches Banc- sualty insurers for colluding to fix prices
Nepal launches first Na- in contracts with corporate clients.
tional Insurance Policy assurance Channel The Financial Services Agency has is-
The Government of Nepal (GoN) is- Bangladesh launched bancassurance sued business improvement orders on
sued the National Insurance Policy channel after the central bank allowed the core units of Tokio Marine Holdings
2023 for the first time to increase in- banks to sell insurance products, which Inc., MS&AD Insurance Group Hold-
surance access and penetration. Re- could help the fledgling sector grow in ings Inc. and Sompo Holdings Inc., said
cent Council of Ministers meeting ap- a country with one of the lowest pen- Finance Minister Shunichi Suzuki at a
proved the National Insurance Policy. etration rates. briefing. The investigation has rocked
The federal government announced IMARC Group estimated the global Japan's casualty insurance sector,
a National Insurance Policy to guide bancassurance market at $1.268 tril- which has also been under fire for fail-
the insurance industry in the cur- lion in 2021. ing to detect fraudulent auto insur-
rent fiscal year. Nepal Insurance ance claims.
The central bank announced recently
Authority submitted a Policy draft to
the Ministry of Finance under Sec- that banks can market and sell insur- The three groups command about 90
tion 5 of the Insurance Act 2079. ance as insurers' corporate agents. The per cent of the entire market worth
order took effect immediately. The roughly 9 trillion yen ($63 billion) in
Rajuraman Paudel, executive direc- annual net premium revenue, accord-
tor and spokesperson of Nepal In- country's 11,239 bank branches will ing to data by the industry association
surance Authority, confirmed that sell insurance policies and deposit pre- and companies.
the Cabinet Meeting approved the miums to bank depositors.
National Insurance Policy. The Policy "Bancassurance will benefit banks and Suzuki said it is regrettable that Sompo
takes effect immediately. insurance companies," said Pubali Japan Insurance, Tokio Marine &
Nichido Fire Insurance, Mitsui
The Policy aims to make insurance ac- Bank managing director Mohammad
cessible to the average Nepalese. The Ali.He says the partnership will reduce Sumitomo Insurance and Aioi Nissay
Ministry of Finance and Insurance Au- insurance companies' operational costs Dowa Insurance had engaged in
thority will oversee policy implemen- and boost consumer confidence. "At pricefixing, and urged the firms to take
tation. The Policy addresses insurance the same time, deposits at banks will drastic measures to prevent a recur-
access, subsidisation, long-term goals, go up." rence.
and poverty alleviation. Long-term, The "inappropriate behavior was wide-
main, and specific goals are set. The Japan penalises property spread, repeated, and continuous,
Policy also includes the strategy for which I think was highly malicious,"
achieving the goals. The Policy in- insurers for price fixing Suzuki said. Problems including pres-
cludes an institutional framework for Japan's financial regulator penalised sure on sales staff to increase profits
implementation. the country's largest property and ca- were identified, he added.

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