- Hangma Subba
Why did the insurance business see growth even in difficult and stressful times like Ma’am 1 Corona? This question belonged to a student who had come to inton. He was very curious about insurance and wondered how insurance could grow in that case.
Of course, the relationship between insurance and Corona has nothing to do with future accidents and the economic damage it causes. Insurance should be done by assessing the future. Insurance is the most important belief because insurance touches every aspect of a person’s life. And it is said, “Those living in glass houses need to understand the importance of insurance. ’
Often, students say that there is a slight difference between theoretical and practical. Some students also come by doing some kind of research. We see that students’ interest in insurance is increasing. Which is a pleasant subject. The insurance sector needs to capitalize on the enthusiasm and expectations of new and talented people.
Opportunity for those wishing to enter the insurance sector
Since insurance is the cornerstone of the nation’s financial system, the sector operates according to all rules and regulations. Nepal Insurance Authority (NEA) is the body that regulates the insurance sector by developing, promoting, advising the Government of Nepal on insurance and bringing insurance policies.
It is an area of stability and immense potential in various ways. Apart from this, insurance itself is also related to various subjects, so in order to enter this profession, first of all, one has to pay attention to your desire and purpose, while the insurance company has the following major departments and financial related functions are unlimited.
Sales: The main function of sales (marketing) is to understand the company’s products and identify customers accordingly and grow the company’s business. Having a direct relationship with the customer plays the first role in establishing the company’s brand in the insurance market. This is a suitable and attractive work area for those who have access to public relations.
Risk Assessment Department: has the right to accept the risk and reject the offer by placing coverage, insurance rate, conditions for providing insurance protection accordingly. Riskmaking is a sensitive task. The mistake of those working in that department can put a financial burden on the company and in some cases there may be legal hassles.
Claim management: is the payment of the insured’s claim quickly and fairly. This is an important department. The purpose of insurance is to pay the claim to the insured by properly evaluating the damage in case of damage to the insured property. Special attention is paid to the satisfaction of the insured.
Reinsurance: The insurance company acts to transfer risk through reinsurance to the risk above the risk it owns. This department spreads the risk to the national and international arena. Adequate analysis of financial and technical issues.
Human Resources: This department carries out all employee-related tasks, such as selecting, appointing, evaluating their work annually, tanning, making a succession plan, addressing their problems. It is also part of the department’s domain to discipline employees, make them positive and motivate them towards their work.
Information Technology: Most of the work of insurance companies is done through the core system. In this work, it plays an important role in facilitating procedural tasks through software, timely reporting. Apart from this, hardware, networks, websites are also included. As the insurance sector moves towards information technology and digitization, its scope seems to be increasing.
Finance Department: The department publishes and reports on the company’s income, expenditure, budget making, investment, taxation, various types of financial statements. Due to the practices being followed and being practiced by the insurance sector, disclosures in the financial statements of the insurer are now becoming more sophisticated and transparent than before. There is a need for technical manpower.
Law Department: The company needs a law department for internal or external issues, matters, and legal advice. It works to identify customers, money laundering, suspicious transaction related activities and inform the financial unit of the transaction. Detailed work is being done on this.
Any dispute in the insurance sector is legally resolved.
Department of Compliance: is followed by the Department of Compliance with the Act, laws, rules and internal guidelines. Accordingly, it works to submit the details to the regulatory body. Compliance takes note of the Code of Conduct. It involves recording the complaints of the customer and the insured, informing the concerned employee or department and resolving the matter.
Department of Internal Control: The role of this department is important. Whether the rules, policies, etc. adopted by the insurer under this department have been implemented or not. Performs errors seen in the operation of the insurer or methods to correct them and similar procedural tasks.
Risk management: transforms the challenges that come in the insurer’s business operations into opportunities, in the process identifying, evaluating, controlling various risks. Good governance and strong risk management will help in the development of insurers in the long run. This is a good opportunity in the insurance sector.
Actuary: When insurers define insurance as the future and insurance provides compensation in the event of a loss, the insurance company itself is not allowed to stand on the foundation of the future.
There is an understanding among the general public that insurance will compensate in case of damage to any property, which is correct. However, if there is no damage, there is no need to compensate. It is also thought that if the compensation is not paid, the insurer will benefit.
Although the insurer pays only the claim of the damaged, the liability of the loss or the non-claim will also have to be paid in the coming days due to the loss. The actuary is responsible for these and other similar provincial functions.
In conclusion, actuaries accurately measure the current and future analysis of the risk, liability, capital and solvency of the insurer and its consequences based on actuarial principles. This is very important for insurance companies.
Some of these above departments and functions may differ according to the company’s own policies and arrangements.
Service-facilities: in the insurance sector as per the prevailing rules and regulations, while the Insurance Authority of Nepal has made provision for a fixed amount of money for the professional development of the employees. The company itself arranges regular trainings and also involves its employees in national and international trainings and seminars. Insurers also conduct labor audits.
Area with insurance potential
Since insurance is an emerging sector, we see a very good future for it. As the country’s development and prosperity moves in a certain direction and the need for insurance is felt from it, it is possible to take full confidence that this sector will become more comprehensive.
In the context, some technical areas still do not seem to have thought about how to find a solution to the risk through insurance. For example, professional liability insurance is also one. This insurance is suitable for doctors, lawyers, accounts, etc.
While using their knowledge and expertise in the course of their professional roles, they sometimes make mistakes unknowingly, and this insurance of their negligence, errors and financial losses, legal obligations resulting from the emission provides compensation for that loss.
Recently, the consumer court’s decision to compensate the doctors and the hospital for ‘negligence of doctors’ in treatment had agitated all the doctors and many patients were affected by it. We have been witnessing that such incidents happen from time to time and have taken a violent turn.
It is not right for anyone to die due to negligence, but if someone dies while trying his best to do his professional duty with his ability and efficiency, and if it is considered negligent by the court, insurance can be arranged.
There are many areas where the utility of insurance is not considered. If these sectors are brought into the system of insurance, then everyone will not get unnecessary financial responsibility and professional respect will not be possible for everyone and those who have adopted such technical professions, and it is too late to consider this.
Opportunities and challenges of the insurance profession
There are both opportunities and challenges in any profession. The insurance profession itself is challenging. Each of the departments mentioned above has its own challenges, but how to turn them into opportunities to achieve success is determined by people’s thinking and what they do.
Honesty is a necessary quality. Of course, it is equally necessary in all professions. However, the insurance profession is more important because it is a temporary profession. Without honesty, you don’t know yourself and your abilities. And in this way, study and curiosity. Because risk is always dynamic and it is not easy to work in insurance if it is not dynamic with mobility.
Similarly, it is better to understand the needs of the customers, analyze the market trends, have knowledge about the rules and regulations, know the current information technology and technology, and work according to your wishes and goals among these above departments.
To understand insurance, it is felt that it takes a whole life to be proficient in it. My esteemed elders were working as distinguished and continuous active insurers for 45-48 years and we could easily answer all the questions when we asked questions. We knew them a lot. However, to quote them, it was heard that ‘of all the issues, I understand this matter a little better’. Have the practical challenges of insurance taught humility!!
In conclusion, the similarity found when a disciple evaluates the gurus is their passion and dedication to their work.
Specialty of the insurance profession
The form of risk or liability that insurance can afford is evolving in different ways, and with time new risks also emerge. In the past and now, the approach and method of evaluating risk has become different. The objectives and procedures of insurance have also changed drastically. Accordingly, insurance guidelines have been further revised and refined. Keeping in view the international practice, actions are being carried out accordingly. I myself have been associated with this profession for almost 30 years, so such changes in insurance and the challenges that are coming from time to time are exciting.
The main feature of insurance is complacency. Because during the loss of the insured, the insurance provides financial support in times of suffering and with this, he can continue his business again. They progress financially. They lead a dignified life in society. This is the specialty of the insurance profession.
At a time when the country is making a roadmap towards the faeces of ‘Prosperous Nepal’, its foundation is insurance and certainly the insurance profession itself is a glorious profession.
