Nepal Insurers’ Association Urges Regulator Over Pending Reinsurance Payments

Kathmandu – The Nepal Insurance Association has formally written to the Nepal Insurance Authority, raising concerns over delays in claim settlements by the two reinsurance companies operating in the country.

According to the association, insurance companies are facing financial strain as Nepal Reinsurance Company and Himalayan Reinsurance Company have withheld amounts due for claim payments. Insurers say the situation has affected their liquidity and their ability to settle claims with clients.

Regulations require reinsurers to clear accounts within 15 days of the end of every third quarter. However, some insurers allege that these payments have not been made on time. According to a senior official from one of the affected companies, the non-cooperation of reinsurers in settling claims—particularly those related to hydropower and other sectors, has created payment backlogs.

“In the absence of timely settlements, we were compelled to seek the intervention of the regulator,” the official said.

The association, in its letter to the authority, has emphasized the need for immediate regulatory action to ensure compliance and safeguard the financial stability of the insurance industry.