Kathmandu. Nepal has taken important steps to promote inclusive insurance by implementing the Insurance Act 2079 BS. This Act includes the provision of establishing a small insurance company.
Nepal Insurance Authority (NEA) has also issued micro insurance guidelines on the basis of the Act. In this way, acts and guidelines have been implemented to expand the benefits of micro insurance on a policy basis. Experts in the insurance sector say that the spread of insurance is not possible only through policy arrangements and there is a need to develop it in a more comprehensive way.
The report titled ‘Inclusive Insurance and Risk Finance in Nepal: Status and Future 2024’ published by UNDP Insurance and Risk Finance Facility under the United Nations Development Mission has included the steps to be taken for the expansion of micro insurance in Nepal.
##inline_tags_PLACEHOLDER_7#improvement in #नियमन and production
The NIA is preparing to issue detailed micro insurance guidelines soon. This will affect nepal’s small insurance market in the long run. Recent non-life insurance policies did not achieve the desired success. Therefore, it is necessary to study it and improve it according to the suggestions of the customer. Agricultural insurance should be planned to learn from international examples in particular and utilize government subsidies.
#inline_tags_PLACEHOLDER_7##वितरण Channel Expansioninline_tags_PLACEHOLDER_9#
Alternatives such as digital platforms, cooperatives and local governments for the distribution of micro insurance are yet to be fully utilized. At present, banks and financial institutions are allowed to sell only loan-related insurance. Which has limited the spread of micro insurance. To improve this, it is necessary to open the bancassurance channel and maintain regulatory protection.
क्षमता Growth and Regulation#
The NIA has implemented a risk-based capital and oversight system. However, it needs to be made especially favorable for micro insurance. In addition, there is a lack of training on micro insurance required for the production of skilled manpower for insurance companies. For this, arrangements will be made to share international experiences with the insurance workers of Nepal.
#inline_tags_PLACEHOLDER_7##ग्राहक Demand and Focus on Actuarial Capacity##
Insurance awareness among poor and vulnerable groups is low. To improve this, research should be established and market research should be done. Also, there is a shortage of insurance experts in Nepal. For this, programs such as training, mentorship and the UNDP Milliman Global Actuary Initiative should be worked together.
##inline_tags_PLACEHOLDER_7#Development of #प्रकोप Risk Finance
The government has also focused on disaster risk finance. The UN Development Agency plans to standardize the guidelines of the Disaster Management Fund at the local level, develop risk control plans at the municipal level and assist in risk assessment.
#inline_tags_PLACEHOLDER_7##भावी expectation#
In coordination with regulators, insurance companies and development partners, Nepal’s small insurance sector can become inclusive, flexible and customer-centric. The upcoming comprehensive micro insurance guidelines will play a historic role in the development of this sector.
