Kathmandu. The Nepal Insurance Authority (INSURANCE) has announced to prepare a new mortality table for life insurance. THE AUTHORITY fiscal year 2082. It has been announced to prepare a new death rate table in the annual policy and program of 83.
This is the first time that the AUTHORITY has formally addressed the issue related to revision of the death rate table.
In the recent past, Insurance Khabar had pressed the AUTHORITY for a new death rate table by publishing a news item titled ‘New death rate is not in the table, the work of the AUTHORITY is always limited to gossip’ even after 15 years on April 18, 2082.
When determining insurance charges for life insurance, the actuary also bases the mortality rate for the purpose of risk assessment. The mortality chart provides a basis for predicting the percentage of chances of death per 1,000 insured. In such a table, the probability of death is also classified on the basis of gender, geography, occupation, educational level, etc.
१२ वर्षपछि मृत्यु दर तालिका परिमार्जन गर्न पुनः तात्यो बीमा समिति
Based on the data, including the total number of insured in the past years, the number of insured deaths within the insurance period, what percentage of insured deaths per 100,000 people are estimated within a certain age group.
Nepal Insurance Authority (Insurance Committee) had released the death rate table for the first time in 2066 BS. Since then, the death rate table has not been revised even after 15 years.
The average life expectancy of Nepalis has increased significantly during this period. Apart from this, the number of deaths due to accidents, diseases and natural disasters has changed significantly.
In the absence of revision of the mortality schedule in Nepal, life insurers have had to estimate the risk associated with life insurance based on the mortality schedule beyond reality. This has a direct impact on the determination of the insurance rate.
नेपालीको औसत आयू ७१.३ वर्ष पुग्दा पनि जीवन बीमाका लागि महँगो शुल्क तिर्न बाध्य
The average life expectancy of Nepalis has increased significantly. According to the National Census 2078, the average age of Nepalis has reached 71.3 years. According to the National Census 2058, the average age of Nepalis was 60.4 years.
In neighbouring India, the mortality rate table 2015-17 has been in effect lately. Bangladesh has introduced a new death rate table 2015-18 from 2024.
मृत्युदर तालिका परिमार्जन गर्दै बीमा समिति, एक्चुरिको महंगो शुल्कले मूल्याङ्कन खर्चिलो
NeA had prepared to study the mortality table in collaboration with Tribhuvan University’s School of Mathematical Sciences to revise the mortality schedule in 2075 BS. For this, it also collected details of death claims from old insurers for the last 10 years. However, this effort was limited to collecting details. The new schedule was not ready.
Surya Prasad Silwal became the chairman of the Insurance Committee (now Nepal Insurance Authority) in 2077 BS. In July 2019, the insurance committee again did the same to revise the death rate schedule. In the star hotel, life insurers and insurers also participated in the interaction. However, it was limited to that.
Of late, there are human resources available within the country for the collection, processing and initial-level study research required to prepare the mortality table. Although the work of preparing the death rate table is a complex and technical task, it is possible to do its initial level work from domestic manpower, so the cost of preparing the schedule will be less than the situation of making the schedule completely by relying on foreign experts.
