Kathmandu. Among the licenses, fiscal year 2080. The solvency ratio of 11 non-life insurers evaluated is 3.24.
According to the Nepal Insurance Authority( NEA), the insurance evaluation of 11 of the total 18 non-life insurers, including micro insurers, has been approved till May 15. The solvency ratio of the approved non-life insurers ranges from a minimum of 2.63 to a maximum of 4.32.
According to the NRA, Siddhartha Premier has the highest solvency ratio of 4.32 on the basis of insurance evaluation. Similarly, Nepal Insurance has the second highest number of 4.61. Sanima GIC Insurance has the lowest solvency ratio of 2.63.
According to the AUTHORITY, the solvency ratio of all non-life insurers is above the minimum regulatory standards. This means that all insurers are fully capable of meeting financial obligations.
An insurer with a solvency ratio of less than 1 is considered financially unhealthy, and regulatory oversight of such insurers becomes tighter. Less than 1 means that the insurer does not have sufficient assets to meet the financial obligations to the insured and other moneylenders. Having a solvency ratio of 1.3 means that the insurer will have to pay Rs 1 to meet the liability of Rs 1. Capital assets worth Rs 1.30 are available.
