Insurance companies Reinsurance with Nepali companies Only instructed by Insurance Committee

Nov Sat 2021 08:53:18

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Insurance companies Reinsurance with Nepali companies Only instructed by Insurance Committee

Kathmandu. The Insurance Committee has instructed all insurance companies to do reinsurance business only with Nepali companies. The directive issued by the committee on November 26 states that all reinsurance business should be done with indigenous reinsurance companies except for the reinsurance provided as a direct share.

The committee had earlier directed all insurance companies to do 20 percent of the total reinsurance business with Nepal Reinsurance Company. As per the directive given by the committee on Thursday, the remaining reinsurance business has to be given to the indigenous reinsurance company.

At present, there are two reinsurance companies including Nepal Reinsurance Company and Himalayan Reinsurance Company. Following the directive of the committee, 20 percent reinsurance business has to be given to Nepal Reinsurance Company and the remaining 80 percent reinsurance business will be given to these two reinsurance companies.

Similarly, the committee has almost barred insurance companies from reinsuring with foreign companies. The committee has said that if the company refuses any reinsurance in the domestic reinsurance, the reinsurance of such rejection can be done with the foreign reinsurance company which has reached the qualification as mentioned in the reinsurance guideline 2078.