Strengthening of internal regulation, good governance of insurance institutions emphasized

Kathmandu, March 23: Chair of Nepal Insurance Authority Sharad Ojha has said that it is necessary to strengthen the internal regulation and good governance of insurance institutions rather than regulation through intervention.     

Speaking at an interaction titled 'Insurance Sector now' organised by the Economic Media Association Nepal (EMAN) as part of a programme to felicitate newly appointed Chairman Ojha, he said regulatory steps would be taken to solve the problem based on the suggestions received from the stakeholders besides analyzing the contribution of the insurance sector.     

"Insurance companies should maintain their internal good governance and self-regulation in resolving the problems of underwriting in the insurance sector, and not only through the regulator's interventionist role. We will make necessary regulatory interventions keeping in mind the contribution of this sector to nation building," Ojha added.     

He pledged to continue the good practices of the past and make the reform efforts more systematic and refined.     

According to him, continuous discussions are being held and suggestions taken with the concerned bodies including insurers, intermediaries, surveyors' associations, among the stakeholders, for the improvement of the insurance sector.     

He stressed the need for initiatives from all sectors to strengthen the financial condition of the insurance companies.     

The National Insurance Authority (NIA) Chair said that the directives issued by the NIA in the past are being brought in an integrated form.     

Insurance expert Dr Rabindra Ghimire stressed on the need to make maximum use of information technology while preparing skilled manpower in this sector. He stressed the need to work with various educational institutions, training centres and research centres to produce skilled human resources.     

Ghimire also said that there is a problem in the insurance company insuring more than its capacity due to unhealthy competition. He said the issue of money laundering in this sector should also be looked into seriously.(RSS)