Insurance Agents to Protest Against New Insurance Regulations

Kathmandu – The Professional Insurance Agents Association Nepal has strongly opposed the newly issued Insurance Regulations, arguing that they curtail the rights of insurance agents and discourage their profession. The association held a press conference in Kathmandu on February 21, expressing concerns over provisions that they claim make it more difficult for agents to operate effectively.

The newly approved regulations are expected to significantly reduce the number of insurance agents, currently over 100,000, to nearly a quarter. Over the past three years, the number of insurance agents has been steadily declining, and industry professionals argue that these new provisions will accelerate that trend, negatively impacting the life insurance sector.

Kedarnath Adhikari, President of the Professional Insurance Agents Association Nepal, criticized the regulations for imposing stricter conditions on agents, particularly concerning the renewal of insurance policies they have facilitated. He stated, “Instead of easing the work of agents, the new regulations have made it even more challenging, especially when insured individuals fail to renew their policies.”

According to the association, the regulations have significantly reduced incentives for agents by lowering commission rates on policy renewals. The association strongly condemned this provision, calling it an unfair burden on agents who play a crucial role in expanding insurance coverage. President Adhikari has further announced that the association is planning protests and sit-ins in the coming days, demanding amendments to the regulations.

Om KC, General Secretary of the Professional Insurance Agents Association, claimed that the regulations would destroy the livelihood of over 100,000 insurance agents across Nepal. He stressed the need for immediate amendments and warned of potential protests if changes are not made before publication in the gazette. Ganesh Adhikari, President of the Nepal Life Insurance Agents Association, also warned of large-scale protests, including a possible mobilization of 50,000 agents in Kathmandu.

One of the most contentious provisions in the new regulations mandates that an insurance agent’s license renewal is contingent on the renewal rate of insurance policies they issued. Additionally, agents are held responsible for the premium payments of their clients—an unprecedented and legally questionable requirement. Critics argue that this rule could lead to mass revocations of licenses.

Another provision grants a 50% commission discount to policyholders who purchase insurance directly from companies, which agents believe will erode trust in their profession and diminish their role. With nearly all insurance policies in Nepal currently facilitated through agents, this move is seen as a direct threat to their livelihood.