Insurance Authority Tightens Rules with New Directive on Insurers’ Property Transactions

Kathmandu — The Nepal Insurance Authority has issued a new directive governing the purchase and sale of fixed assets by insurance companies. Under the 2025 directive, the authority has placed greater emphasis on technology-friendly record-keeping, as well as stronger institutional governance and oversight.

According to the directive, insurers must fully write off their pre-operating expenses and complete their first Annual General Meeting (AGM) after issuing shares to the public before they are allowed to purchase land and property for purposes other than office use.

In addition, companies must not have incurred losses for at least two consecutive fiscal years and must maintain a minimum solvency margin of 130%.

The directive also sets a cap, allowing insurers to invest in fixed assets only within 30% of their net worth.

Furthermore, if land or property purchased for investment purposes remains unused for five years, companies are required to submit a mandatory “sale plan” to the authority.

The rules also require insurers to inform the authority if they sell assets worth more than 10% of their net worth within a single fiscal year.