Kathmandu — The Nepal Insurance Authority has revised the Reinsurance Directive for Insurers, 2023 after foreign reinsurance brokers failed to establish branch offices in the country.

The Authority had earlier amended the directive in August 2025, requiring brokers to open branch offices by mid-January 2026. However, with more than a year passing and little progress made, the deadline has now been extended again to mid-July 2026.

Nearly two years have passed since foreign reinsurance brokers were first instructed to set up offices in Nepal, but many have still not complied. In response, the Authority has granted additional time through a fresh amendment to the directive.

Despite clear provisions requiring foreign brokers to establish an office within a specified timeframe, compliance has remained weak. Even after the previous extension to January 2026, only around half a dozen companies out of roughly 50 registered reinsurance broker firms have set up branch offices in Nepal.

The directive requires all brokers listed with the Authority to establish a joint venture company, branch, or liaison office within six months of registration. However, most foreign firms have yet to meet this requirement.

According to the Authority, it has issued multiple notices with deadlines to these companies, but has received little to no response. Although about 50 broker firms are currently registered, only a small number showed interest even by the second deadline. As a result, the Authority has now extended the timeline by an additional four months.