Kathmandu. A high-level economic reform suggestion committee formed by the government has suggested making arrangements for determining the premium of insurance in the market in a competitive manner.
In its final report submitted to Deputy Prime Minister and Finance Minister Bishnu Poudel, the high-level committee has made seven-point suggestions to increase the scope of insurance. One of the suggestions is to increase the scope of insurance by making arrangements for the premium fee of insurance to be determined competitively in the market, the report said. “All stakeholders should be involved in increasing insurance-related literacy and knowledge to increase access to insurance,” the report said. ’
Similarly, the report has also suggested that in the event that insurance companies have mobilized long-term financial instruments but do not have the appropriate financial tools for investment, arrangements should be made to issue infrastructure bonds for high-return infrastructure projects targeting insurance companies. “While approving the house construction map in urban areas, arrangements should be made to insure the house compulsorily,” the report states. ’
The report has suggested that a certain part of the reinsurance should be provided with foreign reinsurance companies to reduce the risk. “The Insurance Authority should set up an insurance academy in collaboration with insurance companies,” the report suggested, adding that the government should support the insurance authority to increase its autonomy, efficiency, capacity and good governance. ’
According to the report, it would be appropriate to make arrangements to provide agriculture and animal insurance subsidy from the local level and not from the federal level.
