Nepal:5 companies jostle for reinsurance licence

Five companies have applied to the Insurance Board (IB) for a reinsurance licence.

Mr Raju Raman Poudel, executive director of the IB, said that the regulator has received applications from five companies.

The five are Prudential Reinsurance, Kathmandu Reinsurance, Annapurna Reinsurance, Himalayan Reinsurance and Genuine Reinsurance, reported MyRepublica. “Of these, one will be selected to function as a reinsurance company,” Mr Poudel said.

To curb massive outflows of funds for reinsurance purposes by insurers, the government established Nepal Re in November 2014. The insurance pool that was set up in 2003 with a 50% equity participation of the government and the rest of insurance companies, mainly non-life companies, to cover damages caused by terrorism was converted into the country’s first reinsurer.

Source: Asia Insurance Review