Kathmandu. The Government of Nepal introduced the concept of micro insurance with the objective of ensuring the safety net of insurance to the poor, poor and extremely poor sections. Licenses were also issued to 7 micro-insurance companies by preparing a study report with the conclusion that access was not possible only through traditional insurers. <\/p>\n
According to the periodic statistics published by the Nepal Insurance Authority, the number of micro insurance companies has increased with the presence of micro insurers. In both, the average contribution of small insurers is higher than that of traditional insurers. <\/p>\n
Government of Nepal Fiscal Year 2078. In the budget speech of 1979, the insurer had announced a policy that at least 10 percent of the total business should be brought in from micro insurance. Despite this announcement, the contribution of micro insurance to the total business of the insurer is not even 5 percent. <\/p>\n
According to a report on micro insurance published by the authority, it is not clear whether the policy is still valid till August 2025. Traditional insurers were struggling to meet the 10 per cent limit before micro insurers came into existence in 2023. <\/p>\n
Insurers are seeking clarification on government policies. Is the 10 percent requirement still mandatory? Does this apply equally to microinsurers? Will implementation mechanisms be put in place to meet the 10 percent target? <\/p>\n
Regulatory uncertainty may be influencing strategic planning and product portfolio decisions throughout the decade. <\/p>\n
Lack of clarity in micro insurance directory<\/strong><\/span><\/p>\n A survey conducted by NEA has shown that most of the insurance companies are not clear about the provisions of Micro Insurance Directive 2023. Of the 13 companies that responded to the survey, including 8 conventional and 5 micro insurers, only 2 said the guidelines were “very clear”. Most said it was “only somewhat explicit.” <\/p>\n Insurers have complained that the micro insurance directive has posed challenges to the expansion of micro insurance. According to the report, the insurers have complained that the limit of the insured (Rs 5 lakh in the case of life insurer and Rs 50 lakh in the case of non-life insurer) is impractical in the case of micro insurance. In addition, there is a lack of clear pricing guidance. The premium rate has been fixed at the same rate for traditional insurers and micro insurers. This, they say, has made it difficult for micro insurance to expand. <\/p>\n Similarly, there is ambiguity in the guidelines regarding the partnership model between small life and non-life insurers. There is no clear provision in the directive regarding whether or not two licensed insurers can sell insurance policies through the same sales center. <\/p>\n Lack of incentive mechanism{<\/strong><\/span><\/p>\n }<\/p>\n Although the Insurance Act 2079 and National Insurance Policy 2080 have been implemented, the production development has been affected due to lack of clarity on the implementation level. <\/p>\n The report has suggested the NRA to provide clarity on the questions to be asked regularly regarding micro insurance through circulars and workshops. It has also recommended the introduction of a separate reporting model and the introduction of gender-based data collection.<\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. The Government of Nepal introduced the concept of micro insurance with the objective of ensuring the safety net of insurance to the poor, poor and extremely poor sections. Licenses were also issued to 7 micro-insurance companies by preparing a study report with the conclusion that access was not possible only through traditional insurers. According […]<\/p>\n","protected":false},"author":5,"featured_media":188551,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45149,45159],"tags":[],"class_list":["post-288997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-laghu-beema-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/288997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=288997"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/288997\/revisions"}],"predecessor-version":[{"id":288998,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/288997\/revisions\/288998"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/188551"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=288997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=288997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=288997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}