Insurance Authority Seeks Industry Feedback to Strengthen Risk-Based Capital Framework
Kathmandu — The Nepal Insurance Authority has begun reviewing the implementation of the Risk-Based Capital (RBC) framework, two years after its rollout, as it prepares to refine the system based on industry feedback and practical experience.
To support the review process, the Authority organized an interaction program at its central office in Kupandol, bringing together representatives from life insurers, non-life insurers, and reinsurers to assess the framework’s implementation, exchange operational experiences, and discuss proposed regulatory revisions.
Addressing the event, Executive Director Sushil Dev Subedi said the transition to the RBC framework has progressed satisfactorily since its introduction. He urged insurers to provide practical recommendations based on the challenges and successes they have encountered during the two-year implementation period, emphasizing that such feedback would help shape the framework’s future direction.
Subedi added that the Authority intends to revise the existing RBC provisions in line with industry input, ensuring the regulatory framework remains practical, relevant, and responsive to evolving market conditions.
Director Dhruva Timilsina said the RBC regime would continue to evolve through continuous learning, evaluation, periodic reviews, and the adoption of international best practices, making the framework more effective over time.
During the program, Deputy Director Nirmala Malla presented a two-year assessment of the RBC framework and outlined key areas identified for revision. She said the Authority expects insurers to improve data quality, strengthen reporting systems, enhance actuarial capacity, foster a stronger risk management culture, reinforce enterprise risk management practices, and ensure the timely submission of regulatory reports.
Speaking on behalf of the industry, Prabin Raman Parajuli, President of the Life Insurers’ Association Nepal, thanked the regulator for incorporating several recommendations previously submitted by the association regarding the implementation of the RBC framework.
Participants also shared their experiences since the framework came into effect and raised questions on both the existing and proposed provisions of the RBC and solvency guidelines.
At the event, Statistician Basant Prasad Bohara announced that the Authority has begun publishing an annual statistical publication covering the country’s insurance sector. The inaugural edition, titled Insurance Statistical Year Book 2081/82, has already been released.
The program was attended by chief executive officers, heads of risk management, and designated RBC focal persons from life insurance companies, non-life insurance companies, and reinsurance companies.