Nepal Reinsurance Leadership Faces Scrutiny Over Foreign Employment Insurance Pool Decision
Kathmandu – The leadership of Nepal Reinsurance Company is under scrutiny following revelations that its chairman, CEO, and board members submitted a proposal to the Nepal Insurance Authority that could negatively impact their own company. Nepal Reinsurance Company, which has over NPR 5 billion in government investment, stands to incur significant financial losses due to this decision.
Chairman Dev Raj Dhungana, CEO Surendra Thapa, and board members Anita Rayamajhi, Nabaraj Mudwari, Madan Kharel, Dinuka Pokharel, and Dinesh Lal Shrestha reportedly approved a proposal to relinquish Nepal Reinsurance Company’s role as the fund manager of the Foreign Employment Insurance Pool. This move, expected to result in substantial annual revenue losses, has raised concerns about governance and accountability within the organization.
According to sources, the company formally wrote to the Nepal Insurance Authority, recommending that the role of fund manager for the insurance pool be transferred to a private insurance company for four years. The board’s decision to submit this proposal has sparked questions about internal oversight, as it remains unclear whether all members supported the move or if there were objections.
In response, the Nepal Insurance Authority amended its directives on February 18, ensuring that Nepal Reinsurance Company would not assume the fund manager role. Despite the significant financial implications, Chairman Dev Raj Dhungana has refrained from commenting on the matter. Meanwhile, CEO Surendra Thapa acknowledged discussions with the insurance authority but downplayed concerns, stating, “Someone had to lead; that is the meaning, nothing else.”
Furthermore, Chairman of the Nepal Insurance Authority, Madan Dahal, confirmed that the decision stemmed from Nepal Reinsurance Company’s own request. He stated that the company had proposed a system of rotational management for the insurance pool, effectively excluding itself from a leadership role for the time being.