Page 35 - Insurance Times November 2023

In the coming days, Nepal will generate more safe,
renewable energy. In the case of hydropower, even the NIA will always focus on how to
Honourable Prime Minister of India has announced to have mitigate new challenges, new adoption
an electricity power trade of 10,000 megawatts within 10 of technology, knowledge sharing,
years. In this scenario, our hydropower projects need
massive reinsurance support. GIC India has also provided resolving any petty issues, doing CSR
reinsurance support for these project insurances, which are activities, and climate change-related
a little bit inadequate. If the Nepal market receives more programs. It will collaborate with the
support from GIC in the matter of hydropower insurance,
then other reinsurers will approach this market easily. Nepal Insurance Authority and
Besides this, we are seeking more technical and RI government to boost a healthy and
placement support from GIC as well. We expect that, under competitive environment in the
the leadership of GIC Re, in collaboration with other
reinsurers, we will join hands to provide adequate RI support. insurance sector.
This will fulfil the target set by the Indian government to
purchase 10,000 megawatts of electricity from insurance We are also successful in providing the feeling of "Friend in
aspect. Sorrow" through the mode of insurance claims. Now we are
Under the tariff regime, we have fixed pricing for hydropower working on enhancing fast and reliable claim settlement.
project insurance. If reinsurers are not willing to underwrite Because a claim is the ultimate product that we are offering
the existing risk and pricing model, we are also in consultation to the insured, By ensuring timely payment of claims, we
with reinsurers as a pooling mechanism to cover hydropower build trust. This will eventually increase the penetration of
project risks as win-win situation model. insurance. It will support word-of-mouth publicity among the
general public. On the other side, it will enhance economic
Q. Looking ahead, what are your long-term vision and activity, risk-taking capabilities, and industrialization. The
strategies for the Nepal Insurance Association in banking sector will be well protected under the insurance
advancing the insurance sector's interests and coverage. Even the government will have to spend less on
post-disaster compensation. The public also becomes well-
contributing to the country's overall development?
guarded economically to restart their loss-affected business
A : NIA will always focus on how to mitigate new challenges,
by obtaining the claims.
new adoption of technology, knowledge sharing, resolving
any petty issues, doing CSR activities, and climate change- The life insurance sector has about 35% penetration,
related programs. It will collaborate with the Nepal whereas the non-life insurance sector has about 8-9%. Other
Insurance Authority and government to boost a healthy and are our grey areas where we could increase penetration.
competitive environment in the insurance sector. As a part of knowledge sharing, we often carry out

Despite our efforts, most urban households are not being international seminars. As of now, we are also conducting
insured properly, either underinsured or uninsured. Even an International Conference on Inclusive Insurance (ICII)
though this country is in the top earthquake zone, people 2024 in association with the Nepal Insurer's Association in
are less concerned about obtaining insurance. Motor collaboration with the Munich Re Foundation, which is
insurance is being purchased as a part of the compulsion scheduled for Oct/Nov 2024. This conference will be hosted
imposed by the regulations. Miscellaneous insurances are by the Nepal Insurer's Association in support of the Munich
rarely taken by the general public. We have always had a Re Foundation and the microinsurance network. This type
long-term vision of inclusion of those entities or people inside of conference will be beneficial for all insurers and
the circumference of the insurance sector. concerned stakeholders. T

The Insurance Times November 2023 33