The draft guidelines for insurance appointment is prepared and will be implemented from mid of June after receiving feedback

Kathmandu : The Nepal Insurance Authority has prepared a draft of the guidelines 2080 B.S regarding insurance appointment. )According to Ram Koju, the deputy director of the authority, Nepal Insurance Authority has prepared the draft of this guideline by using the authority provided by Section 166 of the Insurance Act 2022 A.D(2079 B.S).

A draft of the guidelines on the role of actuary to be appointed by insurance companies has been prepared and the authority has also requested insurers, investors, general public and related bodies to give suggestions on the draft.

This guideline will be implemented by the Insurance Authority from Mid of June, 2024 A.D (1st of Asar, 2081 A.D).

Actuarial valuation is the accounting of the financial position of the insurance company and the assessment of liabilities. It is enough to audit other companies. However, since they have to work in the area of ​​risk, the insurance company must do actuarial evaluation. According to past data, the insurance company has to do things like determining possible risks, making new insurance plans and determining bonus rates for the insured.

But in Nepal, due to the lack of such manpower, insurance companies have been conducting such evaluations through foreign insurance companies. The companies also say that when such evaluation is done through foreign insurance, it is not timely. Also, the companies say that even the annual general meeting could not be held on time.

According to the draft prepared by the authority, insurance companies must appoint an actuary. Provisions have been included in the draft to appoint a peer review actuary for insurance companies to take necessary advice for conducting insurance transactions.

Institute of Faculty of Actuaries UK, Institute of Faculty of Actuaries India, Society of Actuaries America, Casualty Actuarial Society, Canadian Institute of Actuaries, Institute of Actuaries Australia and other world-renowned insurance companies are included in the draft where they can have appointment in order to prepare actuary. There is a provision that an actuary should be working in only one company.

For example, an actuary appointed in Nepal Life should not be in National Life.

Draft Guidelines 2080 B.S on Insurance Appointments,