KATHMANDU — A high-level economic reforms committee formed by the Nepalese government has proposed a comprehensive seven-point programme aimed at broadening the country’s insurance coverage and strengthening the sector’s infrastructure.
In its final report recently submitted to Deputy Prime Minister and Finance Minister Bishnu Poudel in Kathmandu, the committee emphasized the need to let market competition determine insurance premiums. It stated that shifting toward a competitive pricing system would enhance the accessibility and appeal of insurance products.
To expand the reach of insurance, the committee called for collaborative efforts from all stakeholders to raise awareness and improve public literacy about insurance. “All stakeholders should be involved in increasing insurance-related literacy and knowledge to increase mass access to insurance,” the report noted.
One of the committee’s key financial recommendations includes enabling insurance companies to invest in long-term infrastructure projects through specially issued infrastructure bonds. This move aims to bridge the gap between the financial instruments held by insurers and viable high-return investment opportunities.
The panel also proposed that municipalities make house insurance mandatory when approving building construction plans in urban areas, ensuring better disaster resilience and financial protection.
In terms of risk management, the report recommended that a portion of reinsurance responsibilities be allocated to foreign reinsurance companies. This, the committee argued, would improve risk diversification and support more sustainable underwriting practices.
To build capacity within the industry, the committee advised establishing a national insurance academy in collaboration with existing insurance companies. The academy would help train professionals and raise standards across the sector.
Additionally, the report advocated for increased support and autonomy for Nepal’s insurance regulatory authority, highlighting the need for better governance, operational efficiency, and institutional capacity.
Finally, the committee suggested that subsidies for agriculture and livestock insurance be administered at the local level rather than the federal level, aiming for more tailored and efficient implementation.
The recommendations mark a strategic push by the Nepalese government to modernize its insurance sector and ensure broader financial protection for its citizens.
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