Kathmandu. Biratnagar: A one-day seminar on contemporary issues related to risk management and insurance was held in Biratnagar on Saturday.
A total of 160 employees from life insurance, life insurance and small insurance companies participated in the program organized by Nepal Insurance Research and Management Association (NIRMA) in collaboration with Nepal Insurance Professional Society (NIPS).
Nepal Insurance Authority(NEA) Koshi Province Chief Binod Pokharel, NIRMA Chairman Dr Rabindra Ghimire and NIPS Koshi Province Chair Khadga Bahadur Shrestha jointly participated in the programme. Nips Vice President Pradeep Babu Tiwari delivered the welcome speech while Programme Operation Secretary Prakash Pokharel delivered the welcome address.
Central member of Nepal Insurance Surveyors Association Om Prakash Rathi, as the guest of honour, pointed out the need for ethics and regular training in the insurance business and stressed the need for insurance employees and surveyors to imbibe up-to-date knowledge and professional conduct. Damodar Bhandari, Assistant CHIEF Executive Officer of Nepal Reinsurance Company, said that such trainings would play an important role in enhancing the quality of business, reducing moral hazards and strengthening the credibility of the company.
The main objectives of the program included providing advanced training on insurance theory, underwriting, claims management, reinsurance and current risk management methods, teaching modern risk analysis and fraud control techniques, sharing international practices, creating an environment for research and discussion in the insurance sector.
Five sessions were held in the seminar. Dr Ghimire made a presentation on contemporary issues related to risk management and insurance sector. He stressed on the ethical problems prevailing in the insurance sector, the need for improvement in the service level and ways to make the insurance industry credible in Nepal.
Stating that the employees of insurance companies should maintain high honesty, transparency and up-to-date knowledge, Ghimire said that it was the responsibility of all to make the insurance industry socially recognized. At the same time, he stressed the importance of continuous learning, saying that the role of employees is important in purifying the insurance business.
Insurance expert Binod Kumar Pokharel gave a detailed presentation on corporate good governance and legal provisions related to insurance. He talked about the rights, duties and penal provisions of employees, management and board members as per the Insurance Act and Regulations. Reminding that the insurance policy should be issued after checking the rate rate and deposit slip while issuing the insurance policy, he said that every employee should bear equal responsibility in the implementation of the rules. He said that only corporate good governance can make insurance companies sustainable.
Ishwor Pradhan, Chief Manager of Nepal Reinsurance Company, made a presentation on claim management and reinsurance underwriting practices. He stressed the need for proper underwriting process while accepting risk and truthfulness testing should be mandatory while claiming claims. Stating that disciplined claim management was necessary to keep the insurance business safe, he warned to stop fraudulent claims.
According to him, insurance companies can maintain their long-term stability through strong practices of reinsurance business.
Insurance and risk management expert Udayraj Adhikari expressed his views on risk management and problems in the insurance sector in the context of Nepal. He pointed out the need for coordination and improvement among insurance companies in Nepal in risk identification, assessment and mitigation. He said that the employees of the insurance company should play the role of risk advisors and not just sellers and improve transparency and professional conduct to win the trust of the customers.
Insurance expert Narayan Kumar Bhattarai presented in detail the existing problems in life insurance. He talked about the problem of premature cancellation of insurance policy, low returns, unhealthy competition, inadequate training, regulatory instability, fraudulent activities and internal weaknesses.
He also clarified that premium will be determined on the basis of risk definition, risk management measures and risk grouping in life insurance and mortality rate.
On behalf of the participants, two reviewed the program and said that such training, seminars need to be done regularly and this program will be very beneficial for them. They requested Nirma to conduct long-term training on more intensive subjects in the coming days.
Certificates were also distributed to the participants.
