Insurance Authority Moves to Implement Budget Reforms, Holds Talks with Insurers and Reinsurers
Kathmandu — Nepal Insurance Authority (NIA) has begun consultations with insurance and reinsurance industry stakeholders to expedite the implementation of insurance-related measures announced in the government’s budget for fiscal year 2026/27.
The Authority on 30 June held discussions with representatives of the Nepal Insurers’ Association, the Life Insurers’ Association Nepal, Nepal Reinsurance Company, and other reinsurance companies to formulate a roadmap for implementing the new policy measures.
The meeting focused on accelerating the rollout of key budget provisions aimed at strengthening the country’s insurance sector. These include requiring at least 20 percent of the sum insured issued by Nepali insurers to be reinsured with Nepal Reinsurance Company, assigning Nepal Re to lead and manage the collective insurance fund for long-term insurance, and mandating that a fixed portion of reinsurance risks be ceded to foreign reinsurers to enhance risk diversification.
Other proposed measures include increasing the third-party motor insurance coverage limit to Rs 1 million, requiring vehicles to be equipped with accident-monitoring devices to improve road safety, making insurance compulsory for accidents, critical illnesses, and cargo transportation, and introducing mandatory insurance coverage as a prerequisite for building permit approvals in urban areas.
Participants at the meeting said the budget’s insurance-related initiatives would play a significant role in expanding insurance penetration and strengthening the industry’s long-term development.
Speaking at the discussion, NIA Executive Director Sushil Dev Subedi said the Authority would soon issue the necessary guidelines and regulatory framework to facilitate the implementation of the budget measures while providing any required policy support.
Representatives of the Nepal Insurers’ Association, the Life Insurers’ Association Nepal, and reinsurance companies pledged to work closely with the regulator to ensure the timely implementation of the government’s insurance reform agenda.