Necessary to increase the institutional capacity of market to improve the insurance sector: Finance Minister

KATHMANDU: Dr. Prakash Sharan Mahat, Finance Minister, stated that improving the institutional capacity of regulatory authorities and insurance market participants is required to improve the effectiveness of Nepal’s insurance sector.

Dr. Mahat made the remarks while speaking at the Asian Insurance Meet 2023 in Kathmandu on Friday.

He stated that Nepal’s insurance system has to be improved.

He stated that insurance brokers in Nepal have been unable to educate customers about the risks they face and the insurance available to mitigate them, and he called for collaboration with regulatory bodies and international organizations to strengthen the insurance market’s institutional capacity.

Minister Mahat stated that brokers must embrace digital platforms and harness technology in order to reach a broader spectrum of customers and deliver individualized services.

He also stated that all players must work together to increase flexibility in the insurance market.

He stated that the insurance business not only safeguards the interests of ordinary residents but also helps to the nation’s long-term prosperity.

He stated that, while the Asian continent undergoes fast economic transition, the insurance business must adapt to the changing environment and address risks efficiently.

He stated that reinsurers and brokers should collaborate to build solid risk management frameworks and strengthen supervisory systems.