Nepal Insurance Authority Engages in High-Level Dialogue with Life Insurers, Urges Stronger Governance and Accountability
Kathmandu — The Nepal Insurance Authority (NIA) convened a high-level discussion with the chairpersons and directors of life insurance companies operating in Nepal, emphasizing the need for stronger governance, accountability, and proactive leadership in the sector.
The interaction, held in New Baneshwor, Kathmandu, was mandatory for all board-level representatives from both major and small life insurance companies. The meeting provided a platform for an open exchange of views on pressing regulatory, operational, and governance challenges within the life insurance industry.
Chairman of the Nepal Insurance Authority, Sharad Ojha, led the discussion and directed the boards of directors of all life insurers to actively fulfill their roles and responsibilities as outlined in the Insurance Act. He stated that the Insurance Authority acts as a facilitator.
He also further stressed that the board of directors holds the ultimate responsibility for company governance and performance. As such, he urged board members to be fully engaged, results-driven, and aware of their legal obligations.
During the dialogue, chairpersons and directors raised several key concerns affecting the industry. These included the difficulty in securing reinsurance abroad due to concerns over the safety of domestic reinsurance arrangements, inconsistency in income tax calculations, and the lack of diversification in investment avenues. Additionally, concerns were voiced about the strained coordination between company management and boards, with some directors alleging that management had misled board members on important issues.
Issues related to good governance were also brought to the fore. Participants questioned the excessively high salaries of some Chief Executive Officers (CEOs) and highlighted the Authority’s role in delaying actuarial valuation approvals and administrative decisions.
In response, Chairman Ojha announced that the Insurance Authority would soon establish a dedicated investment-related branch to better support insurance companies in navigating investment compliance and diversification. He reiterated the importance of collective effort from all stakeholders to uphold transparency, efficiency, and dignity in the insurance sector.
Sushil Dev Subedi, Executive Director of the Nepal Insurance Authority, delivered the welcome address at the outset of the event, setting the tone for constructive and solution-focused engagement.