Insurance Information Center to Be Established, Based on CIB Model

Kathmandu — The Government of Nepal is preparing to establish an Insurance Information Center (IIC) in a bid to enhance transparency and reduce fraud in the insurance sector. The center will be modelled after the Credit Information Bureau Nepal (CIB), which monitors loan defaulters in the banking industry.

The legal basis for the IIC has been included in the newly drafted Insurance Regulations, which are awaiting publication in the Gazette. Once in effect, the Nepal Insurance Authority (NIA) will initiate the formal process of setting up the center. The NIA, along with insurance companies, will jointly hold ownership of the IIC.

Designed as a central hub, the Insurance Information Center will collect, store, and share data on fraudulent activities and actors across all insurance companies. The system will blacklist individuals and organizations involved in fraud, forgery, and other insurance-related crimes. Those blacklisted will be barred from accessing further insurance services.

In addition, the center will maintain a suspect list of policyholders engaged in unusual or suspicious insurance behavior. These individuals may also face restrictions when seeking new policies or services.

Until now, insurance fraud records were limited to individual companies and the regulator. This lack of a unified system allowed offenders to exploit other insurers undetected. The IIC will address this gap by providing all companies with access to a shared database of blacklisted and suspicious parties.

The Insurance Authority has held discussions with key stakeholders, including the Insurance Agents Association, Surveyors Association, Life Insurance Association Nepal, and Nepal Insurers’Association, to gather input on the model. The IIC is also expected to provide a single-window platform for complaint resolution, streamlining how grievances are addressed within the sector.