PRIMER

Insurance is not merely a benefit but a fundamental protection. Unfortunately, despite more than five decades of the insurance business in Nepal, there remains a widespread misconception among the general public. Many still compare the amount insured with the amount deposited in a bank. The past devastating earthquakes in Nepal inflicted over seven billion in physical damages, a significant financial burden that could have been alleviated through proper insurance coverage. Similarly, the COVID-19 pandemic not only wreaked on people’s health but also caused irreparable financial damage and disrupted livelihoods. But the individuals and businesses invested in insurance on time, the impact would have been far less severe. Nepal faces various challenges within its insurance sector. Some insurance companies in the country engage in opaque practices, occasionally settling claims based on documentation rather than genuine needs. Additionally, a shortage of skilled manpower and agents
contributes to the difficulties in promoting insurance awareness and coverage. Furthermore, Nepal heavily relies on foreign insurance companies for reinsurance, resulting in substantial capital outflows every year. In contrast, in many other countries, insurance is not just a requirement but a vital component of the economy. To enhance the quality of life for its citizens, Nepal must embrace health insurance and micro-insurance at the local level. This necessitates a comprehensive understanding of these insurance types across all government levels and agencies. Therefore, to help to raise awareness in these issues, it is imperative to engage in meaningful discussions regarding the importance, role, challenges and opportunities within the Nepalese insurance sector. By dispelling misconceptions, improving transparency, and expanding insurance coverage, the country can better protect its citizens and boost its economic resilience.

EVENT INAUGURATION

EVENT OPENERS

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Event Special

The event officially kicked off after its been inaugurated by Honorable Chairman of Nepal Insurance Authority Mr. Surya Prasad Silwal in presence of Respected Governor of Nepal Rastra Bank, Mr. Ramesh Kumar Hamal Chairman of Securities Board of Nepal, along with Honourable Finance Minister Dr. Prakash Sharan Mahat and the Chairman of Bankingsamachar.com Mr. Raju Dhungel on event Special, “Special Duologue” via virtual platform.

SPECIAL GUEST

Keynote
Speaker

DR. PRAKASH SHARAN MAHAT

SESSION MODERATOR

MR. RAJU DHUNGEL

MR. MAHA PRASAD ADHIKARI

MR. RAMESH KUMAR HAMAL

MR. SURYA PRASAD SILWAL

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Overview of the Sessions

Sessions: 1
Topic : Collaboration between Federal Government & Local Bodies in Insurance Inclusiveness

MR. DIL BHUSAN PATHAK

MR. SURENDRA PRASAD PANDEY

MR. SURYA PRASAD SILWAL

MR. KAMLESH KUMAR AGRAWAL

MR. GAJENDRA MAHARJAN

Objectives:

1. Focus on Underprivileged Communities: Implementation of diverse insurance policies to benefit underprivileged communities and establish local insurance programs through licensed companies dedicated to their coverage.

2. Positive Trend in Claim Payments: Collaboration between the Nepal Authority and insurance companies has led to a positive trend in claim payments and minimized complaints.

3. Coordination Challenges: Address coordination issues between the Federal and local governments, including resource allocation and revenue distribution, which have hindered the prioritization of the insurance industry.

4. Negligence in Disaster Response: Nepali insurance companies have shown negligence in responding to disasters, such as the 2015 earthquake, highlighting the need for improvement.

5. Subsidies for Premiums: Consider offering subsidies in the National Insurance Policy to assist low-income communities in paying insurance premiums promptly, promoting industry growth.

6. Lack of Coordination Among Government Levels: The three levels of government—federal, provincial, and local—have not effectively coordinated in relation to the local level, impacting policy implementation.

7. Insurance Awareness: Increase awareness about insurance benefits and drawbacks, particularly in remote towns where knowledge is lacking.

8. Digitization and System Upgrade: Promote digitization in the insurance industry and update insurance policies to address changing needs, including the rising frequency of chronic diseases. Encourage local level creativity to solve hindrances effectively.

9. Advance Funding for Collaboration: Advocate for advance funding to promote effective collaboration between federal and local bodies in insurance endeavors.

10. Awareness Programs: Promote frequent awareness programs highlighting the significance and nuances of insurance for Nepali citizens.

Sessions: 2
Topic : Collaboration between Federal Government & Local Bodies in Insurance Inclusiveness

MS. SAMA THAPA

MR. SUSHIL DEV SUBEDI

MR. CHANKEE CHHETRY

MR. SUDYUMNA PRASAD UPADHYAYA

MR. GAJENDRA KUMAR JHA

Objectives:

1. Government Policy Impacting Vehicle Insurance: Weak government policies have led to a low rate of vehicle insurance among the population.

2. Advocate Insurance Importance to Government: Educating the government about the significance of insurance, its advantages, and the benefits of expanding insurance accessibility is crucial.

3. Lack of Understanding Among the Public: Many individuals lack a clear understanding of insurance premiums and associated risks, emphasizing the need for insurance companies to prioritize service over profit.

4. Low Vehicle Insurance Rates: Despite around 4 million vehicles in Nepal, only 30 percent of them are insured due to government policy weaknesses.

5. Insurance Industry in Transition: The insurance market, regulatory body, and insurance companies are undergoing a significant transformation, with efforts to shorten this transition period through policy changes.

6. Surveyor Collaboration: Insurance companies can assist surveyors in creating a more comfortable working environment, but surveyors must also invest in enhancing their own capabilities.

7. Surveyor Licensing Responsibility: The Nepal Insurance Authority is responsible for surveyor orientation and training, including licensing examinations. A conducive work environment and skill development for surveyors are essential.

8. Preservation of National Heritage Sites: None of Nepal’s national heritage sites are insured, highlighting the need for better protection of cultural treasures through insurance.

9. Benefits of Automated National Property Protection: Developing an automated mechanism for safeguarding national property could free up resources for developmental projects by reducing the need for compensation in the event of natural disasters and human peril losses.

10. Subsidy Issues in Agriculture Insurance: Farmers have complained about inadequate government subsidies for agriculture and livestock insurance, creating challenges in providing effective coverage. Suggestions have been made to target subsidies towards small farmers rather than large ones to ensure the sustainability of insurance programs.

11. Customer Expectations for International Standards: Nepali customers increasingly expect insurance policies that match international standards, which puts pressure on insurance companies to upgrade their offerings.

12. Marginalized Customer Segments: The insurance industry must cater to the unique needs of marginalized segments within the Nepalese society, making insurance accessible to all.

Sessions: 3
Topic : Uncharted Impacts of Life Insurance Companies in Nepalese Society & its Economy

MR. MANOJ KUMAR GYAWALI

MRS. PUJAN DHUNGEL ADHIKARI

MR. POSHAK RAJ PAUDEL

MR. PRAVIN RAMAN PARAJULI

PROF. DR. FATTA BAHADUR KC

Objectives:

1. Dominance of Agent Sales: Over 90% of life insurance sales in Nepal are channeled through agents, underscoring their pivotal role in the industry’s distribution and growth.

2. Agent Training Imperative: To foster insurance literacy and facilitate well-informed insurance decisions among the public, comprehensive training programs for agents are imperative. These programs can empower agents to effectively convey the nuances of insurance products to potential policyholders.

3. Agent Qualification Requirement: Emphasizing the significance of agent training, the Insurance Act stipulates that individuals must pass a test to become agents. This regulatory requirement underscores the importance of adequately preparing agents to serve the needs of policyholders.

4. Insurance Mergers for Efficiency: Recognizing the need to enhance efficiency and align with risk-based capital requirements, the industry is advocating for insurance company mergers. These mergers aim to consolidate resources and improve the qualiity of services.

5. Need for Skilled Professionals: To drive positive change in the insurance sector, there is a critical need to cultivate confident and skilled professionals who can navigate the complexities of the industry and serve the diverse needs of policyholders effectively.

6. Nationwide Awareness Drive: Raising awareness about insurance throughout the nation is paramount to expanding the industry’s reach and impact. Nationwide campaigns can help bridge the gap in understanding and access to insurance services.

7. Marginalized Communities: Insurance holds particular significance for marginalized communities in Nepal, acting as a vital tool for safeguarding and fostering prosperity among these groups.

8. Economic Factors Affect Surrender Rates: High policy surrender rates can be attributed to economic weaknesses, declining purchasing power among citizens, reduced business ticket sizes, and the blacklisting of many business entrepreneurs.

9. Policy Revival Campaigns: In response to high surrender rates, the insurance industry is implementing policy revival campaigns, with a special focus on customers facing economic hardships. These efforts aim to retain policyholders during challenging times.

10. Subsidies and Fee Waivers: To support policyholders who have suffered financial setbacks, the industry may offer subsidies or fee waivers. These measures facilitate prompt premium payments and help policyholders maintain their coverage.

11. Identifying Underserved Areas: Local governments and insurance companies should collaborate to identify underserved and unserved areas, facilitating the expansion of insurance services to reach those in need.

12. Need for Research and Development: The research and development sector within the insurance industry requires greater investment. This includes product innovation, particularly through need-based programs, to ensure that insurance offerings align with evolving customer needs.

Sessions: 4
Topic : Digitalization of Insurance Companies in Nepal

MR. SANJOG KOIRALA

MR. PRAKASH BIKRAM KHATRI

MR. NIRMAL KAJEE SHRESTHA

MR. BIRENDRA BAHADUR BAIDAWAR CHHETRY

MR. KISHOR DAHAL

Objectives:

1. Comprehensive Digitalization: Nepal’s insurance sector is primed for comprehensive digitalization, encompassing customer onboarding, agent recruitment, policy processing, and claims handling, focusing on simplicity for effectiveness.

2. Hybrid Digital Policies: The industry is shifting towards hybrid digital policies that combine digital lead generation with agent or distribution channel involvement.

3. Digital Ecosystem: Building a robust digital ecosystem with well-equipped service providers and databases is crucial for the insurance industry’s success.

4. Agent Empowerment: Agents should be trained as experts and consultants to understand customers’ needs and backgrounds better, enhancing customer service.

5. Regulatory Compliance and IT Infrastructure: Adhering to multiple regulators’ instructions requires substantial investments in IT infrastructure and regulatory compliance.

6. Generational Preferences: Recognizing the preferences of Generation Y and Z is essential for innovation and growth through digitalization.

7. Post-Sales Digitalization: Prioritizing post-sales digitalization can enhance customer experience, offering timely solutions for payments, claims, and maturity.

8. Risk Management and Security: Investment in robust risk management systems is crucial, and concerns over IT capabilities and data security need to be addressed.

9. Foreign Employee Protection: Mandatory digital term insurance for foreign employees presents an opportunity to safeguard citizens working abroad.

10. Aggregator Implementation and Budget Allocation: Enforcing aggregators for policy comparison and increasing budget allocation for IT departments can drive industry growth and data security.

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500+ INVITES
04 SESSION

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