Kathmandu: After the full stop in the race for reinsurance company, now the same group of investors are preparing to apply for non-life insurance company.
When Beema Samiti had called for a reinsurance company’s license, five applications were received. At that time, Prudential Re, Genuine Re, Annapurna Re, Kathmandu Re and Himalayan Re Insurance Company had applied to the regulatory authority for the license. But Himalayan Reinsurance Company got the license. Himalayan Re plans to launch the business in a few days.
Those who have not got reinsurance license are lobbying with BS for non-life insurance license. There is talk of setting up seven non-life insurance companies by groups that could not succeed to obtain license for reinsurance.
The group behind Genuine Re is among the investors group interested for non-life insurance company. The company has stated that it is preparing to register with Beema Samiti as most of the procedures have been completed.
Similarly, a group of Kathmandu Reinsurance Company is currently preparing for Mahalakshmi General Insurance. Meanwhile, Asian Life Insurance Group is preparing to apply for the license to run Asian General Insurance. Similarly, Reliable Life Insurance Group is also planning to open Reliable General Insurance Company.
Apart from this, discussions are going on to open Manakamana General, Shubh General and Annapurna General Insurance in the market.
Beema Samiti is of the opinion that licensing a new company will not make any difference as the access to non-life insurance is still very low in Nepal.
But it will be very difficult for the regulator to regulate all insurers in future without strengthening it’s institutional capacity.
Some are of the opinion that since non-life insurance companies carry only one year of liability, there is no need to tighten the license. Those who can’t do satisfactory business will merge.