Kathmandu. The Nepal Insurance Authority (NEA) has prepared a draft for revising the guidelines related to the appointment of insurers. In view of the changing nature of risk with the expansion of the business of the insurer, nea is going to issue an integrated guideline with the amendment of the Guidelines on Actuarial Evaluation of Life Insurance Business 2077 to cover all types of insurers.
According to sources associated with the AUTHORITY, the proposed guidelines will also include necessary provisions regarding the appointment of insurers and actuarial evaluation for life insurers, non-life insurers and reinsurers. At present, only one insurer is working for each insurer, so from now on, each insurer will have to appoint another full-time manpower for actuarial analysis. The insurer, who will be appointed as a full-time employee, will work under the direction of the chief insurer. Those appointed to such responsibilities are going to be eligible to graduate in actuarial science and get membership from the Actuary Society.
The assistant insurer will be responsible for preparing, synthesizing, analyzing and submitting a report with his opinion to the chief insurer. The assistant insurer should be given at least 10 hours of subject training by the main insurer and developed as his assistant.
According to the proposed guidelines, the government will immediately direct the life insurance company and reinsurance company to appoint manpower. Similarly, in the case of non-life insurers, a period of one year will be provided, according to the draft guidelines.
Traditionally, till now, the insurer has been providing all the data of insurance transactions to foreign insurers, including new data of every financial year. Under this practice, foreign insurers have been preparing the actuarial assessment report as per the request of the insurer by analyzing the risk, profit, loss, etc. based on the data received from the insurer. Now the availability of in-house manpower will shorten the time to prepare the insurer evaluation report.
After the implementation of the new provision currently under discussion, the insurer will be able to analyze the income, profit and loss of each of its insurance portfolios in a short time. Such an analysis will make it easier for the insurer to decide whether to continue an insurance portfolio, modify it or close it with regulatory approval. The assistant insurer will give appropriate advice to the management of the insurer regarding the basis rate of insurance fee, the cost burden inherent in the policy, the level of financial risk, the area where the insurer has to invest, etc.
At present, Tribhuvan University is teaching actuarial science under mathematics science in Nepal. According to the NRA, 25 occupanies have been produced in Nepal since tu started teaching, so it would not be difficult for the insurers to manage the human resources.
