Kathmandu: Chair of Nepal Insurance Authority Sharad Ojha has said that it is necessary to strengthen the internal regulation and good governance of insurance institutions rather than regulation through intervention. Speaking at an interaction titled ‘Insurance Sector now’ organised by the Economic Media Association Nepal (EMAN) as part of a programme to felicitate newly appointed Chairman Ojha, he said regulatory steps would be taken to solve the problem based on the suggestions received from the stakeholders besides analyzing the contribution of the insurance sector.
According to National News Agency Nepal, Ojha emphasized that insurance companies should maintain their internal good governance and self-regulation to resolve underwriting issues, rather than relying solely on the regulator’s interventionist role. He assured that necessary regulatory interventions would be implemented, considering the sector’s contribution to nation-building. Ojha pledged to continue the good practices of the past and refine reform efforts.
Ojha highlighted that continuous discussions are being held and suggestions are being gathered from concerned bodies, including insurers, intermediaries, and surveyors’ associations, to improve the insurance sector. He stressed the need for initiatives from all sectors to strengthen the financial condition of insurance companies. He also mentioned that directives issued by the National Insurance Authority (NIA) in the past are being consolidated into an integrated form.
Insurance expert Dr. Rabindra Ghimire underscored the importance of maximizing the use of information technology to prepare skilled manpower in this sector. He advocated for collaboration with educational institutions, training centers, and research centers to produce skilled human resources. Ghimire also pointed out the issues of insurance companies insuring beyond their capacity due to unhealthy competition and emphasized the need to address money laundering concerns in the sector.