Authority Chairman Silwal’s Warning to Insurance Companies that have Gone into Merger

Kathmandu : Nepal Insurance Authority has discussed with the CEOs of insurance companies that have gone for merger on 1st of November. In that discussion, Surya Prasad Silwal, Chairman of Nepal Insurance Authority, said that the tendency of insurance companies that have gone to mergers to always look for convenience has increased, and warned that if they still fail to show results, they will take action without an agreement.

The regulatory Nepal Insurance Authority conducted a post-merger review with the insurance companies that went into the merger. In that discussion, the insurance companies demanded that facilities be provided as they were having difficulties in adjusting the staff. Similarly, due to the delay in preparing the financial statements, the regulator demanded more concessions.

Even after a year of merger, instead of solving the problem and showing results, the situation became more miserable. Silwal, the chairman of Regulatory Insurance Authority, gave a strong response and said, “The merged companies cannot always be taken care because it is poor, now they have to show result”.

Chairman of the authority, Silwal said that the institutional governance in the insurance sector is weak due to the trend of taking years to prepare financial statements, and said that the authority will not compromise on such matters.Chairman Silwal said that the companies involved in the merger cannot always say that they will give this discount or that discount.

He has requested that the companies which have gone through the merger still ask for discounts even after a year and a half, and not to seek privilege by giving different reasons.

CEOs of the insurance companies that went into the merger after Chairman Silwal’s warning appeared soft. On the other hand, some CEOs have started to get panic. The issue of tax evasion in some insurance companies is becoming very complicated. According to the sources, the Insurance Authority is preparing to take new actions to prevent the spread of distortions in insurance companies that have gone to merger.

The Discussion program was organized to listen to the companies that went through the merger and review the problems.

The discussion program was attended by the Chairman, CEO and high level employees of Non-Life Insurance Company and Life Insurance Company. All of them spoke openly about their company’s problems. Most of them expressed the intention that they were offered a special discount during the merger and now they are reluctant to give the discount.