Government Hands Foreign Employment Insurance Pool to Nepal Re, Ending Himalayan Re’s 16-Month Tenure

Kathmandu — The government has brought an early end to Himalayan Reinsurance’s management of the Foreign Employment Insurance Pool, awarding the responsibility instead to the state-owned Nepal Reinsurance Company as part of its policy to strengthen public-sector enterprises.

The transfer will take effect on July 17, following a circular issued by the Nepal Insurance Authority directing insurers to hand over management of the pool to Nepal Re.

The move puts into effect a budget provision introduced by the government, which called for the pool to be managed by Nepal Re. The regulator has now formally operationalized that decision.

Himalayan Reinsurance had assumed responsibility for the pool in mid-February 2025, after the Insurance Authority revised its operating directive. The amendment replaced the previous joint-management model with a rotational system, under which Himalayan Re was to oversee the pool for the first four years, followed by Nepal Re for the next four.

That arrangement, however, has now been superseded by the government’s latest policy, cutting short Himalayan Re’s tenure after just 16 months.

Before the regulatory amendment, the Foreign Employment Insurance Pool had been jointly administered by Nepal Re and Himalayan Re.

The Insurance Authority introduced the pooling mechanism to address growing distortions in the foreign employment insurance market, where insurers had begun competing aggressively by offering cash-back incentives and other inducements to policyholders. By centralizing the business under a common pool, the regulator aimed to eliminate unhealthy competition, standardize market practices, and ensure a more sustainable insurance framework.