- Manoj Dhaurali
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The Nepal Disaster Risk Reduction and Management Act, 2074 (2017) recognizes Nepal as one of the most vulnerable countries to multiple disasters such as floods, landslides, earthquakes, fires, lightning, glacial lake outbursts, and droughts. According to a report by the United Nations Development Programme (UNDP), it ranks 11th in earthquake risk and fourth in terms of climate change risk.
Every year, a large number of people and property are lost due to seismic risk, geographical structure and poor topography, monsoon rains and water-induced disasters, climate change, unplanned urbanization and settlements, deforestation, mob riots, strikes and malicious acts, and limited preparedness. Therefore, non-life insurance is a financial safety net that helps to reduce the financial risk of the insured by protecting the insured property.
It is certain that the current gap in the insurance market will persist in the context of the non-life insurance companies of Nepal providing traditional insurance services in the traditional working style. Since the government of Nepal has classified the insurance service as an essential service and it is also seen as indispensable from the point of view of reducing financial risk, there can be no doubt that the insurance sector will take a leap forward due to the modern development, promotion and technology-friendly insurance sector by providing an opportunity to the youth to learn its technical knowledge. Therefore, it is imperative for non-life insurance companies to establish an incubation center with the basic concept of learning and learning program by involving young manpower in insurance companies.
The main concept of the earning learning program is to develop the skills, employability and entrepreneurship of the youth by providing them with the opportunity for basic practical work along with study and training. This program provides a golden opportunity to the youths to gradually develop their professional skills while contributing to income generation in addition to real work experience.
The relevance of establishing a non-life insurance incubation center and conducting an ‘Earn and Learn’ program aimed at the youth is evident in the following points:
Skilled manpower development in the insurance sector
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Since insurance is a highly technical subject, the incubation center can produce skilled manpower by imparting training to the youth in insurance marketing, insurance risking, reinsurance management, claim management, risk assessment, data analysis, digital insurance services and customer service. If the young workforce can be connected to this incubation center through the ‘Learn and Earn’ program, it will help to strengthen the company’s employee successor plan by helping to prevent the outflow of skilled manpower along with the sustainable and modern transformation, development and expansion of the insurance sector.
Practical Experience through ‘Learn & Earn’
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Practical experience is needed to put bookish knowledge into practice and face real-life challenges and make the right decisions. Under this program, the participating youths get an opportunity to work in an insurance company or related organization along with their studies. It gives them real work experience, knowledge of the insurance market, an opportunity to earn income and brings more clarity to their book knowledge. This type of program significantly increases the employability of the youth. Practical experience in the insurance sector transforms the theoretical knowledge of ‘what to do’ into practical knowledge of ‘how to do it’. These are essential elements for both personality development and employment.
Youth Entrepreneurship Promotion
The incubation center will help the youth to develop new business concepts based on the insurance sector. This motivates the youth to become not only job seekers but also job creators. Incubation centers will help to transform the traditional working style of the insurance sector and adopt a technology-centric approach.
Insurance Awareness and Financial Literacy Expansion
There are still limitations of insurance information and awareness in Nepal and the lack of insurance awareness and financial literacy is the root cause of the existing insurance gap. Youths can be trained and mobilized as insurance ambassadors. This helps expand access to insurance by further highlighting the need for insurance at the community level. In view of the high active social media of the younger generation in the present time, there is ample potential to spread insurance awareness and financial literacy by using social media as an effective medium.
Promoting Technology and Innovation
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The incubation center can develop digital insurance, mobile insurance services, data analytics and insurtech solutions as young people are proficient in technology. This will help make the insurance industry modern and competitive. Connecting young human resources to the insurance sector will help in making the insurance service more refined and result-oriented by bridging the gap between the insurance company and the insured through digital medium.
Employment and Self-Sufficiency Growth
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Youth unemployment is a major challenge in Nepal. The program will help the youths to become financially self-reliant by providing them with training, internship, employment and other career development guidance. It further highlights the involvement and needs of the youth at a time when opportunities are being created on the latest topics such as risk modeling, actuarial analysis, risk based capital, on risk and solvency assessment under risk management in the insurance sector.
Sustainable Development of Insurance Industry
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The young manpower trained through the incubation center brings new thinking, innovation and efficiency in the insurance industry. This will help in the development, expansion and competitiveness of the non-life insurance sector in the long run. The transfer of knowledge, skills and experience related to insurance from experienced employees and experts in a structured and systematic manner will increase the attraction and participation of the new generation towards the insurance sector and contribute significantly to the modernization and sustainable development of this sector.
Conclusion
Establishing a non-life insurance incubation center targeting the youth under the ‘Earn and Learn’ program will be a very relevant step for developing skilled human resources, promoting youth entrepreneurship, expanding financial literacy and creating employment in the insurance sector in Nepal as well as positive impact on the overall economy and will contribute significantly to the modern development, promotion, technology-friendly and sustainable transformation of the insurance industry. It can.
(The author is working with Dhaurali Siddhartha Premier Insurance) )
