Kathmandu. The insurance regulator needs to do a lot of reform work for the development and expansion of the insurance market in Nepal. As the authority’s own data shows that only 43 percent of the population is covered by insurance, the newly appointed chairman Sharad Ojha will have to face many challenges in the development and expansion of the insurance market. Experts who have been familiar with the insurance sector in Nepal for a long time say that he can use his tenure as an opportunity by addressing these challenges.
In the opinion of the outgoing chairman of the authority, Surya Prasad Silwal, the newly appointed chairman should study the insurance market of Nepal thoroughly and move forward. ‘There is a lot of work to be done in the development and expansion of our insurance market, and he will have to face many challenges to do that,’ he said.
Silwal said that the new chairman should take forward the work that can be done in Nepal by looking at international practices and the market. ‘We should introduce new insurance products in a timely manner,’ he said. ‘For this, it is easier to move forward by consulting and suggesting with the concerned bodies.’
Chiranjivi Chapagain, former chairman of the then Insurance Committee, said that the newly appointed chairman of the Authority should prioritize the work of bringing insurance companies under good governance. ‘The data on insurance policy surrenders has been increasing recently due to companies not being in good governance, so he should focus on bringing companies to good governance,’ he said. Chapagain said that insurance is still not reaching the lower classes. ‘For this, the newly appointed chairman should coordinate with micro-insurance companies and microfinance institutions to provide insurance to such classes,’ he said, ‘He should emphasize the expansion and development of the insurance market.’
Fatta Bahadur KC, former chairman of the then Insurance Committee, said that the new chairman should prioritize the work of expanding the insurance market. ‘For this, insurance awareness programs should be carried out, starting from bringing appropriate insurance policies for the target group,’ he said. KC said that the new chairman should also adopt a strategy to advance international insurance standards in Nepal based on their suitability. ‘He should continue to do activities that will increase the contribution of insurance to the economy,’ he said, ‘and we expect the same from him.’
Noting that there is a shortage of qualified manpower in Nepal’s insurance market, KC suggested that the new chairman should pay special attention to filling the vacancies. ‘He is young, he has come here to work. Therefore, we expect that he will also take his tenure as an opportunity to develop the insurance sector,’ he said.
Former Executive Director of the Insurance Authority, Rajuraman Poudel, said that the newly appointed chairman Ojha should focus on the reach and expansion of insurance. ‘His background is in the field of journalism. He may be aware of the situation of insurance in Nepal,’ he said, ‘The government still does not understand insurance. He should play a role in explaining insurance to the government at all levels during his tenure.’ Another thing, Poudel said, is that the state of good governance in insurance companies is still not strong. ‘The newly appointed chairman should move forward in a planned manner to bring the companies under good governance,’ he said.
Poudel said that a policy should be adopted to provide access to insurance to the lower class people. ‘The insurance regulations have just come out, now he should work on developing the insurance sector by making procedures,’ he said.
Insurance expert Ravindra Ghimire said that the newly appointed chairman of the Insurance Authority has both challenges and opportunities. ‘There is still a lot of work to be done in the insurance sector, so he has an opportunity to work,’ he said. Ghimire said that the authority should build a good risk management mechanism. He suggested that the newly appointed chairman should take the initiative in this regard under his leadership. ‘He should emphasize on the production of human resources along with the development of technology. Separate technical colleges should be established to produce skilled human resources,’ he said.
Ghimire also said that since more than 25 percent of the population in Nepal is below the poverty line, the new chairman can play a role in bringing such people under the insurance umbrella. ‘The challenge before him is to settle the issue of Corona insurance,’ he said. Ghimire said that the new chairman also has the important responsibility of maintaining good governance within the authority and in insurance companies.
