Kathmandu. The Nepal Insurance Authority (NEA) has amended the reinsurance directive of the insurer instead of taking action against the reinsurance brokers.
The directive issued by NEA on May 22, 2080 BS had made provision for the establishment of a joint venture, branch or contact office within six months of the listing of the NEA. After foreign reinsurance brokers showed no interest in operating the office even when the deadline was approaching, the NEA had issued the first amendment to the directive on August 22, 2082 and extended the deadline till mid-January 2082.
Most of the reinsurance broker companies have not brought their offices into operation even after the extended deadline. They have completely ignored the directive of the Authority regarding the establishment of the office.
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As per the details published on the NRA’s website, there are a total of 16 reinsurance broker companies operating in Nepal. Among them, 10 are domestic and the rest are foreign. A total of 54 foreign reinsurance brokers have been enlisted in the NEA.
There is a situation where the Authority has implemented the provision to bring the office into operation before the listing of foreign reinsurance brokers. As an alternative, foreign reinsurance brokers who want to serve Nepal without opening an office will be pressured to operate if they are able to implement a provision related to adequate collateral or high listing fees.
