Kathmandu. Small insurance companies established with the aim of expanding micro insurance to include the marginalized and poor sections under the insurance security umbrella have competed with big insurance companies.
Although it is said that with the increase in the number of insurance companies, insurance will expand and the general public will have access to insurance, but despite the increase in the number of micro-insurers, the marginalized, poor and farmers have still not been able to get the protection of insurance.
Small insurance companies are facing challenges from big insurers in the market as they are focused on selling through traditional insurance and traditional sales styles in cities and urban areas.
Office of the Auditor General of Nepal Insurance Authority for the fiscal year 2080. In the post-audit report of 81, it has been mentioned that the share of micro insurance in the overall insurance business is low. The Auditor General has concluded that micro-insurance companies have to compete with big insurance companies and do business, due to which micro insurance has not been expanded.
Commenting on micro-insurance after the audit, the Auditor General has advised the AUTHORITY to make appropriate arrangements on the basis of sustainability of small insurance companies, market risk and international practice.
At present, there are 14 large life insurers with an authorized capital of Rs 5 billion and three small life insurers with an authorized capital of Rs 750 million. Similarly, 14 non-life insurers with authorized capital of Rs 2.5 billion and four micro non-life insurers with authorized capital of Rs 750 million are in operation.
