Leadership Vacuum Grips Nepal’s Insurance Industry as Six Companies Continue Without CEOs

Kathmandu — A growing leadership void is casting a shadow over Nepal’s insurance sector, with six insurers across the life, non-life, reinsurance and microinsurance segments continuing to operate without permanent chief executive officers.

The lack of executive leadership has started to affect routine business operations, prompting employees from some of the affected companies to seek the intervention of the Nepal Insurance Authority. Staff members say the issue has become increasingly urgent as insurers enter the fiscal year-end closing period, when major operational and financial decisions must be taken.

The Insurance Authority’s corporate governance guidelines allow companies to appoint a senior executive as acting CEO for a maximum of three months whenever the chief executive’s position falls vacant.

Several insurers, however, have allowed the temporary arrangement to persist far beyond that limit. In some cases, including Himalayan Reinsurance, the vacancy remains unfilled even on an interim basis, with no acting CEO appointed.

Under the Insurance Act, 2022, the responsibility for appointing a chief executive officer rests with the company’s board of directors. While this places primary accountability on the boards, the prolonged vacancies have also raised concerns about the regulator’s effectiveness in enforcing its own governance requirements.

The leadership gap comes at a time when the insurance industry is adapting to rapid technological change, developing new products and strengthening its approach to cyber and climate-related risks. Industry participants warn that the absence of permanent CEOs could delay strategic decisions, weaken corporate governance and slow business expansion.

Stakeholders also fear that prolonged uncertainty at the top could dent employee morale, undermine investor confidence and gradually erode policyholders’ trust in the industry.