Insurance sector regulation is weak; reforms are needed: Ministry of Finance

Kathmandu — The Ministry of Finance has acknowledged that regulation of the insurance sector is weak. Through its current economic report, the ministry has pointed out that comprehensive reforms are necessary due to the lax regulation of the insurance business.

The ministry also stated that, on one hand, fraudulent insurance claims and payment practices must be controlled, while on the other hand, the scope of insurance services should be expanded to improve risk management and mobilize long-term capital.

It further noted that insurance companies established with government investment are institutionally weak in terms of financial and managerial capacity.

The ministry mentioned that the scope of insurance services is gradually expanding. According to the current economic report, the coverage of insurance services has been increasing.

At present, Nepal’s insurance sector includes a total of 37 companies: 14 life insurance, 14 non-life insurance, 7 microinsurance, and 2 reinsurance companies.

The ministry reported that insurance coverage has reached 49.92% as of mid-March 2026.