Insurance Sector in the fifteenth periodic plan of Nepal

Insurance Sector in the fifteenth periodic plan of Nepal

Insurance in the fifteenth periodic plan of Nepal (2076/77 – 2080/81):

1. Background:

The insurance sector plays an important role in providing financial security by protecting human life, property, and liability from natural and human-created risks. The contribution of this sector to the economy has been steadily increasing due to the policy of expanding access to insurance, as well as the provision of subsidy from animal and crop insurance, concessional loan insurance, and health insurance, after the catastrophic earthquake of 2072 BS.

The use of technology, innovation, and international affiliation in the insurance sector has enhanced the quality of service. In addition, various types of insurances have been developed while the quick claim payment system has gone ahead. Life insurance accounts for 14 percent of the population.

Also read: Current 15th Periodic Plan of Nepal in English | Highlights and Targets

Also read: Health and Nutrition in 15th periodic plan of Nepal

2. Key Issues:

Insurance coverage is narrow, rural areas, low income and poor access to insurance are poor, insurance is not familiar to the general public as a way of mitigating risk, the agriculture sector cannot be included as expected, ordinary people cannot be assured of insurance and simple and quick claim payment system as expected development. Not having insurance is one of the major problems in the insurance sector.

3. Challenges and opportunities:

Expanding the scope of insurance, extending access to remote areas, poor families and all sectors, expanding health insurance, micro insurance, agricultural insurance, and preventive loan insurance, expanding regulatory bodies in line with a federal structure, expediting simple and quick claim payment systems, insurance fraud. Structural arrangements and insurance information access add to the main challenges.

Risk mitigation through health insurance, micro insurance, and concessional loan insurance is a priority of the state, increasing public awareness, trust and trust in insurance, adopting a policy of expanding the market by life and life insurance companies, increasing the attraction of insurance for people due to earthquakes and various natural disasters; Increasing attraction towards insurance sector among young generation and the additional employment growth in the sector has been an opportunity for the insurance sector.

4. Regional vision, goals, objectives, strategies, and action plans:

4.1 Visions

Building a sustainable society and economy through risk reduction through robust and comprehensive insurance services.

4.2 Goals

To reduce the financial risk by bringing the risk of economic, natural, social, and other causes by developing and expanding insurance services in accordance with international practices and practices.

4.3 Objectives

To make the insurance sector effective and sustainable, to provide access to insurance services to all levels of society and businesses, including remote and low-income groups.

4.4 Strategy and Action Plans:

Strategies:

  1. To make policy, legal and institutional reforms in order to make insurance services effective and competitive and to ensure the rights of the insured.

Action Plans:

  1. Existing laws regarding insurance will be amended from time to time and implemented.
  2. A risk-based monitoring system will be implemented to minimize the risk of insurers in line with the existing international environment.
  3. The capacity of the regulatory body will be enhanced to make the regulation of the insurance sector robust, effective, and professional.
  4. In accordance with the federal structure, regulatory and insurance companies will be restructured and expanded.
  5. The institutional capacity of reinsurance will be increased.
  6. To provide insurance services based on international insurance practices, practices, and criteria.

Action Plans:

  1. International insurance services will be provided to make insurance and insurance intermediaries’ inspection and monitoring work more effective.
  2. Health insurance will be expanded by the traditional arrangements. Third-party facilitator development as an arbitrator will be enforced by legal provisions.
  3. Seasonal insurance, including crop and livestock insurance, will be strengthened and further expanded. An appropriate study will be implemented on pension schemes, government building, and property insurance including insurance.
  4. A quick claim payment system will be developed to simplify the insurance claim process.
  5. An investment environment will be created to invest the insurable amount of insurance in a safe and reward-oriented area.
  6. One of social protection. Developing the insurance business as an important pillar. Also, appropriate mechanisms will be developed for expanding insurance services to provide access to all citizens and areas, including the low-income class.

Action Plans:

  1. Branch offices of life and life insurance companies will be expanded at every local level, including areas where insurance is not accessible.
  2. In collaboration with the local level and community organizations, awareness of insurance-related in remote and rural areas will be enhanced.
  3. Small insurance with incentives will be implemented for remote, backward areas and low-income groups.

Expected achievements:

Insurance Regulatory bodies will have increased capacity, access to insurance services at every local level, including low income, remote and backward areas, property-based insurance population will have reached 5 percent, life insurance, and health insurance population will have reached 5 percent; Access to agricultural insurance will have reached 5 percent of farmers.

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About Life Insurance In Nepal

Life Insurance in Nepal is a blog that provides information regarding insurance, investing and finance. Moreover, the blog is concentrated on Life insurance.

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