Kathmandu, Nov. 12
The Nepal Insurance Authority (NIA) and Nabil Bank
Limited signed an agreement on Tuesday for API integration to automate the
earmark system.
API
(Application Programming Interface) integration is the process of connecting
different software systems or applications so they can communicate, share data,
and perform functions automatically without manual input.
The agreement was signed by Executive Director of
the NIA, Sushil Dev Subedi, and Chief Marketing Officer of Nabil Bank, Niraj
Sharma, on Tuesday, informed the Authority in a statement.
According to Subedi, the agreement will make a
significant contribution towards fully automating the earmark system in the
insurance sector. He added that this initiative will help make the investment
process of insurers faster, more efficient, and error-free, thereby enhancing
the effectiveness and transparency of insurance regulation and supervision.
Under the API integration, the management of
earmarked investments made by insurers in fixed deposits will be made easier,
safer, and more reliable through the use of technology.
The new system will automatically authenticate block
and unblock requests sent from the NIA to the bank, approving only those
requests with accurate details. In case of incorrect information, the system
will automatically return the request to the insurer through the earmark
platform.
For this integration, a special middleware has been
developed by Nabil Bank, which provides direct access to the bank’s core
banking system for fixed deposit details received from insurers via the
Authority.
The system will automatically implement a process
that accepts only correct information and rejects erroneous entries.
“This agreement marks another significant step in
the NIA's journey towards digital transformation and technology-friendly
regulation. It is expected to make a notable contribution to improving
efficiency, transparency, and timely service delivery in the insurance sector,”
read the statement.
Published in The Rising Nepal daily on 13 November 2025.
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