Nepal Insurance Authority Chairman Announces Reforms for Sustainable Growth and Quality Services
Kathmandu — Chairman of the Nepal Insurance Authority, Sharad Ojha, has outlined a comprehensive action plan aimed at ensuring the sustainable development of Nepal’s insurance sector while enhancing service quality, transparency, and institutional efficiency.
Speaking at the 57th anniversary celebration of the Authority, Chairman Ojha said the institution is adopting a forward-looking approach, shifting from traditional practices to more systematic and modern methods. Key to this transformation is the implementation of risk-based supervision, under which high-risk insurers will face increased scrutiny while regulatory pressure on low-risk entities will be reduced. This model is expected to contribute significantly to strengthening the financial soundness of insurance companies.
Ojha acknowledged persistent challenges in the claims process, attributing delays and inefficiencies to weak underwriting practices. He stated that necessary corrective measures will be introduced to streamline claims and improve service delivery. Additionally, the Authority is preparing to launch a set of unified directives to replace the current scattered regulatory guidelines. The first draft is expected within the first week of Jestha, and the directives are scheduled to come into effect from Shrawan.
Institutional strengthening also features prominently in the Authority’s reform agenda. Plans include a review of the existing organizational structure, implementation of a new administrative framework through an ONM (Organization and Management) survey, and both domestic and international training programs to boost staff capacity. Currently, more than 160 employees are serving within the Authority.
To improve internal operations, a paperless office system is being pursued. Performance evaluations will be used to enhance service outcomes and ensure that insured individuals receive efficient and reliable services.
The Authority is also working to restructure the insurance mediation process. A new, dedicated branch will be established to manage mediation more systematically, replacing the current setup operated under the complaint division. Monthly publication of statistics and analytical reports is also planned to promote evidence-based decision-making and encourage analytical thinking within the sector.
Chairman Ojha highlighted ongoing efforts to expand insurance coverage in remote areas, including a pilot home insurance program in Karnali Province. Efforts are also underway to enhance the training and capacity of insurance agents across the country.
In terms of market innovation, the Authority is preparing the legal framework to introduce new insurance services, supported by initiatives like the recently launched wave aggregator system. Ojha stressed the need for insurance companies to develop new products, expand investment avenues beyond the current 11–12 options, and strengthen their internal capacity. Collaboration among all stakeholders, he noted, will be essential to build a more inclusive and resilient insurance ecosystem.