Kathmandu, July 9
Chairman of the Nepal
Insurance Authority (NIA), Sharad Ojha on Tuesday, unveiled the Annual
Insurance Policy and Programme for the upcoming Fiscal Year 2025/26 for the
first time since its inception.
The insurance sector regulator
has launched the new Policy and Programme as a new initiative with the
objective of developing a competitive and trustworthy insurance system,
enhancing institutional governance in the sector.
At a press conference
organised by the Authority in Kathmandu, Ojha announced that the NIA will
formulate and implement its programmes and budget for the coming year in line
with the newly released policy and programme.
Highlighting that the policy
aims to guide the insurance sector towards a projected path of development, he said
that it clarifies the direction and initiatives the Authority will undertake
during the upcoming fiscal year. He further mentioned that insurance companies
will also be required to develop and implement their respective budgets and
programmes in accordance with this policy.
Executive Director of the NIA,
Sushil Dev Subedi, informed that the practice of introducing an annual policy
and programme has been initiated as a guiding document to propel the insurance
sector forward in a planned and predictable manner.
The policy and programme for
the upcoming year prioritise protecting the interests of policyholders,
expanding access to insurance, promoting financial stability through risk
transfer mechanisms, managing risks related to climate change and disasters, adopting
international best practices and research-based policymaking, and strengthening
the use of information technology and digitalisation.
The policy includes provisions
to make insurance services more accessible via digital payments and alternative
distribution channels, develop systems for easy dissemination of information on
policy terms and benefits, implement a ‘Transparency Dashboard’ among insurers
to enhance accountability, and introduce legal provisions for the protection of
policyholders' rights.
Likewise, it also outlines
measures to prioritise micro and agricultural insurance, extend coverage to
remote and geographically disadvantaged areas, collaborate with provincial and
local governments, the private sector, and other stakeholders for insurance
sector development, and prioritise insurance-related studies and research.
Furthermore, it includes plans
to integrate complaints and grievance mechanisms into digital platforms, revise
insurance documents and guidelines as needed, enhance anti-money laundering
efforts, and strengthen the regulatory capacity of the NIA by aligning with
international best practices.
Additional initiatives
outlined in the policy include developing policies and insurance products based
on research and policyholder needs, mandating insurers to design at least one
innovative insurance product, updating existing legal provisions concerning
investment and reinsurance, and developing legal structures that prioritise
climate risk management.
The policy and programme also
propose establishing an Insurance Information Centre and an Insurance
Development Fund, fostering a technology-friendly insurance environment,
developing a 'Regulatory Alert System' for effective coordination with insurers
and implementing a knowledge management system at the NIA.
In line with a risk-based
inspection approach, the NIA plans to strengthen supervision, monitoring, and
inspection mechanisms, revise legal frameworks for risk-based capital as
needed, conduct feasibility studies for risk-based premium calculation systems,
implement key performance indicators to conduct quarterly performance reviews
of insurers, and carry out necessary research on disaster risk reduction in the
insurance sector.
As envisioned by the Insurance
Act and regulations, the policy also includes provisions for insuring students
in government schools through the Insurance Development Fund, and launching
pilot insurance schemes to bring targeted groups and communities under coverage
using the same fund.
Published in The Rising Nepal daily on 10 July 2025.
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