Page 19 - The Insurance Times September 2025

that collective investment in climate The study noted that while countries paigns. However, the industry contin-
adaptation infrastructure and risk edu- like Japan and South Korea are further ues to face challenges in claim servic-
cation is crucial. He urged govern- along in addressing demographic risk, ing and cross-border policy manage-
ments to implement proactive disaster others in Southeast Asia must move ment. Authorities are now focusing on
management policies and emphasized quickly to avoid future fiscal and social enhancing digital processing and ex-
that reinsurance can only remain sus- strain due to inadequate senior care tending coverage to undocumented
tainable if risks are equitably shared infrastructure and coverage. migrant segments.
and managed with foresight.
Nepal Sees 17% Surge in Nepal Government Sus-
Swiss Re Highlights Insur-
Foreign Insurance Income pends Insurance Authority
ance Challenges from Amid Rising Overseas Em- Chair Over Fraud Allega-

Asia’s Aging Population
ployment tions
Swiss Re has highlighted the pressing
Nepal has recorded a significant 17% The Government of Nepal has sus-
need for Asia’s insurance sector to
rise in foreign insurance income in the pended the Chairperson of the Nepal
recalibrate its offerings to serve the
last fiscal year, attributed to an in- Insurance Authority, Surya Prasad
region’s rapidly aging population. With
crease in the number of citizens pur- Silwal, following allegations of submit-
a projected 25% of Asia's population to
suing employment abroad. According ting fraudulent documents. According
be over 60 by 2050, insurers must re-
to data from the Insurance Board of to official sources, Silwal was sus-
think their product portfolios and cov-
Nepal, this growth reflects greater pended by the Cabinet after initial in-
erage models. awareness and regulatory enforce- vestigations revealed that he had al-
At a recent regional briefing, Swiss Re ment regarding insurance require- legedly presented forged academic
underscored that rising life expect- ments for foreign-bound workers. credentials while applying for the post.
ancy, shrinking family support struc- As more Nepalis travel to Gulf coun- The Ministry of Finance, which over-
tures, and increased healthcare needs tries, Malaysia, and other regions for sees the regulatory body, confirmed
demand innovative solutions in long- employment, mandatory life and the action and stated that further in-
term care, retirement planning, and health insurance policies for migrant quiry is underway. The incident has
health insurance. workers are driving this revenue surge. raised serious concerns regarding gov-
The reinsurer urged insurers to shift Insurance companies have reported ernance and transparency within the
focus from traditional accumulation-fo- enhanced premium collections and a country’s insurance regulatory frame-
cused products to protection-based so- growing base of insured overseas work- work.
lutions tailored for elderly populations. ers, ensuring protection for families Silwal’s suspension has triggered dis-
Governments across Asia are also en- back home. cussions across Nepal’s financial and
couraged to foster insurance penetra- Sector experts believe this trend also regulatory sectors, with experts calling
tion through tax incentives and public- reflects the success of government for more stringent background checks
private models. outreach and insurance literacy cam- for top appointments in public offices.

GST Council may Introduce Input Tax Credit on Corporate Insurance,

no exemption likely
The GST Council is considering allowing Input Tax Credit (ITC) on corporate insurance premiums to reduce the tax bur-
den on businesses. However, sources indicate that a full exemption on corporate insurance from GST is not being con-
sidered at this stage. This means companies would continue to pay GST on employee-related group insurance policies,
but may be allowed to offset this cost through ITC claims. The proposal aims to support businesses offering health and
life coverage to employees without compromising the Centre's tax revenue. Industry stakeholders have welcomed the
possibility of ITC as a balanced move, allowing better compliance while reducing operational costs. A final decision is
expected in the next GST Council meeting, where wider insurance sector taxation reforms are also on the agenda. This
move could make corporate insurance more attractive and affordable for enterprises, especially mid-sized firms.

18 September 2025 The Insurance Times