KATHMANDU: Sharad Ojha, Chair of the Nepal Insurance Authority, has emphasized the importance of strengthening the internal regulation and good governance of insurance institutions, rather than relying solely on regulatory intervention.
Speaking at an interaction titled ‘Insurance Sector Now’, organized by the Economic Media Association Nepal (EMAN) as part of a program to felicitate the newly appointed Chairman, Ojha stated that regulatory actions would be taken to address issues based on suggestions from stakeholders, along with an analysis of the insurance sector’s contributions.
“Insurance companies must prioritize maintaining internal governance and self-regulation to address issues such as underwriting challenges, rather than relying solely on the regulator’s intervention. We will implement necessary regulatory measures, taking into account the sector’s contribution to national development,” Ojha added.
He pledged to continue the good practices from the past while refining and making reform efforts more systematic.
Ojha also noted that continuous discussions are being held with relevant bodies, including insurers, intermediaries, and surveyors’ associations, to improve the insurance sector. He highlighted the need for collective action from all sectors to strengthen the financial health of insurance companies.
The Chair of the National Insurance Authority (NIA) further mentioned that previous directives from the NIA are being consolidated into a unified approach.
Insurance expert Dr. Rabindra Ghimire emphasized the importance of leveraging information technology and developing skilled manpower within the sector. He suggested working closely with educational institutions, training centers, and research centers to produce qualified professionals.
Ghimire also pointed out the problem of unhealthy competition in the sector, where some companies are insuring more than their capacity. He further stressed the need for a serious focus on preventing money laundering in the industry.
Comment