Kathmandu. KATHMANDU: The deadline given by the Nepal Insurance Authority (NIA) to foreign reinsurance brokers to open their offices in Nepal is about to expire.
The authority had set the deadline for setting up the office first time by Ashad 2082 and second time till Poush 2082 as per the provision of Reinsurance Directive, 2080 BS.
As per the directive, the foreign reinsurer should have opened its branch or contact office in Nepal within Chaitra 2081. As per the directive, the reinsurance insurer who has received the listing number from the Insurance Authority should establish a branch, contact or joint venture office in Nepal.
For the first time, on March 24, 2081, NEA had issued a directive to set up the office by June 24, 2081. Most of the foreign reinsurance broker companies did not operate joint venture companies, branches or contact offices in Nepal even after the directive from the authority. After that, the deadline was extended till December.
According to the NRA, the current fiscal year 2082. A total of 54 reinsurance brokerage companies are listed for 83 years. Only a few foreign reinsurance brokers including UIB and Synergy have set up offices in Nepal.
There is a provision that the NRA can deprive the reinsurance brokers from listing those who do not follow the directive to set up offices in Nepal. No foreign reinsurance broker company is allowed to operate reinsurance service in Nepal without approval from the authority.
