Himalayan Reinsurance to Manage Foreign Employment Insurance Fund Under New Directive

Kathmandu — In a significant policy shift, the Nepal Insurance Authority has entrusted Himalayan Reinsurance with the exclusive management of the foreign employment term life insurance fund for the next four years. The decision marks a move toward centralized oversight and increased accountability in the handling of billions collected through migrant workers’ insurance premiums.

Previously, this fund was jointly overseen by the country’s two reinsurance companis. However, recent amendments to the directive governing foreign employment insurance have dissolved that joint management model in favor of a single-operator system.

The Authority’s new policy stems from Section 5 of the updated 2081 directive, which allows any approved reinsurance company to take sole charge of fund operations for up to four consecutive years. Following a joint consultation held on Falgun 4 (Feburary 16) with both companies, Himalayan Reinsurance was selected for the role by mutual agreement.

Alongside the appointment, the Authority has also introduced broader changes to insurance fund reporting protocols. Insurers are no longer required to deposit premiums immediately upon collection. Instead, companies must now submit a two-part statement: one covering the first 15 days of the month, due by the 16th, and the second covering the rest of the month, due by the first day of the following month.

Daily confirmation of premium receipts—a previously mandatory requirement has also been eased. Reinsurers will now rely on regular periodic verification, reducing bureaucratic pressure without compromising financial checks.