Nepal Opens Door to Insurance Aggregator Companies, Stirring Debate Among Agents
Kathmandu — The Nepal Insurance Authority has formally paved the way for licensing insurance aggregator companies through newly framed regulations, marking a significant shift in the country’s insurance landscape. Though yet to be published in the Gazette, the move has already sparked growing concern among professional insurance agents who fear their role may be sidelined by digital intermediaries.
Insurance aggregators platforms that compare policies across multiple companies are defined in the new regulation as intermediaries aiding consumers in selecting suitable policies through comparative analysis. This model mirrors platforms like India’s PolicyBazaar, allowing customers to view, compare, and purchase insurance products from various providers via a single platform.
Once implemented, the provision will allow aggregators to operate as independent entities unlike agents, who are tied to specific companies. While this is being lauded by some for increasing consumer choice and accessibility, it has also triggered unease within the agent community.
The Professional Insurance Agents Association, led by President Kedar Ghimire, expressed concern over the long-term impact of this shift. He argued that despite not officially listing aggregators among issues directly impacting agents, their entry into the market threatens to blur traditional roles and reduce agents’ significance.
Nisha Chaulagain, an agent at National Life, echoed similar worries. She called for better digital upskilling of agents rather than introducing platforms that may replace them. “Unilateral changes without agent involvement can destabilize the profession,” she said.
Supporters of the move, however, believe aggregator companies could improve insurance literacy, enhance policy transparency, and foster market competitiveness. By providing unbiased comparisons, aggregators are expected to empower consumers while also aiding policy development through market research.